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 residential property market has been one of Europe's fastest-growing over the past two years, with prices in some areas nearly doubling since 2021.
In this article, we cover the current housing prices in Albania, what has driven recent changes, and where the market is likely heading through 2026 and beyond.
We constantly update this blog post to reflect the latest data, so you always have access to fresh numbers.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Albania.
Insights
- Albania's housing prices jumped roughly 18% year-on-year through early 2026, far outpacing Europe's average growth of around 3% to 4%.
- Tirana's premium Blloku district now commands over €3,000 per square meter, putting it on par with secondary cities in Western Europe.
- The Bank of Albania introduced new mortgage lending caps in July 2025, limiting loan-to-value ratios to 85% for first homes and 80% for second homes in Albanian lek.
- Mortgage lending in Albania surged by 32% in the first half of 2025 compared to the same period the year before, reflecting strong buyer demand.
- Albania's population declined by about 1.2% to 2.36 million as of January 2025, yet Tirana and coastal areas continue to see rising demand due to internal migration and tourism.
- The new Vlora International Airport, opening for full commercial flights in 2026, is expected to lift property values along the Albanian Riviera by 15% to 25%.
- Foreign buyers now account for roughly 24% of property transactions in Albania, pushing prices higher in expat-friendly neighborhoods.
- Coastal cities like Sarande and Vlore have seen the steepest price increases, with some areas recording 25% to 58% annual growth in 2025.
- Albania's GDP is projected to grow 3.6% in 2026 according to the IMF, supporting continued demand for residential property.
- Tourism accounts for about 20% of Albania's GDP, and visitor arrivals have nearly doubled since before the pandemic, fueling the short-term rental market.
What are the current property price trends in Albania as of 2026?
What is the average house price in Albania as of 2026?
As of early 2026, the average house price in Albania is approximately 17 million Albanian lek, which translates to around €160,000 or $175,000 for a typical 100-square-meter property.
Looking at it per square meter, Albania's average property price sits at roughly 170,000 Albanian lek per square meter, equivalent to about €1,600 or $1,750 per square meter.
For context, about 80% of property purchases in Albania fall within the range of 8 million to 30 million Albanian lek, or roughly €75,000 to €280,000, depending on location and property type.
These averages blend together Tirana's higher prices (where mainstream apartments cost €2,000 to €2,800 per square meter) with more affordable inland and smaller coastal towns, so what you pay will vary significantly based on where you buy.
How much have property prices increased in Albania over the past 12 months?
Albania's property prices increased by an estimated 18% to 26% over the past 12 months, making it one of the fastest-growing residential markets in Europe during that period.
The range of price increases varies by location, with Tirana seeing growth of around 14% to 22% year-on-year, while popular coastal areas like Sarande and Vlore recorded increases of 20% to 30% or even higher in the most sought-after spots.
The single most significant factor behind this price movement has been strong demand driven by tourism growth and diaspora investment, combined with limited supply of quality new-build apartments in prime locations.
This follows an exceptional surge in 2024 and early 2025, when the Bank of Albania's Fischer housing price index reported gains as high as 41.7% year-on-year nationally, though that extraordinary pace has since moderated.
Which neighborhoods have the fastest rising property prices in Albania as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Albania are Liqeni Artificial (Lake Area) in Tirana, the Vlora Lungomare seafront corridor, and Ksamil near the Greek border.
Liqeni Artificial has seen annual price growth of approximately 20% to 25%, Vlora's seafront has recorded gains of around 22% to 28% (boosted by the upcoming airport), and Ksamil has experienced increases of 25% to 35% thanks to its extreme seasonal tourism demand.
The main demand driver behind these neighborhoods is a combination of lifestyle appeal, limited supply of prime-location properties, and strong rental income potential from short-term tourist rentals during the summer season.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Albania.
Other fast-rising areas include Blloku in central Tirana (the city's lifestyle hub), Komuna e Parisit (popular with families), Dhermi and Himare on the Riviera, and the Sarande waterfront.
We have made this infographic to give you a quick and clear snapshot of the property market in Albania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Albania as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Albania is: new-build apartments (fastest), sea-view coastal apartments, modern villas in premium locations, older apartments without parking or elevators, and finally detached houses in shrinking-demand towns (slowest).
New-build apartments in prime Tirana corridors and coastal locations are appreciating at roughly 18% to 28% annually, significantly outpacing older stock which is growing at closer to 8% to 12%.
The main reason new-build apartments are outperforming is that Albanian buyers strongly prefer turnkey properties with modern amenities like elevators, parking, and energy efficiency, and these units are also easier to rent to tourists.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Albania as of 2026?
As of early 2026, the top three factors driving Albania's property prices are strong tourism and short-term rental economics, supportive credit conditions with the Bank of Albania's policy rate at 2.5%, and persistent supply shortages in prime locations.
