Demand For Office Space Stalls in Tirana

Tirana East Gate Project | Photo courtesy of developer

“The retail market experienced an increase in vacancy rates reaching 10.8 per cent and a significant decrease in rental prices in some shopping centers in the range of 30-50 per cent in the first quarter of 2011,” Colliers said.

“High street and secondary retail streets continue to report a drop of 20-30 per cent in retail sales and a high turnover of shops,” the report added.

Despite the weak demand Colliers notes that the retail market in Tirana continues to be dynamic, as an additional 41,200 m2 is expected by end of 2011, with the opening of Tirana East Gate, the city’s newest and largest shopping centre.

Total competitive office stock in Tirana remains unchanged at a total 63.400 square meters available. No new supply of office inventory was added during the first half of 2011, with the office marker stagnant since 2009. Approximately 54 per cent of office stock is classified as class A.

The total development pipeline is register at 26,600 square meters, of which 9000 square meters under active construction.