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
What do the latest numbers reveal about Albania’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Albania, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Residential properties in Albania with energy-efficient certifications are rising by 15%
Albania's real estate market is embracing sustainable construction practices more than ever.
In 2023, a survey revealed that interest in green-certified homes surged by 20% among homebuyers. This shift shows that people are increasingly seeking homes that are not just cozy but also kind to the environment.
With this growing interest, the number of residential properties in Albania with energy-efficient certifications is expected to rise by 15% by 2025. This trend is a clear reflection of the broader movement towards sustainability in the Albanian real estate market.
Homebuyers are now prioritizing properties that incorporate eco-friendly materials and technologies, aligning with global trends in sustainable living. This shift is not just a fad; it's a response to the increasing awareness of environmental issues.
Developers are responding to this demand by integrating energy-efficient solutions into new projects, making it easier for buyers to find homes that meet their eco-conscious criteria. This change is reshaping the landscape of the Albanian housing market.
As more people become aware of the benefits of sustainable living, the demand for environmentally responsible homes continues to grow, driving the market towards a greener future.
Sources: Navigating the 2023 Albanian Real Estate Landscape, Energy Efficiency in Buildings, Real Estate Albania 2021
2) Residential property prices in Sarandë are rising 8% annually
In 2023, residential property prices in Sarandë were climbing, with new apartments priced between 1,500 and 2,500 euros per square meter.
Seaside properties were even pricier, reaching up to 3,500 euros per square meter. Compared to 2022, some areas saw a staggering increase of up to 58%.
By 2024, the trend continued with an average price increase of around 12% from the previous year. This makes Sarandë a hot spot for potential buyers.
Looking to the future, the construction of a new international airport in 2025 is expected to further boost property values. This mirrors the property boom seen in Montenegro's Tivat after similar developments.
Investors are particularly drawn to Sarandë due to the high profitability from short-term rentals and promising returns on investment for apartments.
With these factors in play, Sarandë's real estate market is poised for continued growth, making it an attractive option for those considering a property purchase in the region.
Sources: Telegrafi, Politiko, Globihome
Everything you need to know is included in our Real Estate Pack for Albania
3) Property management fees for residential properties in Albania are now 10% of rental income
In 2025, property management services in Albania will likely cost about 10% of rental income.
In Saranda, apartment owners typically earn 8,000 to 10,000 EUR annually from short-term rentals. With management fees ranging from 10% to 30%, owners often see a net profit of around 7,300 EUR each year. This indicates that a 10% fee is both realistic and sustainable, especially for attracting more property owners to these services.
Keeping management costs at 10% allows companies to strike a balance between affordability for owners and their own profitability. This is essential in Saranda's competitive market, where factors like location, view, and finishing standards can greatly influence rental income and management expenses.
In recent years, Saranda has become a hotspot for property investment, with its stunning coastal views and vibrant tourism scene. This has led to a surge in demand for short-term rentals, making efficient property management even more critical.
Property management companies in Saranda are adapting to this demand by offering more competitive services. By maintaining costs at around 10%, they ensure that property owners can maximize their profits while still receiving quality management.
As the market continues to grow, the focus remains on providing value to property owners. This involves not only managing properties efficiently but also enhancing the overall rental experience for tenants.
Sources: GlobiHome
4) An apartment in central Tirana has surged from €90,000 to €130,000 in value
The apartment in central Tirana has jumped from €90,000 to €130,000 in just a year.
This surge is part of a broader trend in the Albanian real estate market, where prices have been climbing steadily. In Tirana, apartment prices have increased by 30%, with central areas like yours seeing even more dramatic hikes. Specifically, central Tirana has experienced a 44.4% rise in property values, perfectly matching the change in your apartment's price.
What's driving these price hikes? Several factors are at play. Rising construction costs, taxes, and wages are pushing property values up. But it's not just about costs; demand is soaring too. Central Tirana is becoming a hot spot, partly because of an influx of foreign capital and the growing role of technology in real estate.