The single factor with the strongest upward pressure is tourism-linked demand, as Albania's visitor arrivals have nearly doubled since before the pandemic, and property owners can earn attractive rental yields during the summer season.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Albania here.
On the downside, Albania's shrinking population (down 1.2% to 2.36 million as of January 2025) puts long-term pressure on demand in towns outside the main hubs, and affordability constraints are beginning to push some buyers to wait.
Get fresh and reliable information about the market in Albania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What is the property price forecast for Albania in 2026?
How much are property prices expected to increase in Albania in 2026?
As of early 2026, Albania's property prices are expected to increase by approximately 7% to 12% nationally over the full year, representing a moderation from the extraordinary gains of 2024 and early 2025.
Forecasts from different analysts range from a conservative 5% to 7% (assuming some affordability pushback) to a more optimistic 12% to 15% (if tourism demand stays exceptionally strong and credit conditions remain supportive).
The main assumption underlying most price increase forecasts is that Albania's GDP will grow around 3.6% in 2026 as projected by the IMF, inflation will remain contained near the 3% target, and tourism arrivals will continue their upward trend.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Albania.
Which neighborhoods will see the highest price growth in Albania in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Albania are Vlora's Lungomare and Uji i Ftohte area, Sarande's waterfront, Tirana's Liqeni Artificial district, and Komuna e Parisit in the capital.
These top neighborhoods are projected to see price growth of 10% to 18% during 2026, outpacing the national average due to their combination of lifestyle appeal, infrastructure improvements, and strong rental demand.
The primary catalyst driving expected growth in these areas is improved accessibility, particularly the opening of Vlora International Airport for full commercial flights in 2026, which will dramatically reduce travel time to the Albanian Riviera.
One emerging neighborhood that could surprise with higher-than-expected growth is the Dhermi and Himare corridor on the Riviera, which remains relatively less developed than Sarande but benefits directly from the new airport's catchment area.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Albania.
What property types will appreciate the most in Albania in 2026?
As of early 2026, the property type expected to appreciate the most in Albania is new-build, rentable apartments in Tirana and walkable coastal zones, particularly studios, one-bedrooms, and compact two-bedrooms.
These efficient rental apartments are projected to appreciate by 12% to 18% during 2026, outperforming villas and older stock by several percentage points.
The main demand trend driving appreciation for this property type is the combination of strong tourism flows (supporting short-term rental income) and urban professionals seeking quality city apartments, which concentrates buyer interest on the most liquid segment of the market.
The property type expected to underperform is older apartments without parking or elevators, which will likely see growth of just 5% to 8% as buyers increasingly prioritize modern amenities and building management quality.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Albania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Albania in 2026?
As of early 2026, the Bank of Albania's policy rate sits at 2.5%, which remains supportive for mortgage borrowing and is helping to sustain property demand across the country.
Mortgage rates for loans in Albanian lek currently range from around 6% to 9% depending on the bank and loan terms, while euro-denominated mortgages can be found at 4% to 6%, though the central bank has introduced stricter rules to limit foreign currency borrowing risks.
A 1% increase in mortgage interest rates typically reduces borrowing capacity by 8% to 10% for the average Albanian buyer, which would translate into downward pressure on prices, particularly in areas where affordability is already stretched.
You can also read our latest update about mortgage and interest rates in Albania.
The Bank of Albania introduced new lending caps in July 2025, limiting loan-to-value ratios to 85% for first homes in lek and requiring stricter debt-to-income tests, which should moderate speculative buying without crashing demand.
What are the biggest risks for property prices in Albania in 2026?
As of early 2026, the three biggest risks for Albania's property prices are affordability fatigue (where prices have outrun local incomes), a potential tourism shock from geopolitical events or weather disruptions, and oversupply in specific micro-markets where too many similar new builds are hitting the market at once.
The single risk with the highest probability of materializing is affordability fatigue, as the rapid price increases of 2024 and 2025 have pushed housing costs beyond the reach of many local Albanian buyers, which could cause transaction volumes to slow.
Other risks include tightening financing conditions if the Bank of Albania raises rates faster than expected, and regulatory changes around short-term rentals that could reduce investor demand in coastal areas.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Albania.
Is it a good time to buy a rental property in Albania in 2026?
As of early 2026, Albania can be a good market for rental property investment if you buy in the right locations and focus on properties with strong, year-round rental appeal rather than purely speculative capital gains.
The strongest argument in favor of buying now is that rental yields in Albania remain attractive (ranging from 5% to 8% in Tirana and potentially higher in coastal tourist areas), tourism continues to grow, and financing conditions are still supportive.
