Authored by the expert who managed and guided the team behind the Albania Property Pack
Everything you need to know before buying real estate is included in our Albania Property Pack
Albania's property market has seen remarkable growth, with foreign investment reaching €380 million in 2024 and prices rising 5-27% annually in major cities.
As of June 2025, the market presents a compelling opportunity for buyers, characterized by strong rental yields up to 15.7%, major infrastructure investments exceeding €1 billion, and property prices still 40-50% below comparable Mediterranean destinations. Despite rising prices, Albania offers exceptional value with GDP growth of 3.2-3.5% and ongoing EU integration progress supporting market fundamentals.
If you want to go deeper, you can check our pack of documents related to the real estate market in Albania, based on reliable facts and data, not opinions or rumors.
| Factor | Status | Does it make it a good time to buy? |
|---|---|---|
| Property Prices | Rising 5-27% annually | Yes - Still below regional averages |
| Rental Yields | 6-8% urban, up to 15.7% coastal | Yes - Exceptional returns |
| Infrastructure Investment | €1+ billion in projects | Yes - Major value boost expected |
| Market Inventory | Declining since 2016 | Mixed - Act quickly |
| Economic Stability | GDP growth 3.2-3.5% | Yes - Strong fundamentals |
| EU Integration | Ongoing negotiations | Yes - Long-term positive |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Are current property prices in Albania offering good opportunities compared to 12 months ago?
Property prices across Albania have experienced substantial growth over the past year, but opportunities still exist for savvy buyers.
In Tirana, residential prices have surged between 5% and 27% year-on-year as of March 2025, with the premium Bllok district now commanding up to €5,000 per square meter. Coastal cities have seen even more dramatic increases - Vlorë property prices jumped 25% in the past year, with beachfront apartments now averaging €4,000-€5,600 per square meter.
Despite these increases, Albanian property remains significantly more affordable than comparable Mediterranean destinations. For context, beachfront properties in Vlorë cost roughly 40-50% less than similar properties in Montenegro or Croatia, while offering comparable rental yields.
The rapid price growth suggests the market is catching up to regional norms rather than overheating, indicating continued value for buyers who act quickly.
Is there more demand from buyers or supply from sellers in Albania's residential market?
The Albanian residential market firmly favors sellers in June 2025.
Inventory of unsold properties has been steadily declining since 2016, creating intense competition among buyers. Over 60% of real estate agents report selling properties at or near asking price, a clear indicator of strong demand outpacing supply.
This seller's market is particularly pronounced in premium districts like Tirana's Bllok and Paris Commune areas, where properties often sell within days of listing. Coastal tourist destinations including Sarandë and Vlorë experience high demand from both domestic and foreign buyers, while new developments near infrastructure projects see pre-sales selling out before construction completion.
The tight inventory situation shows no signs of easing in 2025, as new construction struggles to keep pace with demand fueled by foreign investment and domestic economic growth.
What are the specific price forecasts for Albanian residential property?
Based on current market dynamics and expert analysis, Albanian residential property prices are expected to continue their upward trajectory through 2025 and into 2026.
| Location | 2025 Forecast | 2026 Projection |
|---|---|---|
| Tirana (Premium) | 8-12% growth | 6-10% growth |
| Tirana (Suburban) | 10-15% growth | 8-12% growth |
| Durrës | 3-7% growth | 5-9% growth |
| Sarandë | 8-12% growth | 10-15% growth |
| Vlorë | 7-10% growth | 8-11% growth |
The Durrës market shows particular promise, with major port redevelopment and highway expansion projects expected to accelerate price growth beyond initial 3-7% projections.
Properties near new infrastructure projects typically see 15-20% premiums compared to similar properties in established areas. EU integration progress and limited central inventory continue to drive premium Tirana prices, while coastal tourism growth supports strong appreciation in Sarandë and Vlorë.
Are mortgage conditions in Albania favorable for property buyers?
Albania's mortgage market offers mixed conditions for buyers in June 2025.
The average mortgage interest rate stands at 4.37%, with banks offering rates between 2.9% and 6% depending on loan terms and borrower profiles. These rates are competitive within the Balkan region, though higher than EU averages.
For Albanian residents and citizens, conditions include a maximum loan-to-value ratio of 85% for first homes in Albanian lek, with loan payments capped at 40% of monthly income. Terms extend up to 30 years for residential properties, with processing typically taking 2-4 weeks for approval.
However, foreign buyers face a critical limitation: mortgages are generally unavailable to non-residents without documented Albanian income and long-term residence permits. Most foreign purchasers must either pay cash or secure financing from their home countries.