Foreign investors are increasingly eyeing Tirana, attracted by its potential for growth and development. This influx of capital is not just a trend; it's a significant factor in the rising demand for housing. As more people look to invest in the area, property values naturally climb.
Technology is also reshaping the market. From virtual tours to online transactions, the integration of tech is making it easier for buyers and sellers to connect. This tech-driven efficiency is another reason why property values in central Tirana are on the rise.
So, if you're considering buying property in the country, central Tirana is a place to watch. With its rising values and growing demand, it offers a promising investment opportunity.
Sources: Apartment Prices in Tirana Increase by 30% within a Year, Trends Shaping the Albanian Real Estate Market in 2023, Navigating the 2023 Albanian Real Estate Landscape
5) Unsold properties in Albania are dropping steadily since 2016
The number of unsold properties in Albania has been decreasing continuously since 2016.
Albania's real estate market is on the rise, with growth driven by a shift in customer preferences towards urban areas, sustainable living, and luxury homes. This trend is supported by stable economic conditions and low interest rates, alongside government efforts to attract foreign investors.
There's a noticeable increase in demand for residential properties, especially apartments. Many are investing in real estate for rental income or to secure their own homes, influenced by a cultural preference for homeownership and the availability of mortgage financing.
Tourism is booming in Albania, creating a surge in demand for vacation homes and rental properties. This has led to rising prices in the residential real estate market, with foreign investors eager to capitalize on the opportunity.
Sources: Statista, Statista Residential Real Estate, Altax
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6) Over 60% of Albanian real estate agents are selling properties at or near asking price, showing strong buyer demand
Albania's real estate market is buzzing with activity, especially in 2023 and 2024.
In coastal areas and major cities like Tirana, buyer demand has surged, attracting both local and foreign investors. This heightened interest has naturally led to a rise in property prices, making the market more competitive. Even though fewer properties are being sold, those that do sell often go for the asking price or just slightly below.
The competition is fierce, with buyers eager to snap up properties quickly. This urgency is driven by high demand and limited supply, pushing many to agree to prices close to what sellers want. It's a seller's market, and buyers are feeling the pressure to act fast.
Foreign investment is a key player in this scenario. In the first half of 2024, 27% of property sales were made by non-Albanian residents, mainly from the EU. This influx of foreign buyers is not only boosting demand and prices but also contributing to Albania's economic growth.
For those considering buying property in Albania, understanding this dynamic is crucial. The market's current state reflects a blend of local enthusiasm and international interest, creating a vibrant and competitive environment.
Over 60% of real estate agents in Albania have sold properties at the asking price or up to 5% less, indicating high buyer demand.
Sources: Kerko360 Blog, Albanian Daily News, Kerko360 Blog
7) Demand for 1+1 apartments of 50–60 m² is surging due to foreign investor interest
The Albanian real estate market is booming, with foreign investors showing a keen interest in the country's properties.
One of the hottest trends is the demand for 1+1 apartments sized around 50–60 m². These compact living spaces are not just popular among international buyers; they're also catching the eye of young Albanians and those seeking affordable urban living, especially in bustling cities like Tirana.
Albania's appeal lies in its favorable investment climate and government incentives, making it an attractive destination for property investment. The government has rolled out policies that make it easier and more profitable for foreigners to invest, further fueling this trend.
Technology plays a crucial role in this real estate surge. With the rise of online platforms, investors can easily browse and purchase properties from anywhere in the world. This digital convenience has significantly boosted the market for these smaller apartments.
For many, these 1+1 apartments represent a smart investment. They offer a balance of affordability and potential for rental income, making them a lucrative option for both local and international buyers.
As the demand continues to rise, the Albanian real estate market is poised for further growth, driven by the increasing interest in these compact, efficient living spaces.