The strongest argument for waiting is that prices have already risen dramatically over the past two years, which means entry costs are higher and future capital appreciation may be more modest than what early buyers enjoyed.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Albania.
You'll also find a dedicated document about this specific question in our pack about real estate in Albania.
Buying real estate in Albania can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Albania?
What is the 5-year property price forecast for Albania as of 2026?
As of early 2026, cumulative property price growth in Albania over the next five years is expected to be approximately 30% to 45% nationally, which translates to roughly 5% to 8% per year on average.
The range of 5-year forecasts spans from a conservative scenario of 25% to 30% cumulative growth (if affordability constraints bite and tourism growth slows) to an optimistic scenario of 50% to 55% (if EU accession talks accelerate and foreign investment surges).
The projected average annual appreciation rate over the next five years in Albania is between 5% and 8%, which represents a normalization from the exceptional 2024-2025 period but still outpaces most Western European markets.
The key assumption most forecasters rely on for their 5-year predictions is that Albania will continue its EU accession process (with a target of completing negotiations by 2030), which would bring institutional improvements, increased foreign investment, and higher confidence in the property market.
Which areas in Albania will have the best price growth over the next 5 years?
The top three areas in Albania expected to have the best price growth over the next five years are Tirana's premium lake district (Liqeni Artificial and Tirana e Re), the southern coastal corridor from Vlora through Himare to Sarande, and Farka/Sauk on Tirana's green edge for villa buyers.
These top-performing areas are projected to see 5-year cumulative price growth of 40% to 60%, outpacing the national average due to their combination of lifestyle appeal, infrastructure improvements, and limited supply of prime properties.
This differs somewhat from the shorter-term forecast because over five years, the impact of infrastructure projects like Vlora Airport will fully materialize, and areas that are currently slightly underpriced relative to their future potential will catch up.
The currently undervalued area with the best potential for outperformance over five years is the Dhermi-Himare stretch of the Albanian Riviera, which has strong natural appeal but less developed infrastructure than Sarande, meaning there is more room for appreciation as access improves.
What property type will give the best return in Albania over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over five years in Albania is a well-located, easy-to-rent apartment in Tirana or a walkable coastal zone, ideally a new-build or recently renovated unit with parking and good building management.
The projected 5-year total return for this top-performing property type is approximately 50% to 70% when combining price appreciation (30% to 45%) with cumulative rental income (net yields of 4% to 6% annually).
The main structural trend favoring this property type over the next five years is Albania's growing tourism sector (now 20% of GDP) combined with increasing urban concentration as people move from smaller towns to Tirana and coastal hubs for jobs and lifestyle.
For investors seeking a balance of return and lower risk over five years, a two-bedroom apartment in a strong Tirana neighborhood like Komuna e Parisit or Don Bosko offers steady rental demand year-round without the seasonal volatility of coastal properties.
How will new infrastructure projects affect property prices in Albania over 5 years?
The top three major infrastructure projects expected to impact Albania's property prices over the next five years are Vlora International Airport (opening 2026), the Porto Romano port redevelopment in Durres (over €500 million investment), and the Tirana-Durres Highway expansion (€300 million, completing 2026).
Properties near completed infrastructure projects in Albania typically see a price premium of 15% to 25% compared to similar properties without such access, based on historical patterns from previous road and urban development projects.
The specific neighborhoods that will benefit most from these infrastructure developments are Vlora's Lungomare and Uji i Ftohte (airport), the Tirana-Durres corridor suburbs (highway), and Durres Plazh and Golem (port and marina development).
How will population growth and other factors impact property values in Albania in 5 years?
Albania's population is projected to continue declining at around 1% to 1.5% per year over the next five years (from 2.36 million in 2025), which will limit overall housing demand growth but concentrate activity in the country's main urban and coastal hubs.
The demographic shift with the strongest influence on property demand in Albania is the continued internal migration from smaller towns to Tirana, which now holds over 30% of the country's population and is the only city consistently gaining residents.
Migration patterns over the next five years will be shaped by both continued emigration of working-age Albanians to Western Europe (a drag on demand) and increasing interest from diaspora buyers and foreign retirees (a boost to premium and coastal markets).
The property types and areas that will benefit most from these demographic trends are apartments in central Tirana (driven by urban migration), coastal properties in the Sarande-Vlora corridor (driven by tourism and diaspora investment), and quality retirement-friendly properties in mild-climate locations.
We made this infographic to show you how property prices in Albania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Albania?
What is the 10-year property price prediction for Albania as of 2026?
As of early 2026, cumulative property price growth in Albania over the next ten years is expected to be approximately 60% to 95% nationally, which translates to roughly 5% to 7% per year on average.
