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
Why is Albania emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the rapidly growing tourism sector, or the competitive pricing compared to other European markets? What are the key benefits for investors?
We often encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. With the increasing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Albania's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
1) In Albania, you will get better rental yields than in other European countries
Albania's rental yield stands out compared to other European countries.
In cities like Tirana, the average rental yield is about 6.09%, with some areas hitting 7.42%. This is impressive, especially since property prices are quite affordable. Imagine buying a studio in Tirana for €55,000 and renting it for €340 monthly, which gives you a 7.42% gross rental yield.
The demand for rentals is on the rise, thanks to a booming short-term vacation rental market. From 2019 to 2023, bookings on platforms like Airbnb jumped by 543%, showing strong interest from tourists and expats. This is largely due to Albania's growing tourism sector, which is set to draw in about 10 million tourists in 2024.
Albania also offers low transaction costs, making it a hot spot for property investors. The limited supply of rental properties, due to high homeownership rates, adds to the strong rental market, pushing demand and prices up.
Sources: Global Property Guide, Euriskon, Worldly Assets
2) With so many tourists visiting Albania, you can easily rent out your property short-term
Albania's rich cultural heritage is a major draw for tourists, which in turn enhances short-term rental opportunities.
In 2023, international tourist arrivals in Albania nearly doubled compared to the previous year. By mid-2024, 4.5 million foreign visitors had already explored the country, marking a 34% increase from the same period in 2023. This surge is largely due to Albania's unique blend of history and natural beauty.
Tourists flock to Albania for its UNESCO World Heritage sites like Berat and Gjirokastër. These towns offer a fascinating look into the past, with their historic architecture and cultural significance. The Albanian Riviera, with its breathtaking coastline, is also a hot spot, offering a mix of relaxation and adventure.
The rise in tourism has led to a boom in Airbnb and short-term rentals, especially in Tirana and along the Riviera. More travelers are seeking accommodations to experience Albania's charm, driving up demand. The government is also playing a role, actively promoting tourism and cultural heritage to boost the economy.
Albania's efforts to enhance its tourism appeal are paying off. The country is becoming a competitive destination in Europe, attracting visitors with its rich history and stunning landscapes. Tourism initiatives are helping to grow the economy and create more opportunities for property investors.
With the increase in tourist numbers, short-term rental opportunities are expanding, making it an attractive option for property buyers. The combination of cultural allure and government support is creating a vibrant market for real estate investments.
Sources: Adido Digital, EBRD, Global Real Estate Fair
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.
3) With better property laws, Albania is becoming a safer place to invest
Albania's property laws have gotten a lot better, especially in 2023 and 2024.
The big change came with the Law on Cadastre 111/2018, which set up the State Cadastre Agency. This law made it clear how property rights and duties are managed, so now everything's more transparent and secure.
Then there's the Albanian System for Immovable Property Registration (ALBSREP). It brought all property data into one place, making it super easy to check and verify property details. This means fewer disputes and a smoother buying process.
Albania's efforts got a nod from the EU for Property Rights Programme, showing they're serious about matching EU standards. This has boosted confidence among foreign investors, which is a big deal.
In fact, Albania's progress was recognized when they were removed from the FATF ‘grey list’ in 2023. This move signals a safer investment environment, making it more appealing for those looking to buy property.
Sources: Neighbourhood Enlargement, Albania Report 2024, EU For Property Rights
4) Albania’s cuisine and lifestyle draw culinary tourists, making short-term rentals more popular
Albania is quickly becoming a culinary tourism hotspot, drawing food lovers from all over.
Visitors are flocking to the country to savor its unique flavors, thanks to a rise in culinary tours and experiences. Companies like Albania Food Tours are leading the way, offering guided adventures into the heart of traditional Albanian cuisine. These tours are all about showcasing local ingredients and cooking techniques, giving tourists a genuine taste of the region.
International media has also played a big part in putting Albania on the culinary map. Major outlets like CNN, BBC, and The Guardian have featured Albanian food, sparking interest worldwide. This buzz is matched by a growing number of restaurants in hotspots like Tirana’s Blloku neighborhood, where visitors can dive into authentic Albanian dishes.
