Buying real estate in Albania?

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16 strong trends for 2025 in the Albania property market

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Authored by the expert who managed and guided the team behind the Albania Property Pack

buying property foreigner Albania

Everything you need to know before buying real estate is included in our Albania Property Pack

What is happening in Albania’s real estate market? Are prices on the rise or decline? Is Tirana still attracting foreign investors? How are Albania’s government policies and taxes shaping the real estate landscape in 2025?

These are the questions we hear every day from professionals, buyers, and sellers across the country, from Tirana to Saranda and beyond. Maybe you’re curious about these trends too.

We know this because we stay closely connected with local experts and individuals like you, exploring the Albanian real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

How this content was created 🔎📝

At Investropa, we study the Albanian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tirana, Durrës, and Vlorë. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These trends are originally based on what we’ve learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources, like the World Bank, Statista, and the United Nations (among many others).

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded. For the "trends" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make forecasts accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Foreign buyers will increase property prices in popular Albanian tourist spots

In 2023 and 2024, foreign buyers have been snapping up properties in Albania.

Most of these buyers are from the European Union, and their interest has nearly doubled, with 27% of properties bought by non-Albanian residents in the first half of 2024. This is a big leap from previous years, where it was just 13% in 2022 and 14% in 2023. The Albanian real estate market is buzzing, with foreign investments hitting 292 million euros in 2022, a 52% jump from the year before.

Tourism is a major player in this boom. International visitors are spending more, with a projected 55% increase in spending compared to 2019. This surge in tourism is pushing up demand for real estate, especially in those stunning coastal areas that tourists love. As a result, property prices in these hotspots are climbing fast.

Foreign direct investments in real estate are significant, making up 21% of all foreign investments in the country. This shows just how crucial the real estate sector is to Albania's economy. The influx of foreign buyers is expected to continue driving up property prices, particularly in popular tourist destinations.

For those considering buying property in Albania, it's worth noting that the market is becoming increasingly competitive. The combination of rising tourism and foreign interest is creating a dynamic environment where property values are on the rise.

Sources: IEA, WTTC, Euriskon

2) Rental yields in Tirana will rise with growing demand for city living

Rental yields in Tirana are on the rise as more people flock to the city for urban living.

Over the past five years, rental prices in Tirana have surged by up to 58% in certain areas, showing just how strong the demand for rental properties is. This trend is largely driven by the city's growing appeal, with more people choosing to live in urban settings.

Albania's urbanization is a big part of this story. As cities like Tirana expand, the need for housing naturally increases. In 2024, Tirana's population grew by 1.54% compared to the previous year, adding more fuel to the rental market's fire.

Central neighborhoods such as Ex-Block and Stadium “Air Albania” are particularly hot right now. Rental prices in these areas have shot up, reflecting their popularity among both locals and newcomers. The influx of expatriates and digital nomads, drawn by Tirana's affordable living and solid internet, is also boosting demand.

These newcomers are not just passing through; they're setting up shop, which means more long-term rental agreements and a steady stream of income for property owners. The city's vibrant culture and strategic location make it a magnet for those seeking a dynamic lifestyle.

With all these factors in play, it's no wonder that investors are eyeing Tirana's rental market as a promising opportunity. The combination of rising demand and limited supply is creating a perfect storm for rental yield growth.

Sources: Macrotrends, Altax, Local Nomads

statistics infographics real estate market Albania

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) Rents in Tirana will rise as the city attracts more young professionals

Rents in Tirana are climbing as the city draws in more young professionals.

In recent years, rental demand has surged, especially in central areas, with 1+1 apartments seeing a 61% rent hike and 2+1 apartments a 45% increase. This is largely because Tirana is becoming a cultural and educational hotspot, attracting a wave of young talent.

The city's tech and startup scene is booming, making tech-savvy, energy-efficient apartments highly sought after. Young professionals are flocking to these modern spaces, driving up demand and prices.

New business districts and co-working spaces are popping up, adding to Tirana's allure. This development is not just about aesthetics; it's about creating a vibrant environment that boosts property values and rental prices.