The range of 10-year forecasts spans from a conservative scenario of 50% to 60% cumulative growth (if demographic headwinds dominate and EU accession stalls) to an optimistic scenario of 100% to 120% (if Albania successfully joins the EU and attracts major foreign investment).
The projected average annual appreciation rate over the next ten years in Albania is between 5% and 7%, which would make it one of the stronger-performing European markets while remaining below the exceptional rates seen in 2024-2025.
The biggest uncertainty factor in making 10-year property price predictions for Albania is the timeline and outcome of EU accession negotiations, as full membership would bring institutional reforms, investor confidence, and potential convergence with EU property values, while failure or indefinite delay would cap growth potential.
What long-term economic factors will shape property prices in Albania?
The top three long-term economic factors that will shape Albania's property prices over the next decade are income growth and EU convergence (how fast Albanian wages catch up to regional peers), the durability of tourism as an economic engine, and the depth and accessibility of mortgage financing.
The single long-term economic factor with the most positive impact on property values will be continued income growth, as Albanian wages have been rising faster than inflation and this directly expands the pool of buyers who can afford quality housing.
The single long-term economic factor posing the greatest structural risk to property values is Albania's population decline, which if it accelerates could leave many properties outside the main hubs with few buyers and declining values.
You'll also find a much more detailed analysis in our pack about real estate in Albania.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Albania, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank of Albania Financial Stability Report | Albania's central bank publishes the country's official housing price index and market risk assessments. | We used it to anchor official housing price trends and identify market overheating signals. We cross-checked its data with construction costs and credit conditions. |
| Bank of Albania Monetary Policy | It's the primary source for Albania's policy interest rate that influences mortgage pricing. | We used it to describe interest rate conditions facing buyers in 2026. We translated the policy setting into affordability impact for households. |
| Bank of Albania Lending Trends Report | This central bank publication includes charts on mortgage rate trends for both lek and euro loans. | We used it to ground our mortgage rate discussion with actual reported ranges. We triangulated this with the policy rate to explain affordability pressure. |
| INSTAT Population Statistics | Albania's official statistics agency provides the definitive population count. | We used it to explain Albania's shrinking population and its impact on housing demand outside major hubs. |
| INSTAT Movements of Citizens | Official release based on border and police data compiled by Albania's statistics office. | We used it as a reality check for tourism and visitor flows, which drive coastal apartment demand. |
| INSTAT Construction Cost Index | The official measure of residential building cost changes in Albania. | We used it to separate price growth driven by construction costs from growth driven by demand or speculation. |
| IMF Albania Country Page | The IMF provides standardized macro projections from a top-tier international institution. | We used it for baseline GDP growth and inflation expectations, then mapped these to housing affordability scenarios. |
| IMF Article IV Consultation 2025 | The IMF's detailed annual assessment of Albania's economy and policy recommendations. | We used it to understand structural risks and growth outlook, and to validate our macroeconomic assumptions. |
| World Bank Albania Factsheet | Leading international institution with peer-reviewed country analysis. | We used it to cross-check macro growth assumptions and stress-test housing market scenarios. |
| BIS Residential Property Prices | The Bank for International Settlements documents cross-country property price indicators. | We used it to benchmark Albania's house price dynamics against international comparisons. |
| Eurostat House Price Statistics | The EU's official statistical body explains housing price index methodology. | We used it as a methodology reference for how housing indexes work and to benchmark Albania against EU averages. |
| Albanian Times | Reputable Albanian news outlet that directly quotes Bank of Albania housing data. | We used it where it clearly attributed figures to official Bank of Albania sources for year-on-year price changes. |
| CNA Albania | Albanian news outlet that reports Bank of Albania housing index results. | We used it to corroborate the late-2024 price spike and keep our narrative consistent across time periods. |
| INSTAT Consumer Price Index | Albania's official inflation data source. | We used it to keep all real versus nominal price discussions accurate and understandable. |
| RTSH English | Albania's national broadcaster provides reliable reporting on infrastructure projects. | We used it for the Vlora Airport timeline, which is a key infrastructure catalyst for coastal property values. |
| Trading Economics Albania | Aggregates official central bank data in an accessible format with historical tracking. | We used it to verify current interest rate levels and track the Bank of Albania's recent policy decisions. |
| Statista Real Estate Albania | Respected data platform with standardized real estate market overviews. | We used it for context on Albania's real estate sector trends and international comparisons. |
| Expatax Albania | Local expert source focused on Albania's property market with detailed price and yield data. | We used it for rental yield estimates and city-by-city price comparisons to validate our ranges. |
| US State Department Investment Climate | US government assessment of Albania's investment environment and regulations. | We used it to understand foreign buyer regulations and the broader investment framework affecting real estate. |
Get the full checklist for your due diligence in Albania
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
If you want to go deeper, you can read the following: