The average Albanian family has assets and wealth amounting to EUR 71,357, mainly attributed to real estate, according to a survey from the Bank of Albania.
The survey divided wealth into real assets such as real estate, businesses, vehicles and valuables, and financial assets such as current and savings accounts, pensions, and money owed as debt.
This average is somewhat deceptive however as a third of the population live below the poverty line, while a handful own vast sums of wealth and property throughout the country and abroad. While the average was over EUR 71,000, the median was just EUR 47,800. This lower median demonstrates inequality when it comes to income and wealth distribution.
Most assets held by Albanians were tied up in real estate, accounting for 93% of the total. Within this, the primary dwelling accounts for 80% with a value of around EUR 43 million. A further 93% of Albanians own their home, either in full or through a mortgage.
When it comes to financial assets, these account for around 7% of Albanians’ wealth. Some 10% have current accounts, 7% have savings accounts, and only a few have pension funds or government securities.
A recent study by the bank also found that Albanians have little knowledge on financial products such as savings accounts and securities.
Just over half of Albanians could identify at least five financial products, compared to 83% globally and 86% in OECD countries. Less than 40% used a financial product in the last year, compared to the global average of just under 50%.
In terms of loans, Albanians prefer to turn to friends and family to borrow money instead of the banking system, with 33% pursuing this method compared to around 43% internationally.
Just 29% of the population said they had payment products while 22% had a savings product. Some 13% had credit products while just 9% engaged with securities products.