Urban infrastructure is getting a facelift, with better public transportation making the city more accessible. These improvements are making Tirana even more attractive, increasing housing demand and pushing property prices higher.

As Tirana continues to evolve, its appeal to young professionals is only set to grow, ensuring that rental prices will keep rising in the foreseeable future.

Source: Altax

4) Rural property prices will drop as people keep moving to cities

People in Albania are increasingly moving from the countryside to the cities, seeking better job opportunities.

In 2024, the net migration rate in Albania was -4.699 per 1,000 people, indicating a significant shift from rural to urban areas. This trend is fueled by the government's efforts to enhance labor migration policies, making cities more appealing for those looking for work.

The Albanian government is heavily investing in urban infrastructure, which means rural areas are missing out on development. This lack of investment makes the countryside less attractive for both residents and businesses, especially as younger people prefer city life for its educational and service advantages.

Real estate experts note a decline in demand for rural properties, which is not surprising given the urban migration trend. This reduced interest is expected to cause a drop in property prices in some rural regions.

For those considering buying property in the countryside, it's important to know that urban migration is likely to continue, potentially affecting property values. The focus on city development means rural areas might not see significant growth or investment anytime soon.

Sources: Macrotrends, Migration Network, Trading Economics

6) Albania's luxury real estate prices will surge due to strong foreign interest

The luxury real estate market in Albania is booming, thanks to increased foreign interest.

In early 2024, foreign investments in Albanian real estate hit 84 million euros, a remarkable 71% jump from the previous year. This isn't just a blip; it's part of a larger trend. By the end of the first quarter of 2024, the total foreign investment in Albania's real estate market had climbed to 1.66 billion euros, up 41% from 2023.

What's driving this growth? Major cities like Tirana and coastal gems such as Durrës, Vlora, and Saranda are seeing a rise in luxury property developments. These spots are hot because of their modern apartments, private villas, and high-end complexes. Plus, Albania's tourism sector is booming, with more foreign visitors contributing over 8% to the GDP.

Albania is catching the eye of high-net-worth individuals as an emerging luxury destination. Its growing economy and tourism industry are big draws. And let's not forget, luxury properties here are cheaper than in many other European countries, making it a sweet deal for foreign investors.

Local developers are teaming up with international real estate agencies to put Albania on the map as a luxury real estate hotspot. This collaboration is key in promoting the country as a prime investment location.

Sources: ABNASE, Euriskon, Kerko360

6) Foreign investors will target Albania's luxury real estate market more aggressively

Foreign investors are eyeing Albania's luxury real estate market for some pretty compelling reasons.

Albania's property prices are set to climb in 2025, thanks to economic growth and more foreign investment. This rise, expected to be between 3% and 7% of 2024 values, makes now a smart time to invest.

In the first nine months of 2024, foreign direct investment in Albania hit €1.1 billion, with real estate being a major player. Real estate snagged a 20% share of these investments, with foreign buyers snapping up 27% of homes, especially in Tirana and along the coast.

The Albanian government is rolling out the red carpet for foreign investors with tax breaks and easier property ownership rules for non-residents. These moves are making the real estate market more accessible and attractive to international buyers.

In Tirana, the capital, and coastal hotspots, foreign interest is booming. International investors are particularly drawn to these areas for their potential returns and lifestyle appeal.

With these factors in play, it's no wonder that Albania is becoming a hotspot for luxury real estate investment. The combination of rising prices, government incentives, and a growing economy is creating a perfect storm for savvy investors.

Sources: Statista, Albanian Times

7) Urban migration will rise reducing property demand in rural Albania

In Albania, more people are moving to cities than ever before.

In 2023, the urban population reached 1,773,980, a clear sign that city life is becoming more attractive. Meanwhile, the countryside is seeing a decline, with the rural population dropping by 3.34% from the previous year, now standing at 971,992. This shift is not just about numbers; it's about where people see their future.

Why are people flocking to the cities? It's all about job opportunities and economic growth. Urban centers are buzzing with activity, offering more jobs and better wages. In 2024, Albania's economy grew by 3.3%, thanks to sectors like private consumption, tourism, and construction. This growth is expected to tick up slightly to 3.4% in 2025, making cities even more appealing.