Positive reviews on platforms like TripAdvisor and Google Reviews show that tourists are loving their Albanian food adventures. These glowing reviews suggest that people aren't just visiting for the food; they're having a blast while they're at it. The Albanian Institute of Statistics backs this up, showing a rise in tourist numbers specifically for food-related experiences.
Albania's culinary scene is not just about the food; it's about the whole experience. The local cuisine and lifestyle are attracting culinary tourism, boosting short-term stays as visitors come to explore and enjoy.
Sources: Albania Food Tours, CNN, TripAdvisor, INSTAT
5) With historical sites being restored, property values in Albania are on the rise
Albania's historical sites are being restored, boosting nearby property values.
The EU4Culture project, launched in 2020, is a major force behind these restorations. With a hefty budget of €40 million, it aims to breathe new life into 19 cultural heritage sites damaged by the 2019 earthquake. This initiative is not just about preserving history; it's about making these sites vibrant parts of the community again.
In 2023, Albania saw a 35% jump in tourism, welcoming 10.1 million foreign visitors. This boom is largely thanks to the restored cultural sites, turning Albania into a must-visit destination. Places like the National Puppet Theatre in Tirana and the Ethnographic Museum of Kruja are now shining examples of Albania's rich culture, drawing tourists from all over.
Real estate experts predict that property prices will keep climbing in 2025, fueled by economic growth, foreign investment, and the tourism surge. Homes near these beautifully restored sites are hot commodities, offering a unique blend of cultural and historical charm. This trend is catching the eye of both local and international buyers.
The media spotlight on these restoration efforts is also playing a role. By highlighting the importance of preserving Albania's cultural heritage, it’s creating a buzz that’s hard to ignore. This attention is not just about the past; it's about building a future where history and modern living coexist.
For those considering buying property in Albania, now might be the perfect time. The combination of restored historical sites and rising property values makes it an attractive investment. Whether you're looking for a home with character or a smart investment, Albania's evolving landscape offers both.
Sources: UNOPS, Albanian Daily News
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6) Albania’s varied landscapes give you a range of real estate options
Albania's diverse geography offers a wide range of real estate opportunities, making it an attractive destination for various types of property investments.
With its stunning 450-kilometer-long coastal Riviera, Albania is a magnet for tourists, drawing millions each year. This influx has turned the coastal areas into a hot spot for tourist rentals, with property owners seeing a significant boost in rental prices. If you're considering investing here, you could expect returns on investment in about 10-15 years.
Beyond the beaches, the Albanian government is keen on promoting rural tourism through initiatives like the “Mountain Package.” This program offers fiscal incentives and financial support for those looking to transform rural homes into guesthouses or agrotourism projects. It's a smart move, tapping into the growing demand for mountain retreats and offering a unique slice of Albanian life.
For those interested in agriculture, regions like Myzeqe are ripe with opportunities. These fertile lands are perfect for agricultural investments, adding another layer to the diverse real estate market. Imagine owning a piece of land where you can cultivate and contribute to the local economy.
Urban areas, particularly Durrës, have seen rapid development over the years. The cityscape is evolving with new structures and expanded building areas. However, this growth comes with its own set of challenges, such as the need for improved urban services and infrastructure. Despite these hurdles, the real estate market is thriving, with foreign property buyers increasingly investing in the area.
In recent years, Albania has witnessed a surge in foreign investments, reaching record figures. This trend highlights the country's growing appeal as a real estate destination. Whether you're drawn to the coast, the mountains, or the city, Albania offers a variety of options to suit different investment goals.
Sources: Euronews, Eurofast, Euriskon
7) Albania’s location puts you at the center of Europe, perfect for international investment
Albania's prime spot in Europe has been a big draw for international investors lately.
In 2024, the country pulled in €1.1 billion in foreign direct investment (FDI), with a hefty chunk going into real estate. This sector alone made up 20% of the total investments, showing a growing interest from foreign buyers, especially in Tirana and along the coast.
The tourism boom has also been a game-changer for investors. In 2023, Albania saw a record 10.1 million international visitors, pumping nearly L565 billion into the economy. This tourism surge has not only boosted local businesses but also ramped up the demand for real estate, with 27% of homes sold to foreign buyers in 2024.