This restriction significantly impacts the foreign buyer segment, though cash purchases remain common given Albania's relatively low property prices compared to Western Europe.
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Is Albania's residential property market considered a safe investment?
Albania's residential property market demonstrates strong fundamentals supporting its investment safety in June 2025.
The country's GDP is projected to grow 3.2-3.5% this year, with low inflation at 2.29% and a stable currency that has appreciated since 2023. These macroeconomic indicators, combined with ongoing EU accession negotiations, provide a stable foundation for property investment.
Key safety factors include a clear legal framework for foreign buyers of apartments and urban real estate, high market liquidity in Tirana and coastal cities with strong resale demand, and a robust rental market generating 6-8% yields in cities and up to 15.7% in coastal areas. Growing tech sector and tourism are reducing dependence on single industries, while the EU integration process drives institutional improvements.
However, investors should consider potential risks including dependence on tourism in coastal markets, the cash-only requirement for most foreign buyers, and the need for careful due diligence on property titles, especially for older buildings.
Which Albanian cities offer the best value for property investment?
Different Albanian cities offer distinct value propositions for property investors in June 2025.
Durrës presents the best overall value with current prices 20-30% below Tirana and major port redevelopment driving growth potential. The €298.8 million highway project improves connectivity, while rental yields remain solid at 5-7% from mixed tourist and business traveler demand.
Sarandë offers the highest returns with rental yields up to 15.7% from short-term rentals. At €1,800-2,000 per square meter, prices remain affordable while the new international airport under construction promises extended tourist seasons compared to other coastal cities.
It's something we develop in our Albania property pack.
Tirana suburbs like Astir present strong capital appreciation potential at €1,400 per square meter, with growth rates outpacing central districts as the growing middle class seeks larger homes. Vlorë offers a balanced option with beach proximity, €4,000-5,600 per square meter pricing for prime locations, and new airport development improving long-term prospects.
What are the total costs of buying property in Albania?
Understanding the complete cost structure is essential for accurate investment planning in Albania's property market.
| Cost Category | Rate/Amount | Who Pays |
|---|---|---|
| Property Transfer Tax | 3% of declared value | Buyer |
| Notary Fees | €300-500 or 0.28-0.35% | Split between parties |
| Registration Fees | ~€85 (9,000 ALL) | Buyer |
| Legal Due Diligence | €500-1,500 | Buyer |
| Real Estate Agent | 3-4% of purchase price | Typically seller |
| Property Valuation | €200-400 | Buyer (if required) |
| Translation Services | €100-300 | Foreign buyers |
Total acquisition costs for buyers amount to approximately 4-5% of property value.
Annual ownership costs include residential property tax at 0.05% of market value (increased 20% in some areas in 2025), ground tax of 0.14-0.56 ALL per square meter for personal use, maintenance fees of €20-50 monthly for managed buildings, and average utilities of €80-150 monthly for a two-bedroom apartment.
How do current rental yields in Albania compare to other Mediterranean markets?
Albania's rental yields significantly outperform most Mediterranean markets in June 2025, making it particularly attractive for buy-to-let investors.
Sarandë leads with average gross yields of 10-12% and prime coastal yields reaching up to 15.7%. Tirana offers solid returns of 6-8%, while Vlorë provides 4-6% yields with coastal properties achieving 2.5-4.8%.
By comparison, Athens yields average only 3-4% with prime coastal at 4-5%, Montenegro's Budva offers 4-5% average and 5-6% coastal, while Croatia's Split provides just 3-4% average and 4-5% for prime coastal properties.
Albania's superior yields stem from lower property acquisition costs relative to rental income, strong tourist demand in coastal areas, a growing expatriate community in Tirana, and limited hotel infrastructure driving short-term rental demand. The 15% flat tax on rental income provides favorable treatment, while the newly mandatory licensing system for short-term rentals has strengthened the market by improving quality standards.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Albania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What major infrastructure projects will impact Albanian property values?
Three transformative infrastructure projects are reshaping Albania's property market dynamics through 2026.
The Tirana-Durrës Highway Expansion represents a €298.8 million investment completing in late 2025/early 2026. This project will reduce travel time by 30 minutes and is expected to increase property values along the corridor by 15-20%, with suburban developments between the two cities offering the best opportunities.
Porto Romano, Albania's new maritime hub, involves over €500 million in investment and will become operational by 2026 as the country's primary port. This development is expected to boost Durrës residential values by 20-30%.
It's something we develop in our Albania property pack.
New international airports in Vlorë (opening 2026) and Sarandë (expected 2027) promise 25-40% property value increases in surrounding areas. Current prices don't fully reflect future accessibility improvements. Additionally, the Durrës-Rrogozhina Railway modernization, with secured EU funding for completion by 2027, will enhance logistics and commuter options.