For those considering buying property in the countryside, this trend could mean less competition and potentially lower prices. However, it's essential to weigh the benefits of rural tranquility against the vibrant opportunities in urban areas. The countryside offers peace and space, but the cities promise excitement and growth.

Insider tip: If you're eyeing a rural property, consider the long-term potential. As more people move to cities, rural areas might develop unique niches, like eco-tourism or organic farming, which could become lucrative. But remember, the current trend is clear: urban migration is shaping the future of property demand.

Sources: Macrotrends, World Bank, Trading Economics

8) Short-term rental regulations will tighten and disrupt the rental market

The Albanian government is cracking down on short-term rentals, introducing a new tax to regulate the market.

Initially, the tax was set at 20 euros per bed annually, but there's talk of increasing it to 50 euros per bed soon. This is part of a broader effort to formalize the tourism sector and boost government revenue. Locals in Tirana are feeling the pinch, as the city faces a housing crisis with sky-high apartment prices and rents that are out of reach for many young families.

In popular tourist spots like Vlorë, the number of short-term rental listings has exploded. There was a 77% increase in available apartments for rent in the third quarter of 2022 compared to 2019. This boom is squeezing out long-term residents, who are struggling to find affordable housing. In Tirana, many locals are unhappy with the current rental conditions, which are exacerbated by the influx of short-term rentals.

Media outlets are shining a light on how these rentals are affecting local communities, particularly by driving up housing prices and creating shortages. This increased public awareness is paving the way for stricter regulations. Studies have shown that there's a link between the rise of short-term rentals and increasing property prices, which is adding fuel to the fire for those demanding tighter controls.

Residents are increasingly vocal about the noise and disturbances caused by these rentals, adding pressure on the government to act. The situation in Tirana is a clear example of how short-term rentals are impacting the local housing market, making it difficult for long-term residents to find suitable living conditions. As the demand for stricter regulations grows, it's likely that the government will continue to tighten the rules around short-term rentals.

Sources: Kerko360, Citizens.al, Skift

infographics comparison property prices Albania

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) Gjirokastër's property demand will surge as it transforms into a cultural and historical tourism hub

Gjirokastër is quickly becoming a hotspot for cultural and historical tourism, driving up property demand.

In 2023, Gjirokastra Castle emerged as the most visited site in Albania, thanks to a significant increase in visitors to cultural institutions. This trend is expected to continue, especially with the city's prestigious UNESCO World Heritage status.

Major investments have been made to boost the city's appeal. The Project for Integrated Urban and Tourism Development (PIUTD) poured €63.8 million into enhancing tourism assets and upgrading urban infrastructure in Gjirokastër, making it more attractive to tourists and property investors alike.

The Albanian government is actively promoting cultural tourism, which has further piqued interest in Gjirokastër. This effort, along with increased media coverage of the city's historical significance, has drawn more tourists and potential property buyers.

Improved transportation links, including new international flights, have made it easier for tourists to visit, contributing to the rising demand for property in the area.

With these developments, Gjirokastër is poised to become a prime location for those looking to invest in property, as it transforms into a cultural and historical tourism hub.

Sources: Politiko, Invest in Albania, Albanian Development Fund, China-CEE Institute

10) Vlorë's property market will boom as it becomes a top tourist destination

Vlorë, a charming coastal city in Albania, is quickly becoming a favorite among tourists, sparking a surge in property interest.

In 2023, Albania welcomed 10.1 million international visitors, a remarkable 35% jump from the previous year. This upward trend continued into 2024, with a 7.2% increase in foreign tourists just in August. The Albanian Riviera, home to Vlorë, saw a 30% year-on-year rise in visitors, thanks to better transport links making it more accessible.

To keep up with this tourism boom, Albania is pouring money into local infrastructure. A major project is the £88 million Vlora International Airport near Vlorë, set to cut travel time to the coast significantly. Direct flights to Vlorë are expected to start in mid-2024, boosting the area's appeal for tourists and real estate investors alike.