Big infrastructure projects like the Trans Adriatic Pipeline (TAP) have made Albania even more attractive. While not directly shown in recent numbers, TAP is a key energy project that boosts Albania's energy security and connectivity. Plus, Albania's NATO membership and EU candidacy have upped its international profile, creating a more stable business scene.
Albania's strategic location and these developments are turning it into a hotspot for savvy investors looking for opportunities in Europe.
Sources: Albanian Times, WTTC, Y-Tax
8) With the economy growing, the real estate market is getting a boost
Albania's economy is on the rise, and it's having a positive impact on the real estate market.
In 2023, the country's real GDP grew by 3.4%, thanks to strong domestic demand and a booming tourism sector. This upward trend is expected to continue, with growth projected at 3.3% in 2024 and an anticipated acceleration to 3.4% in 2025. The tourism sector, in particular, has been a major player, drawing in more visitors and boosting demand for short-term rentals.
Foreign direct investment (FDI) is pouring into Albania, especially in tourism and construction. This influx is vital for developing infrastructure and the real estate market. The government is also stepping up with initiatives to improve the business climate, which is expected to boost productivity and attract more investors.
Tourism is thriving, with a noticeable increase in visitor numbers. This has led to a surge in demand for short-term rentals, with platforms like Airbnb reporting €45.5 million in revenues in the first nine months of 2023. This trend is pushing property prices up in key cities, making it an exciting time for potential buyers.
Albania's real estate market is benefiting from these economic shifts. The combination of increased tourism, foreign investment, and government support is creating a dynamic environment for property investment. If you're considering buying property here, now might be the perfect time to explore the opportunities.
Sources: European Commission, Veles Club, IMF eLibrary, World Bank
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.
9) With the hospitality industry growing, there are great opportunities for hotel investments
The hospitality industry in Albania is booming, creating exciting opportunities for hotel investments.
In 2023, Albania saw a remarkable surge in tourist numbers, with 4.5 million foreign visitors arriving in just the first half of the year. This represents a 34% increase compared to 2022, and the trend is expected to continue into 2024. The influx of tourists is not just a seasonal spike; it's a sign of Albania's growing appeal as a travel destination.
International hotel chains are taking notice and are increasingly entering the Albanian market. This growing interest from global brands highlights the sector's potential for growth and profitability. The Albanian government is also on board, having launched a National Tourism Strategy for 2024-2030. This plan aims to boost the sector's growth and sustainability, focusing on job creation and attracting more investment.
Infrastructure development is another key factor supporting this tourism boom. The Albania Infrastructure and Tourism-Enabling Programme (AITP) is set to enhance municipal and environmental infrastructure, as well as regional transport links. This makes it easier for tourists to access various destinations, contributing to higher hotel occupancy rates. The expansion of low-cost airlines offering flights to Albania is also playing a significant role.
With these developments, the hospitality industry in Albania is not just expanding; it's transforming. The combination of increased tourist arrivals, international hotel investments, and improved infrastructure is creating a vibrant environment for hotel investments. The government's strategic focus on tourism further underscores the potential for growth in this sector.
Sources: Visa Guide, WTTC, Albanian Times
10) You’ll find less competition in Albania’s property market compared to nearby countries
Albania's real estate market is less crowded than its neighbors, making it an appealing choice for property buyers.
One big draw is the affordable property prices. Even though prices for top-notch apartments in Tirana have gone up by 10-15% in the last year, they are still cheaper than in many nearby countries. This makes Albania a great spot for those looking for budget-friendly investments.
The market's growth is also at a comfortable pace. From 2024 to 2029, it's expected to grow at a steady rate of 6.14%. This means the market is stable and not too competitive, leaving plenty of room for new projects and investments without the fear of overcrowding.
Another factor is the limited presence of international investors in Albania compared to more established markets in the region. This means less competition and more opportunities for new investors to find good deals.
Albania's real estate scene is still developing, offering a unique chance for buyers to get in early. With fewer international players, the market is ripe for exploration and offers a fresh landscape for investment.
For those looking to invest in a market that's not yet saturated, Albania presents a promising opportunity with its combination of affordability and growth potential.
Sources: Statista, CE Report, LDR Group
Our team found this video discussing Albania's record-breaking foreign direct investments and how the relatively unsaturated real estate market offers lucrative opportunities compared to neighboring countries.