These projects collectively represent over €1 billion in infrastructure investment, fundamentally altering Albania's connectivity and property values.
Are there hidden risks for foreign property buyers in Albania?
While Albania's property market offers significant opportunities, foreign buyers should be aware of several important considerations.
- Legal restrictions: Foreigners cannot directly own agricultural land, requiring LLC formation, and face strict regulations on coastal development within 200 meters of the shoreline
- Financial limitations: No mortgage access without Albanian residency and income means cash purchases are typically required
- Title verification: Some older properties have complex ownership histories requiring thorough due diligence
- Seasonal income risk: Coastal properties may generate 80% of annual income in just 4 months
- Currency exposure: Properties priced in euros but expenses in lek create exchange rate risk
- Exit strategy considerations: While liquidity is good in major markets, smaller locations may have limited buyers
- Regulatory compliance: New short-term rental licensing requirements carry penalties for non-compliance
- Property management costs: Essential for absent owners, typically costing 15-20% of rental income
Market-specific risks include potential oversupply in rapidly developing areas, infrastructure project delays affecting value projections, and tourism dependence making coastal markets vulnerable to travel trend changes.
How does Albania's property market stability compare to neighboring countries?
Albania demonstrates competitive stability metrics compared to regional markets in 2025.
With GDP growth of 3.2-3.5%, Albania leads the region ahead of Montenegro (2.8%), North Macedonia (2.5%), and Greece (2.1%). The country maintains low inflation at 2.29% compared to Montenegro's 3.1% and North Macedonia's 2.8%, while the Albanian lek has been appreciating, providing currency stability.
Albania offers strong property rights protection, high market liquidity in cities, and growing foreign investment increasing 17% annually. The country benefits from low political risk as an EU candidate with ongoing integration driving institutional improvements.
Albania's advantages include the fastest economic growth in the region, a stable banking sector with no major crises, clear legal framework for foreign property ownership, active government support for real estate development, and continuous institutional improvements through the EU integration process. The main stability concern remains the market's relative youth and rapid growth, which could lead to corrections if external shocks occur.
What is the outlook for Albanian property prices in the second half of 2025?
The second half of 2025 promises continued momentum in Albania's property market, driven by several converging factors.
Short-term catalysts include record visitor numbers during the summer tourism season boosting coastal property demand, infrastructure milestones with Tirana-Durrës highway sections opening, potential progress in EU negotiation chapters, increasing Middle Eastern buyer presence, and possible year-end adjustments to property transfer taxes.
Price trajectories vary by segment: luxury coastal properties expect 5-7% increases by year-end, Tirana apartments anticipate 4-6% growth in established areas, suburban developments project 6-8% increases as infrastructure improves, student housing shows 3-5% growth with university expansion, and commercial conversion projects forecast 8-10% gains.
It's something we develop in our Albania property pack.
Key market indicators show building permits up 18% year-on-year, foreign buyers now comprising 24% of transactions, premium properties selling in under 30 days, favorable price-to-rent ratios at 12-15 years, and construction costs rising 5-7% annually. The combination of limited inventory, strong demand, and major infrastructure improvements suggests prices will maintain their upward trajectory through year-end and into 2026.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Based on comprehensive analysis of current market conditions, economic indicators, and future prospects, June 2025 represents a rather good time to buy residential property in Albania.
While prices have risen significantly over the past year, several factors support continued investment: strong fundamentals with GDP growth of 3.2-3.5%, low inflation at 2.29%, exceptional rental yields particularly in coastal areas reaching 15.7%, and major infrastructure investments totaling over €1 billion set to transform connectivity and property values. Albania still offers relative value with prices 40-50% below similar Mediterranean destinations, while EU integration progress and limited inventory suggest continued appreciation through 2026 and beyond.
Sources
- Investropa - Albania Real Estate Market Analysis
- Fakti.bg - Housing Prices Rising in Balkan Capital
- Investropa - Durres Price Forecasts
- Properstar - Sarande House Prices
- LinkedIn - Albania Real Estate Investment Overview
- Bank of Albania - Monetary Policy
- Trading View - Albania Mortgage Lending Rules
- Global Property Guide - Albania Buying Guide
- World Bank - Albania Economic Growth
- Eurofast - Albania Tax Card 2025
- Y-Tax - Real Estate Taxation in Balkan Countries
- Expatax - Albania Property Market 2025
- Euronews Albania - Infrastructure Investments 2025
- Albanian Times - Highway Expansion Costs
- LinkedIn - Foreign Investment in Albanian Real Estate