8) Demand for small, well-organized apartments in Albania is surging after a significant rise last year
The demand for small but well-organized apartments in Albania has increased significantly in the last two years.
In cities like Tirana, there's been a noticeable surge in the housing market as more people seek to invest in real estate. Urban areas are buzzing with opportunities, offering jobs and modern amenities that make city life appealing. This trend is drawing both locals and foreigners, eager to secure a piece of the urban lifestyle.
Foreign investments, especially from Western Europe, are reshaping the market. Investors are eyeing Albania, particularly its coastal regions, bringing in a wave of foreign capital. This influx has driven up real estate sales and prices, pushing many to look for smaller, more affordable apartments.
Albania's economy is on the rise, growing by 4.8% in 2022 and with a forecast of 3.3% growth in 2024. This economic upswing is boosting incomes, which in turn fuels the demand for housing. As city prices climb, the appeal of compact, well-organized living spaces becomes even more pronounced.
With the market heating up, small apartments are becoming a hot commodity. They're not just a budget-friendly option but also a smart investment in a rapidly evolving real estate landscape. The combination of economic growth and urban allure is making these properties highly sought after.
Sources: Aparthotel, Statista
Everything you need to know is included in our Property Pack for Albania
9) The construction sector drives 7% of Albania's GDP, highlighting its crucial role in economic growth
The construction sector is a cornerstone of Albania's economy, contributing 7% to the GDP.
In recent years, particularly 2023 and 2024, the industry has boomed, with a notable surge in hospitality and tourism projects. For example, the value of building permits issued in early 2022 saw a 47% increase from the previous year, reflecting a robust demand for new developments.
This upswing is largely fueled by a growing need for housing, which forms a significant chunk of construction activities. The demand for residential properties is climbing, driven by both local and international interest, which is also pushing up property prices.
Financial institutions are playing a crucial role in this growth by offering mortgage loans and funding for construction projects. This is especially true for projects tied to tourism, another vital sector in Albania's economy.
Sources: Intesa Sanpaolo Bank Albania, OECD iLibrary
10) Property sales per respondent surged to 6.7 in early 2023, according to the Bank of Albania survey
The average number of properties sold per respondent in the Bank of Albania survey increased to 6.7 in the first half of 2023.
This rise from 5 in the previous half-year indicates that each respondent, including construction companies and real estate agencies, sold more properties. The total number of properties sold during this period was 1,150, marking a 23% increase from the previous half-year, which shows a lively real estate market with strong demand.
Interestingly, over 60% of agents managed to sell properties at the same price or up to 5% less than the asking price, highlighting high demand from buyers. Additionally, about 40% of the properties sold were financed with bank loans, with 85% of these loans covering up to 60% of the property's value.
The Fischer index from the Bank of Albania highlighted that the average price of houses sold increased by 11.6% compared to the previous six months. Rental prices also saw an uptick, reflecting a positive trend in the market.
Sources: Albanian Daily News, Telegrafi
11) Apartment sales in Albania's coastal and other areas are taking longer than before
The average time to sell apartments in coastal cities and other areas of Albania has increased compared to the previous period.
In recent times, property prices in Albania's coastal cities like Durrës, Vlorë, and Saranda have surged. This spike is largely due to growing tourism and investment interests, making these areas more appealing yet pricier. As a result, potential buyers are finding it harder to afford properties, especially smaller units like 1+1 apartments.
With prices climbing, the demand for smaller apartments has dropped. Many buyers are hesitant or unable to commit to these high prices, leading to a slower sales process. This situation is often referred to as a "flluskë," or market bubble, suggesting that the rapid price increase might not be sustainable in the long run.
In coastal cities, the allure of beautiful beaches and vibrant culture has attracted both local and international interest. However, the elevated property prices have made it challenging for many to invest, causing a noticeable slowdown in sales. This trend is particularly evident in popular tourist destinations where the market is feeling the pressure of high demand and limited supply.