11) Albania’s EU accession process could boost property values
When a country is on the path to joining the European Union, it often sees economic changes that boost property values.
Take Albania, for instance. It's currently in the EU accession process and has been experiencing strong economic growth. In 2022, its GDP grew by 4.8%, and it's expected to grow by 3.80% in 2024. This growth is partly due to its steps toward EU integration. Plus, Albania's tourism is booming, with 10 million visitors in 2023, which hints at a promising rise in property values.
Foreign investment in Albania is also climbing. The EU has allocated over €500 million for financial and technical assistance from 2021 to 2024. This includes infrastructure projects like railway network upgrades and renewable energy initiatives. Such developments are likely to attract more foreign investors, further boosting property values.
Investor confidence is growing, thanks to Albania's EU accession prospects. This confidence can lead to a surge in foreign investment in real estate, making it a potentially lucrative market. The country's strategic location and natural beauty are additional draws for investors looking to capitalize on the expected property value increase.
Albania's journey toward EU membership is not just about economic growth; it's also about transforming its infrastructure and energy sectors. These changes are expected to make the country more attractive to investors, which could lead to a significant rise in property values.
Sources: Euronews, Wikipedia, EU-Albania Factsheet, IMF eLibrary, GIZ
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12) With Albania’s coastline gaining popularity among tourists, you’ll find a growing demand for vacation rentals
Albania's coastline is quickly becoming a hotspot for tourists, driving up the demand for vacation rentals.
In 2023, Albania experienced a surge in international visitors, with nearly double the number of tourists compared to the previous year. By mid-2024, the country had already welcomed 4.5 million foreign visitors, marking a 34% increase from the same period in 2023.
The Airbnb market in Tirana reflects this trend, with a median occupancy rate of 64% and an average daily rate of $41. The number of active Airbnb listings rose to 2,938 by September 2024, with typical listings being booked for 234 nights a year.
The Albanian government is actively promoting tourism, aiming to accommodate around 10 million tourists in 2023, a target that was largely met. This effort, along with positive media coverage and the expansion of low-cost airlines offering flights to Albanian coastal cities, has made it easier for tourists to visit, further boosting the area's popularity.
Low-cost airlines have expanded their routes to Albanian coastal cities, making it easier for tourists to visit and boosting the area's popularity. This accessibility, combined with the country's natural beauty and welcoming locals, is drawing more visitors each year.
With the government’s push and the allure of Albania’s stunning coastline, the demand for vacation rentals is expected to continue rising, making it an attractive option for property investors.
Sources: Euronews, Adido Digital, Airbtics
In this video, we can see that Albania's pristine coastline, crystal-clear waters, and untouched coves, like Dhërmi and Ksamil Beaches, attract more tourists, directly boosting demand for vacation rentals.
13) With minimal taxes, Albania is a cost-friendly choice for your property investment
Albania's low property taxes make it a hot spot for long-term property investment.
Residential properties are taxed at just 0.05% of their value, and commercial properties at 0.2%, which is much lower than in many European countries. This makes Albania a very appealing destination for property investors. In 2023 and 2024, the Albanian government reported that real estate tax contributed only 0.3% of the country's GDP, well below the regional average of 0.8%. This favorable tax environment encourages more investment.
Foreign investments in Albania's real estate sector reached a record 292 million euros in 2022, marking a 52% increase from the previous year. This surge is partly due to the competitive pricing in coastal areas compared to neighboring countries like Croatia and Montenegro. Low taxation is a significant draw for investors.
Albania's property tax burden is lower than in other Balkan countries, providing a comparative advantage for investors looking to minimize tax liabilities. Many expatriates and investors have highlighted low taxes as a crucial factor in their decision to invest in Albania.
The stable political and economic climate, combined with low taxation, makes it an appealing destination for long-term investment. The Albanian government is keen on maintaining this favorable environment to attract more foreign investors.
With its beautiful landscapes and growing tourism sector, Albania offers not just a tax haven but also a promising market for property appreciation. The combination of low taxes and potential for growth makes it a smart choice for savvy investors.
