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Boom in real estate loans: Albanian companies are investing more!
The Albanian tourism sector is driving corporate investment in real estate, with an increase in loans and market exposure.
Boom in real estate loans: Albanian companies are investing more!
Companies in Albania are showing a strong interest in real estate investments, which is reflected in a continued increase in loans. In the first seven months of 2025, around 7 billion lek in loans were granted for the acquisition or construction of real estate. This figure represents an impressive 33% increase compared to last year, as Gazeta Express reported.
The favorable market conditions with low interest rates and a high supply of credit from banks have contributed significantly to this growth. Real estate loans have therefore become the most important product in the business segment. At the end of July, the total loan portfolio for real estate purchases by companies amounted to about 13 billion lek, which is around 2 billion euros.
Decline in other credit areas
Nevertheless, loans for real estate investments increased significantly to 17.2 billion lek, registering a 19% increase compared to the previous year. Despite the general decline in other areas, the loan portfolio for investments shows double-digit growth, reaching 285.2 billion lek at the end of April - an increase of 15.5% compared to the previous year.
Bank commitment and secured loans
Banks' exposure to the real estate market continues to grow, with 46% of outstanding loans to the economy secured by real estate. This development is supported by the introduction of countercyclical capital requirements by the Bank of Albania, which is intended to slow the growth of real estate loans. These measures are part of a broader trend that also reflects stagnation in overall loans at similar levels to last year.
Gross fixed capital formation in Albania increased by an average of 4.5% last year, which is above average economic growth. This increase is largely due to the role of bank credit, which contributed significantly to the expansion of investments.