Bank of Albania survey shows most Albanians unable to afford large purchases – Exit
The latest Bank of Albania consumer confidence survey shows that most Albanians do not have enough capital to make major purchases or investments.
According to the survey, 88% of those surveyed could not afford to buy or build a house in the next 12 months, and around 61% responded that they would not be able to afford a car in the future. close.
The Bank report also noted that house prices have risen sharply in Tirana, reaching an average of € 1,900 per square meter in the city, ranking Tirana among the most expensive capitals in the region.
This decline in purchasing power contrasts with the boom in the Albanian real estate market in recent years.
More than ALL 15.6 billion (around € 127 million) of building permits were approved in Tirana alone in the first 3 months of 2021, according to the National Institute of Statistics (INSTAT). This represents an increase of 36% compared to 2020.
INSTAT also reported that in 2020 the Albanian construction sector was the only sector of the economy to register significant growth, rather than decline, due to the pandemic.
According to a report by the Global Initiative against Transnational Organized Crime released in May, residential prices in Albania almost doubled between 2017 and 2020. The report concluded that the construction boom in Albania and the surge in housing prices are not fueled by higher demand for housing or growth in formal income, but rather by “cash from organized crime and corruption”.