Sources: Albanian Daily News, Elites Realty Group, Euriskon, Expatax
14) The government is boosting infrastructure, making remote areas easier to reach
The government is pouring resources into infrastructure to make remote areas easier to reach.
In the 2025 budget, 74 billion lek has been earmarked for the Ministry of Infrastructure and Energy. This hefty sum is set to fund major projects in transport, energy, and water supply, all aimed at boosting connectivity. Imagine smoother roads and reliable energy networks making those hard-to-reach spots more accessible.
New road and highway projects are on the horizon, like the Milot-Morinë and Orikum-Dukat roads. These aren't just lines on a map; they're real projects that will make a difference in how easily you can get around. As these roads take shape, expect to see a noticeable improvement in infrastructure.
Foreign investors are also taking note, with €749 million flowing into Albania in the first half of 2024. A big chunk of this is going into infrastructure, showing that there's serious interest and potential for growth. This kind of investment can open up remote areas, making them more attractive for property buyers.
Sources: Altax, Albanian Times, World Bank
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.
15) With a growing middle class, more people are looking for quality homes
Albania's economy is on the rise, with growth rates of 3.3% in 2024 and a slight uptick to 3.4% expected in 2025.
This economic boost is fueled by private consumption, tourism, and construction, all of which are thriving. As more people find jobs in the private sector, wages have jumped by an average of 12.7% over the past year. This means more Albanians are joining the middle class, which naturally leads to a desire for better homes.
The construction industry is booming, thanks to the increased spending and tourism. This boom is a clear sign of the rising demand for quality housing, as people look for modern and comfortable living spaces.
In cities like Tirana, you can see new apartment buildings popping up, catering to this demand. The trend is not just about quantity but also quality, with developers focusing on amenities that appeal to the growing middle class.
Albania's real estate market is becoming more attractive, especially for those looking to invest in a country with a steadily growing economy. The combination of economic growth and a rising middle class is creating a vibrant property market.
For potential buyers, this is an exciting time to consider investing in Albanian real estate, as the country continues to develop and modernize its housing options.
Sources: World Bank, Telegrafi, Expatax
16) You’ll benefit from government incentives if you’re a foreign investor in real estate
The government is actively encouraging foreign investment in real estate by offering attractive incentives.
One major perk is the reduced corporate tax rates for foreign companies in the real estate sector, which helps them boost their profits. This makes investing in the country not just appealing but also financially rewarding.
Foreign investors can also enjoy tax exemptions for up to 10 years and VAT exemptions on importing capital goods. These benefits significantly cut down costs, making it easier to undertake large-scale projects and drawing more international interest to the Albanian real estate market.
The process of buying property has been made simpler for foreigners, with unrestricted ownership of buildings and apartments now possible. This streamlined access, along with government initiatives to promote tourism and real estate, creates a welcoming atmosphere for foreign investors.
These incentives are part of a broader strategy to attract international capital and expertise, aiming to boost the local economy and enhance the real estate landscape.
In this video, we can see that Albania actively provides tax incentives, such as low corporate tax rates and residency options, making it attractive for foreign real estate investors.
17) Albania’s great climate is perfect if you’re after a Mediterranean lifestyle
Albania's climate is a big draw for those craving a Mediterranean lifestyle, with 2,500 to 3,000 hours of sunshine each year.
In 2023, tourism in Albania saw a noticeable uptick, thanks to its stunning Mediterranean coastline and sunny weather. This trend shows that more people are discovering Albania as a perfect spot for beach lovers and sun seekers.
Expatriates are increasingly choosing Albania, attracted by its affordable cost of living and welcoming locals. The real estate market, especially in coastal areas, is thriving as more people are drawn to the country's natural beauty and favorable climate.
Foreign residents often rave about the mild winters and warm summers in Albania's coastal regions, which are perfect for enjoying a laid-back Mediterranean lifestyle. This positive buzz adds to the country's charm as a great place to settle down.
Albania's climate is similar to other Mediterranean hotspots like Greece and Spain, making it an appealing alternative for those seeking sunny skies without the crowds. The country's booming real estate market reflects this growing interest.
With its combination of beautiful weather, friendly communities, and affordable living, Albania is becoming a top choice for those looking to embrace a Mediterranean way of life.
Sources: Climate Change Post, Invest in Albania, UNFCCC
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.