TIRANA, June 16 – Housing prices in Albania continued to rise during 2025. At the same time, transaction volumes fell in the second half of the year. The Bank of Albania said the trend requires more time and data to determine whether it reflects a slowdown or a correction after strong sales earlier in the year.
In an interview with media, Klodion Shehu, Director of the Financial Stability Department at the Bank of Albania, said the institution continuously monitors developments in the real estate market. He said the bank assesses their impact on financial stability in the country.
Shehu said the Albanian banking sector remains stable. He pointed to solid financial indicators and satisfactory loan portfolio quality. He added that the banking system has sufficient capacity to withstand potential shocks. At the same time, he said the central bank continues to monitor property price growth to prevent long-term risks.
Demand for property remains high, especially in coastal areas. Shehu said domestic buyers and non-resident citizens both support this demand. He also linked the trend to the continued development of the tourism sector, which he said drives real estate investment.
Turning to housing loans, Shehu urged citizens to act with caution before taking credit. He advised borrowers to carefully assess current income and future financial prospects. He also stressed the importance of fully understanding contractual conditions, obligations and rights in banking agreements.
Meanwhile, the Bank of Albania has introduced macroprudential measures for new real estate loans. The institution said the measures aim to strengthen financial stability and protect consumers from excessive debt.
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