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Increase in housing prices in Tirana, expert: There is a flow of money of dubious origin

Politiko 2025-06-02 11:49:18

Increase in housing prices in Tirana, expert: There is a flow of money of

Economic expert Zef Preçi stated that the Bank of Albania's restriction on granting 100% of the value of loans for the purchase of apartments is appropriate, but overdue.

Invited to "MCN Live", Preçi stated that the value of property in Tirana has more than doubled, in favor of the seller and not the citizen.

This increase, according to him, is not justified by either increased costs or increased taxes, stating that there is a flow of money of dubious origin.

"If the city increases by 1,000 residents per year, the needs are much less and 8 or 9 million meters of permits issued increase the municipality's revenues and it is not known where they go."

The Bank of Albania's credit restriction measure is in the right direction, but overdue.

The fact that more than half of bank loans are dedicated to this sector shows that banks are more inclined to invest where there is a flow of money of dubious origin and are indirectly promoting this sector.

If a family has taken out a loan to buy a house under construction, they lose the ability to make future payments and risk losing their home.

"Fiscal peace" practically led to the temptation, to the facilitation, it is a tolerant policy that leads to this type of investment. But which are in fact very suspicious in terms of the method of financing.

I don't believe there is a bubble in construction, as long as there is an influx of money that is unknown where it comes from, the government has decision-making and banks that lend, meaning that 2 out of 5 square meters that are sold are covered by the bank, while the rest comes from cash, the registration of properties by third parties continues.

I see it as a risky sector that is not regulated by curbing credit, because curbing credit encourages the circulation of informal money.

"I also see it as a measure in the right direction, but it does not change the pace of construction. Basically, politics must take adequate measures. As long as money circulates outside the bank, it means that money is given out at interest," Preçi declared.

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