Is the bubble starting?! The number of properties sold fell by 35% in the second half of 2025

The number of properties sold by entities monitored by the Bank of Albania decreased in the second half of last year. According to the Real Estate Market Performance Survey, the total number of properties sold was 1,273, or 35% less than the number reported at the end of the first half of the year (a total of 1,959 properties sold).

The average number of properties sold by each entity during the second half of 2025 was around 8, down significantly from the average of 11 reported during the first half of 2025.

The ratio of the number of entities that have made sales to the total number of valid responses was reported at 40%. This ratio has gradually declined in the last decade, from a maximum of around 70% estimated in the first half of 2017.

About 37% of sales realized during the second half of 2025 across the entire territory are represented by properties located in the most preferred areas within the city, and this weight is similar to the previous period.

31% of properties sold were properties built in the suburbs, within the city, up from 44% in the previous period, while about 32% of properties were properties built outside the city, up from 21% in the previous six months.

Although the number of properties sold declined, the average time to sell homes nationwide fell to 9.1 months, from 11.6 months in the previous survey.

In the case of Tirana, the average sale time decreased significantly to 8.1 months from 11.1 months in the previous half-year.

Meanwhile, the average time to sale in coastal areas increased to 9.9 months from 8.7 months, while for other areas, the duration of sale was lower than in the previous half-year, falling to 10.1 months from 12.8 months.

Also, despite the decline in sales, the number of unsold properties, both for residential and commercial buildings, has continued to decline. This phenomenon has been observed since the beginning of 2016. This trend shows that the number of unsold properties has continuously decreased in each of the six months of this period. The contraction of inventories (unsold properties) also in the second half of 2025, despite the decline in sales, can be interpreted as a decrease in the supply of new properties to be launched on the market, in the portfolio of the surveyed builders or sales agents.

About 46% of agents sold at the same price or up to 5% less than the asking price. The rest reported selling at a price between 5% and 20% lower than the initial asking price; a very small number sold by reducing the price by 30% or more.

According to agents, about 61% of residential and commercial properties sold by them were purchased with bank loans. Of these, in 38% of cases, the loan covered up to 60% of the value.

The Bank of Albania estimates that housing prices continued to increase at high rates in the second half of last year.

The Fischer index calculated by the Central Bank showed that the average price of homes sold during the period increased by 11.7% compared to the previous half-year and by 28% compared to the previous year. However, the annual price increase slowed from the 41.7% level reported in the first half of 2025.

In particular, the market appears to be slowing down significantly in the capital. The sales price index in Tirana was reported to be unchanged from the previous half-year and increased by 4.4% compared to the previous year. The annual price increase has fallen sharply from the 32.6% level in the first half of 2025.

The Bank of Albania estimates that the main contribution to the increase in the value of the general price index was made by the increase in the value of the index calculated for coastal areas.

Information on price performance and the assessment of the situation by agents in the real estate market is obtained through field surveys of a sample consisting of 230 entities whose main activity is the trading of real estate.

The selected subjects are real estate agents and construction companies, whose sales represent about 75%-80% of the turnover of the entire population. The Bank of Albania carries out the design of the questionnaire, as well as the distribution and processing of the results, while the Institute of Statistics covers the field interviewing, the main sampling processes and the physical control of the completed questionnaires/ Monitor