Vlorë's allure is also getting a boost from media coverage, with travel blogs and outlets calling it a "hidden Mediterranean gem." Beachfront properties here are priced at 70% below regional averages, catching the eye of travelers and investors. The Albanian government is sweetening the deal with pro-investment policies for foreign buyers, making it easier to purchase real estate.

New hotels and resorts are popping up, showing increased investment in tourism, which is likely to draw even more visitors and heighten property interest in Vlorë. The combination of natural beauty, affordability, and improved access is making Vlorë a hot spot for those looking to invest in property.

Sources: Travel and Tour World, Mighty Travels, Albanian Daily News

11) Lake Ohrid's natural beauty and recreation will draw more investors

The area around Lake Ohrid is becoming a hotspot for investors due to its stunning natural beauty and abundant recreational opportunities.

In 2023, Albania experienced a tourism boom, welcoming 2.4 million visitors in just the first five months, a remarkable 41% increase from the previous year. This surge is part of a larger trend, with the entire Balkan region expected to attract over 12 million international tourists by 2025.

Government efforts are a big part of this growth story. The Albanian government, alongside the EU, is backing UNESCO's project to sustainably develop the Lake Ohrid region. This includes plans to extend World Heritage status to the Albanian side of the lake, showing a strong commitment to preserving its natural allure and making it even more enticing for tourists and investors.

Infrastructure and amenities are also getting a boost, making the area even more appealing. Projects like the Via Dinarica hiking trail are promoting eco-tourism and rural development, which is a win-win for both tourists and investors. The region is buzzing with activities like rowing and cultural events, adding to the vibrant tourist scene around Lake Ohrid.

For those considering property investment, the area offers a unique blend of natural beauty and modern conveniences. The ongoing development projects are not just about tourism; they are about creating a sustainable environment that attracts long-term investment. This makes Lake Ohrid a prime location for future growth.

With its rich history, cultural significance, and growing infrastructure, Lake Ohrid is poised to become a major player in the real estate market. Investors are taking note of the region's potential for high returns, driven by its increasing popularity and strategic development plans.

Sources: Travel and Tour World, UNESCO, 2 Suitcases for 2 Years

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12) Property interest in Durrës will plummet due to rising coastal erosion concerns

Durrës is grappling with serious coastal erosion issues.

The Albanian coastline, including Durrës, is seeing 154 kilometers of its 427-kilometer stretch erode. In Durrës, the heart of Durrës Bay is hit hard, with the sea creeping into prime tourist spots.

Environmental reports point fingers at climate change and unchecked urban growth for speeding up this erosion. Some places are losing up to 30 meters of coastline annually, which is a red flag for property owners and those eyeing investments.

Media outlets are buzzing about the risks of buying coastal properties in Durrës. This chatter is making property owners and potential buyers more cautious, leading to less interest in coastal real estate. Experts predict that erosion will eventually take a toll on property values.

Sources: Phys.org, Climate Change Post, Politiko

13) Infrastructure projects boost suburban areas' appeal for residential investment

Albania's suburban areas are becoming hot spots for residential investment thanks to major infrastructure projects.

By 2025, the Albanian government is pouring 1.6 billion euros into infrastructure, focusing on projects like the Tirana-Durres highway expansion and Corridor 8 development. These efforts aim to make commuting between suburbs and city centers a breeze, offering a perfect blend of tranquility and urban access.

With the expansion of the Tirana-Durres and Elbasan-Qafë Thane highways, connectivity between suburbs and cities will significantly improve. This means you can enjoy a peaceful suburban life without sacrificing the convenience of city amenities. Plus, the development of rail transport along Corridor VIII is set to further enhance regional connectivity.

Real estate trends are showing a 30% increase in suburban property inquiries for 2024. This growing interest is fueled by better infrastructure and amenities, making suburban living more appealing. As these projects advance, expect suburban property values to climb, attracting more residential investors.

The new Kashar-Thumana segment of the Blue Corridor has already cut down commute times, making suburbs more enticing for city workers seeking quieter living spaces. The government's commitment to infrastructure, including plans for a new port in Porto Romano, indicates a strong focus on boosting suburban appeal.

