Business investments in new properties continue to climb this year, reflecting a strong demand in the real estate sector. According to INSTAT, construction permits for non-residential buildings—including commercial, industrial, office, and hotel projects—reached 15.1 billion lek (around 155 million euros) in the first half of the year.
This marks a 49% increase compared to the same period last year, with hotel construction being the main driver. Projects in the hospitality sector account for 58% of the total investment value, contributing significantly to the overall growth, while other commercial and industrial constructions have seen a slight decrease.
Although the total number of permits has dipped slightly—from 176 last year to 151 this year—the value of new investments continues to rise. The ongoing positive trend in Albania’s economy, especially the surge in tourism, has fueled the demand for new accommodation facilities, encouraging greater investment in hotels. A healthy real estate market and optimism about commercial and industrial developments have also supported investments in non-hospitality constructions.
Bank financing for real estate has mirrored this upward trend. Data from the Bank of Albania shows that in the first seven months of the year, businesses received around 33 billion lek in loans for property purchase or construction, marking a 13% increase compared to last year. Low interest rates and a wide range of financing options from banks have further stimulated investments in business properties. By the end of July, the total business real estate loan portfolio reached 198 billion lek (approximately 2 billion euros), making property loans a leading product in the business segment.
