Survey on the developments in the real estate market in Albania
World history shows that there exists a significant relationship between the performance of the real estate market and the economic and financial situation. By analysing this interaction, it is possible in many cases to shed light on the performance of the financial and economic cycles, the stability of relevant indicators and the measures needed to correct them. Furthermore, this allows for the analysis of the consequences that real estate markets’ performance has on the economic and financial operators. Consequently, a significant component of the central banks’ surveys on financial stability is the monitoring of real estate market developments.
For several years now, the periodical surveys published by the Bank of Albania have paid close attention to monitoring and analysing the real estate market. To this end, the survey “On the developments in the real estate market” was conducted for the first time in 2013. This survey collects data regularly (every six months) from 230 construction firms and real estate agencies. INSTAT is in charge of the field interviews and the selection of entities based on the relevant methodology. The data collected is both qualitative and quantitative, and the questions cover the development in the real estate market in Albania in the past, present and future. The Housing Price Index is build based on the information collected from his survey, which consists of information currently not provided in an aggregate form by official data.
The data collected through the survey aims at addressing the public interest regarding the developments in the real estate market, and the implications that the market developments have on their activity. This approach:
- is not exhaustive, on the contrary, it is assessed as temporary until a more comprehensive system is devised, in which public and private entities will regularly exchange information on all the elements that affect the demand and supply of the real estate market. The exchange of information if done in a timely and appropriate manner will generate real estate market statistics in accordance with the methodological standards of the European Union;
- as such, it does not consist of and does not allow to reach conclusions on whether the development in the real estate market prices are normal or excessive. First and foremost, this survey calls for the improvement of the methodology mentioned in paragraph “a”.
After a long period of time, which was used to create a series with an appropriate length and to verify the stability of the results over time, the Bank of Albania assesses that the analysis is ready for publication. The analysis is accompanied by the questionnaire and the methodology of the survey, as well as the tables with time series for key indicators. The interested parties may use this information by taking into account, in each instance, the limitations of the chosen approach, potential gaps in the data collected for the survey and the possibly temporary nature of it.