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Thinking about buying a 3-bedroom apartment in Tirana? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Blloku or Komuna e Parisit where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Albania Property Pack.
Will property prices increase in Albania in 2025?
Yes, property prices in Albania are expected to rise in 2025, driven by a combination of economic growth and increasing foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Albania is becoming an attractive destination for both local and international property investors.
While there are challenges such as inflation and potential political instability, the main drivers behind Albania’s property price growth remain strong.
Demand, particularly in coastal and urban areas, continues to outpace supply, making significant price drops unlikely. Additionally, Albania's growing tourism sector and improving infrastructure are drawing more interest from buyers.
Signals pointing to a property price increase in Albania
Here are some factors suggesting prices could increase:
Albania's economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
The Albanian government is expected to continue implementing policies that attract foreign investment, particularly in the real estate sector, which could lead to increased demand and higher property prices.
Tourism in Albania is on the rise, with more international visitors discovering the country's natural beauty and cultural heritage. This trend is expected to continue in 2025, increasing demand for holiday homes and investment properties.
Infrastructure improvements, such as new roads and transportation links, are planned for 2025, enhancing accessibility to key areas and potentially increasing property values in those regions.
The Albanian diaspora is showing a growing interest in investing in property back home, particularly in urban centers and coastal areas, which could further boost demand and prices.
Albania's strategic location in the Balkans and its potential EU accession talks are attracting international investors, who see the country as a promising market for future growth.
The trend of remote working is encouraging more people to consider relocating to Albania, attracted by its affordable cost of living and scenic landscapes, which could increase demand for residential properties.
Signals pointing to a property price decrease in Albania
Here are some factors suggesting prices could fall:
Inflationary pressures could lead to higher living costs, reducing disposable income for potential homebuyers and possibly dampening demand for property.
Political instability or changes in government policies could create uncertainty in the real estate market, potentially deterring investment and affecting property prices.
Rising interest rates could make borrowing more expensive, limiting the ability of buyers to finance property purchases and potentially cooling the market.
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If property prices go up in Albania, how much would they increase by?
If real estate prices in Albania were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Albania appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Tirana for 100,000 euros today, don't be surprised if it's priced between 103,000 and 107,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Albanian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Tirana (60 sqm / 646 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
| Modern Apartment in Durrës (75 sqm / 807 sqft) | €120,000 | €123,600 | €126,000 | €128,400 |
| Luxury Villa in Saranda (100 sqm / 1,076 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
| Studio in Vlora (30 sqm / 323 sqft) | €45,000 | €46,350 | €47,250 | €48,150 |
| Loft in Shkodra (80 sqm / 861 sqft) | €160,000 | €164,800 | €168,000 | €171,200 |
| Townhouse in Berat (150 sqm / 1,615 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Investment Property in Gjirokastër (50 sqm / 538 sqft) | €75,000 | €77,250 | €78,750 | €80,250 |
Everything you need to know is included in our Property Pack for Albania
If real estate prices go up in Albania, which areas are likely to see the biggest increases?
Today, people who want to move to Albania are looking for a blend of historical charm and modern amenities, which Tirana's Blloku area offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in vibrant, youthful neighborhoods, and Kombinat has really started to gain attention.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Albanian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Blloku, Tirana | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Kombinat, Tirana | High | Ongoing urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Durres Beachfront | Medium-High | New tourism developments and infrastructure improvements are attracting both local and international investors. |
| Saranda | Medium | The growing popularity of coastal living and new residential projects are driving demand in this scenic area. |
| Vlora | Medium-High | Investment in local infrastructure and the development of new cultural and commercial spaces are boosting long-term value. |
| Shkodra | Medium | Cultural regeneration projects and improved connectivity are attracting new residents, leading to rising prices. |
| Gjirokastër | Medium | Heritage restoration projects and increased tourism are enhancing the area's appeal. |
| Berat | Medium | The city's historical significance and new tourism initiatives are driving interest and investment. |
| Fier | Medium | New industrial developments and improved transport links are making this area more attractive to investors. |
| Korçë | Medium | Cultural events and new hospitality projects are increasing its attractiveness for both residents and tourists. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Albania?
In 2025, Albania's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Tirana.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Tirana and other major cities are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense areas of Tirana and other cities, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Albania's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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