Rents in the capital have risen recently, especially in suburban areas. A 1 + 1 apartment for rent even in the suburban area, can hardly be found cheaper than 25-30 thousand ALL per month, while a year ago it fluctuated around 20 thousand ALL. High demand from district arrivals and improved quality of furniture by landlords are cited as the main reasons behind this increase. In contrast, the departure of foreigners due to the pandemic has reduced the demand for downtown and expensive apartments.
Real estate agencies claimed for Monitor that the average rent of 2 + 1 apartments with rational furniture for the areas of Astiri, Paris Commune, Rruga e Elbasanit and the Dry Lake after the November 26 earthquake has so far increased by 16 to 20%.
There is an increase in prices in these areas for 1 + 1 apartments up to 30%. In the suburbs, such as the Astiri area, the average rental price for 1 + 1 apartments has increased by 30%, in the Paris Commune area by 12%, in the Elbasan street by 10 to 20% and in the Dry Lake by 10%.
In the Paris Commune area, a 1 + 1 apartment can be rented for 40 thousand ALL, from 35 thousand ALL before. In the Dry Lake area, the price increase is even higher, from 35 thousand lekë to 45 thousand lekë. They are at the same levels at Elbasani Street.
In the area of Astiri, where a 1 + 1 apartment was rented a year ago for about 20 thousand ALL, now you can not find it cheaper than 25-30 thousand ALL (25 thousand ALL for poor quality furniture).
Demand for expensive homes is falling
On the other hand, the demand for rental apartments at expensive prices has decreased. The reason for the decline in demand according to the representative of the real estate agency "DevInf" is the restriction of movement from Covid-19 and the removal of employees of international organizations (many of them work online), as these rental properties in our country are more preferred by foreigners .
Residential rental for expensive properties, mainly targeting foreigners living in our country starts shrinking from March 2020. Closing borders and restricting movement reduced the demand for these properties, as many of them found it impossible to move to Albania.
Real estate agents predict that the price of residential property rents will fluctuate more on a case-by-case basis than sustained change due to the need for housing not related to the pandemic and the financial inability of family members to purchase affordable apartments high in Tirana.