DREAM / The Prime Minister resigns and wakes up under the Parisian bridge!

 Kliko këtu për të tjera
Voxpress:

Foreign investment is increasing from property purchases, but is holding back in energy and industry

2024-03-28 10:04:16Biznes SHKRUAR NGA REDAKSIA VOX

Foreign investment is increasing from property purchases, but is holding back in

Investments in the real estate market led foreign investments in the Albanian economy for the second year in a row.

According to data from the Bank of Albania, last year, the investments of foreigners in real estate in Albania reached the value of 325 million euros, increasing by 12% more compared to 2022.

Real estate accounted for almost 22% of the total value of Foreign Direct Investment last year. The last quarter of the year also brought the highest value of foreign investments in this sector, with 71 million euros, 8% more compared to the last quarter of 2022.

The cycle of rapid growth in real estate prices in Albania in the post-pandemic years is largely supported by demand from foreign investors.

Foreign investments in properties are typical especially for coastal areas, where, despite the increase in prices, they remain quite competitive compared to other coastal countries in the region.

The strong increase in property prices in recent years has made real estate an even more attractive alternative and increased the number of buyers who have purchased properties for investment purposes.

The Bank of Albania estimates that at the end of 2023, the stock of foreign investments in the real estate market in Albania reached 1.56 billion euros, an increase of 40% compared to the previous year.

In the last decade, the stock of foreign investments in real estate has almost increased by more than 20 times.

Based on the methodologies used to measure foreign investments, their flows are valued at the average exchange rate of the period, while the stock is valued at the exchange rate of the last day of the period.

According to the Bank of Albania, the increase in the investment stock did not come only from new flows, but also changes from the exchange rate, price changes and other changes should be calculated. This means that the stock of foreign investments is periodically re-evaluated, reflecting the change in asset prices.

The second sector in terms of specific weight against the total Foreign Direct Investments last year was the extractive industry. This sector brought investments in the amount of 270 million euros or 18% of the total. Investments in this sector increased by less than 1% compared to the previous year.

The stabilization of crude oil prices in international markets has restrained the growth of investments in oil extraction, after the significant increase they recorded in 2022.

High growth last year was marked by investments in the financial services sector, which touched the value of 239 million euros, increasing by 51% compared to the previous year. Investments in this sector accounted for 16% of the total flow of foreign direct investments for 2023.

The banking sector continues to bring significant investment flows, supported by high annual profits and the increase in regulatory capital requirements in recent years.

Investments in the energy sector last year fell to the value of 159 million euros, 9% less compared to 2022. Last year's decline may have been influenced by the cycle of major projects, the Karavasta photovoltaic park, where the value of most of the investment was concentrated in 2022. However, energy, and in particular solar, continues to attract high attention from foreign investors, as well as domestic ones. The stock of foreign investments in energy has already exceeded the value of 3.3 billion euros.

Another sector where foreign direct investment decreased last year is the processing industry. Foreign investments in this sector decreased to 124 million euros, 15% less compared to the previous year.

Foreign investments in the manufacturing industry have been mainly concentrated in the fashion sectors, including the branch of the automotive industry. However, it seems that the increase in wages and the strengthening of the Lek is making this sector less attractive for new investments.

According to data from the Bank of Albania, foreign direct investments last year reached a record figure of 1.49 billion euros, the highest historical level. The value of foreign investments increased by 9% compared to the previous year.

Foreign investment is increasing from property purchases, but is holding back in


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×