Albanians spent 566m euros in 2019 on buying properties outside Albania

Albanians spent 566m euros in 2019 on buying properties outside Albania

 Albanians' spending on property outside Albania is growing rapidly year after year, indicating that part of the profits and savings generated within the country are transferred abroad, mainly by buying flats.

In the section of national accounts for Gross National Product (GDP), INSTAT reported that, in 2019, the expenditures of Albanians who are resident in Albania relating to property abroad reached 69 billion leks (566 million euros). Property purchases abroad marked a record level in 2019 with an annual increase of over 44 percent.

Expenditures on property abroad increased steadily, especially after 2011. They were low until 2007, but after the 2008 crisis, there was an unusual increase.

From 7 billion leks in property expenditures abroad in 2007, a year later, in 2008 this value increased more than fourfold, to 32 billion.

During the period 2008-2013, the expenditures of Albanian residents in Albania on properties abroad were 1.6 billion euros. In 2013 there was a decline in the indicator, where it is seen that only 11 billion leks were spent, or three times less than in 2012.

Expenditures of Albanians for property abroad in million ALL
Expenditures of Albanians for property abroad in million ALL
Property purchases abroad started again at a fast pace after 2014. According to INSTAT data, from 2014 to 2019, Albanians' expenditures on properties abroad reached 2 billion euros.

The record is held by 2019, where the value of the indicator reached 69.7 billion, or 431 million euros.

In the absence of financial instruments, Albanians are increasingly seeing real estate, especially housing, as an investment instrument. This trend is being seen by a large momentum of constructions within the country.

New constructions, especially in Tirana, are luxurious and target buyers with very high incomes. The incomes used to buy property is often not justified by official sources. The construction sector was one of the main typologies for money laundering by Organized Crime Organizations for 2020 reported the Directorate for the Prevention of Money Laundering.
Albanians spent 566m euros in 2019 on buying properties outside Albania Albanians spent 566m euros in 2019 on buying properties outside Albania Monday, May 03, 2021 Rating: 5
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