House prices increased during the second quarter of 2016

House price index in the city of Tirane was increased again during the second quarter of this year. According to the Bank of Albania the house price index was increased by 5.2% during the second quarter of the year. This increase follows the highest increase by 11.2% of the first quarter. Based on the data of the Bank of Albania, the prices in the housing market in Tirana have been increased since mid-2015, with a clear trend for improvement. Meanwhile, an opposite trajectory in this period is faced with rental prices, which fell again during the second quarter, by about 10%. Return of increase of house prices in Tirana seems to be connected with an awakening of interest in investing in real estate. According to the Bank of Albania, these investments are also favored by the low interest rates in the banking market.