Office and Retail markets in Tirana remain sedate in 2010

Tirana, September 29, 2010 – Colliers International Albania is happy to announce the results of its Real Estate Review for the first half of 2010. According to Colliers, the total office stock of Class A, B+ and B in Tirana amounts to 63,400 m2 and no new supply has been added to this inventory since the entrance of ABA Business Center in H1 2009.

The first half of 2010 marked an interesting increase in office demand from the city center to the outskirts of Tirana. Colliers believes this trend will continue due to lower rental rates and larger office space offered in these areas.

Vacancy rates have marked an increase since the second half of 2009 and rental rates have experienced a slight decrease respectively.

Parallel to the office market, the retail segment is continuously increasing its quality brands from international retailers such as COIN department store, LC Wakiki, Fergi and more. Similar to the office market, retail rental rates have dropped and vacancy rates have increased respectively.

Colliers forecasts office and retail supply to remain sedate until the end of year, but the on going under construction projects such as TID tower and Tirana East Gate shopping mall are expected to enter the market within 2011-2012 by thus increasing both office and retail sector supply.

“2010 has already seen an overall revival in the real estate market in Tirana and with the entrance of Tirana Business Park we hope to see an increase of quality office space to proper International Class A standards”, said General Manager Stela Dhami.

As new supply enters the market, Colliers expects both the office and retail market to experience a decrease in rental rates and higher vacancy rates due to upcoming projects and developments in the market.