A significant part of Albanian individuals state that they do not have the opportunity to buy or build a house, which is in contrast to the boom that the real estate market is experiencing recently.
The Bank of Albania in the index that it compiles for the business and consumer confidence indicator, has one of the questions related to the purchase of houses.
Respondents are asked the question on a quarterly basis“Do you plan to buy or build a house in the next 12 months (to live on your own, a family member, as a vacation home, to rent, etc.).”? and the options are: Yes, for sure; Possible; Chances are not; Jo; I do not know.
The balance of answers to this question is -88, for the first quarter 2021, close to the maximum negative level (of -100), which indicates a high inability to buy a home. According to the methodology of the Bank of Albania, the balance indicator takes values between -100 and +100. An indicator above 0 indicates a greater number of positive than negative responses in a given quarter. Of the 15 questions asked by the Bank of Albania to measure consumer confidence (including assessment of financial situation, unemployment, expectations for large purchases, savings trends, unemployment, etc.) this is the answer that has the highest negative balance.
The inability to buy a home was highest in the first half of last year, especially in the second quarter, when the balance reached almost 90%, due to the uncertainty created by the pandemic and rising unemployment. However, in reality, the real estate market in that period was booming. Other INSTAT data showed that although in a period of pandemic, economic downturn and shrinking consumption, the real estate sector in the country is the only one that did not feel the crisis at all. For the first 9 months of 2020, real estate transactions amounted to ALL 76 billion (about EUR 612 million), again setting a record for the period in question, since 2009.
High impossibility even for buying cars
The second answer with the highest negative balance is that of buying a car. Consumers are asked the question:
“How many opportunities do you have to buy a car over the next 12 months?” The alternatives to the answers are: Very likely; Possible; Impossible; Completely impossible; I do not know.
The balance of responses in the first quarter 2021 was -61.2. as in the case of homes, the highest impossibility was in the pandemic period, in the first and second quarters of 2020.
According to Eurostat, Albania is one of the countries with the lowest number of vehicles in relation to the population, together with Macedonia./Monitor