While the market remains attractive for investors, the current conditions have created a unique challenge for those looking to buy. The combination of high prices and reduced demand for smaller units has resulted in longer selling times for properties. This shift is reshaping the real estate landscape in Albania's coastal regions.
For potential buyers, understanding these dynamics is crucial. The current market conditions highlight the importance of careful consideration and strategic planning when investing in Albanian real estate. As the market continues to evolve, staying informed will be key to making sound investment decisions.
Sources: Gazeta Shqip, Kerko360
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12) Albania's unsold properties have consistently increased since 2016
The Albanian property market has been on a unique journey since 2016, with a consistent surplus of unsold properties.
In Tirana, the number of vacant apartments has skyrocketed. Back in 2015, there were about 8,000 empty units, but by 2024, this figure had ballooned to 40,000 vacant apartments. This surge is mainly due to the rapid issuance of construction permits, which has far outpaced the actual demand for housing, leading to an oversupply.
The real estate market in Albania is booming, attracting both local and international investors. However, this growth is not without its challenges. Issues like opaque financial transactions and delayed construction projects have created uncertainty among investors, contributing to the pile-up of unsold properties.
Despite the challenges, the market's expansion is undeniable. The influx of investment has been significant, yet the complications in the market have left many properties lingering without buyers. This situation is a double-edged sword, offering opportunities for potential buyers but also posing risks.
For those considering buying property in Albania, it's crucial to understand these dynamics. The market's rapid growth, coupled with its challenges, means that there are opportunities for savvy investors who can navigate the complexities.
Understanding the local market conditions, including the reasons behind the surplus of unsold properties, is essential for making informed decisions. The ongoing issues with construction and financial transparency are key factors to consider.
Sources: Magic Towns, Statista Residential Real Estate, Statista Real Estate
13) Tirana's real estate prices are surging, up 13.3% from last period
The price index for sales in Tirana has jumped by 13.3% compared to the previous period.
This surge is mainly because property prices in the city's central areas are climbing. These bustling central spots made up about 46% of all sales volume during this time, showing just how much people want to live there. The average price of apartments in central Tirana shot up by 29%, which played a big part in pushing the price index higher.
Backing up this trend, the Bank of Albania notes that central areas, including some coastal cities, are seeing the highest reported prices. Meanwhile, other areas haven't seen much change, staying relatively stable.
For anyone considering buying property in Tirana, it's clear that the central areas are where the action is. The demand is strong, and prices are reflecting that. If you're looking at these areas, be prepared for the higher costs that come with the territory.
Whether you're drawn to the vibrant city life or the allure of coastal living, the central areas are proving to be the hot spots. The data shows that these locations are not just popular but also commanding top dollar.
Sources: Bold News Albania, Bank of Albania
14) The average property transfer fee in Albania is staying steady at 3%
In Albania, the average property transfer fee is expected to remain steady at 3% in 2025.
In 2023 and 2024, several factors shaped Albania's property transfer fees. The Ministry of Finance and the State Cadaster Agency issued guidelines on capital gains tax for real estate transactions. This included a 15% personal income tax for non-tax-registered individuals on capital gains from property transfers.
For those involved in real estate sales as part of their business, a local real estate transfer tax applied. This tax, outlined in Law No. 9632/2006 “On Local Taxes System,” had to be paid before registering the property. It was calculated based on the area of the property being transferred.
There were also exemptions for property transfers within families. Transfers under a Donation/Gift Contract were tax-free, but only if the property was donated between family members, such as between spouses or parents and children.
These regulations aimed to streamline the process and ensure clarity for property buyers and sellers. The focus was on maintaining a consistent and predictable tax environment for real estate transactions.
As a result, the property market in Albania remained attractive to potential buyers, with the 3% transfer fee providing stability in an otherwise fluctuating market.
Sources: Tax Natives, HG.org, INA Media
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.