After the boom of construction permits, apartment prices have subsequently increased.
The Bank of Albania in the Financial Stability Report for the second half of 2018 finds that housing prices have been increased by 5% compared to the first half of this year.
But despite the rise in prices, the information obtained by construction companies and brokers operating in the real estate market shows that there has been even more real estate sales than expected.
The Albanian capital once again continues to hold the main weight in the report and the sales coming out the Tirana area, including the center, periphery and out of the city areas, increased by 3.8% from the previous period.
But there is no such similar situation in the country's many districts and coastal zones where sales volumes have dropped.
The Bank of Albania notes, that despite the fact that real estate loan interest rates have increased by about 54%, most residential properties and those for commercial use are bought with bank loans.
On the other hand, the demand for obtaining a mortgage loan has increased.
The construction loan surplus has increased by 8.7% compared to the end of the first half of the year, as well as the quality of real estate loans while the ratio of non-performing loans has decreased.
But how long do you need to sell real estate?
According to the Bank of Albania, the average time of sale across the country during the second semester of the year was on average 10.9 months or about 1 month longer than in the previous six months.
For Tirana and other areas, the sales time has increased by around 1-2 months, while for the Coastal areas the selling time has been reduced by about 2.5 months.
Expectations for future prices and sales continue to remain optimistic, albeit at lower levels compared to the two previous half-years.