Sources: Euronews Albania, Telegrafi, LIM-EM, Albanian Daily News

14) Eco-friendly homes will become popular as environmental awareness increases

Eco-friendly homes are gaining traction as environmental awareness grows.

In Albania, there's been a noticeable uptick in the construction of eco-friendly homes, especially in 2023 and 2024. Companies like Eco Buildings Group PLC are landing big contracts, showing a strong demand for sustainable housing. This trend is not just about building homes; it's about creating a lifestyle that aligns with nature.

Albania is stepping up its game by planning to enforce zero-emission standards and mandate solar panels on all new and renovated buildings by 2026. This initiative is set to increase the demand for sustainable building materials, making eco-friendly homes more attractive and within reach for many.

People's tastes are changing too. More and more, buyers are looking for homes that offer green surroundings and a laid-back lifestyle. This shift in preference is expected to keep pushing the popularity of eco-friendly homes upward.

The Albanian government is backing this movement by drafting laws that require new buildings to meet energy performance standards and incorporate renewable energy. These efforts are in line with global climate goals and are helping to promote sustainability in the construction industry.

With these changes, eco-friendly homes are not just a trend but a growing part of the real estate market. As more people become aware of the benefits, the demand for these homes is likely to rise, making them a smart choice for future homeowners.

Sources: Morningstar, Balkan Green Energy News, LIM-EM

infographics map property prices Albania

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) Korçë's mountains will become a hotspot for eco-tourism and sustainable living

The mountainous region of Korçë is becoming a hotspot for eco-tourism and sustainable living.

Thanks to a boost in eco-tourism infrastructure, more people are discovering Korçë's natural charm. In 2024, the Albanian Ministry of Tourism and Environment poured resources into nature tourism projects, like eco-parks and multifunctional centers. This investment is part of a broader effort to make Albania a go-to destination for nature lovers.

Tourist numbers are climbing, with nearly 5 million people visiting Albania's protected areas in 2024. This uptick shows a growing interest in places like Korçë, which is celebrated for its stunning landscapes and eco-friendly attractions. The government's National Tourism Strategy 2024-2030 is backing this trend, focusing on sustainable growth and better tourism practices.

Korçë is also seeing a rise in eco-friendly accommodations, with 21 options available as of 2023. These places offer sustainable amenities like solar heating and greenwater systems, meeting the needs of eco-conscious travelers. The buzz around Korçë is growing, thanks to media coverage and social media, which highlight its appeal as a fresh eco-tourism spot.

For those considering a property investment, Korçë offers a unique opportunity. The region's commitment to sustainability and eco-tourism is not just a trend but a long-term vision. This makes it an attractive option for anyone looking to invest in a place that values the environment and offers a peaceful lifestyle.

With its blend of natural beauty and sustainable living, Korçë is poised to become a favorite for those seeking a greener way of life. The region's focus on eco-friendly development is drawing attention from both tourists and potential property buyers, making it a promising area for future growth.

Sources: Eco-Tourism Gains Popularity in Albania, Albania unveils National Tourism Strategy 2024-2030, 5 Best Korca Hotels near the Old Bazaar and Cathedral, Eco Cottages and Sustainable Rentals in Korce | Vacation Cottages

16) Smart home technology will be a crucial selling point for new properties in Albania

Smart home technology is becoming a major selling point for new properties.

In Albania, the market for smart appliances is set to grow by 12.36% from 2024 to 2029, reaching a value of $6.4 million. This shows a strong interest in smart home features among buyers. Imagine walking into a home where you can control the lights, temperature, and security with just your phone. This is the future that many are looking forward to, and it's becoming more accessible every year.

By 2024, there were already 119,010 smart home device users in Albania. This means a good chunk of the population is already on board with smart technology. For potential buyers, this could mean that homes equipped with these features are more attractive. It's not just a local trend; globally, the smart home market is expected to grow from $84.5 billion in 2024 to $116.4 billion by 2029.

Interestingly, while over 70% of people know about smart home tech, not as many are using it yet. This gap is a golden opportunity for new properties to shine by offering built-in smart solutions. In Europe and North America, homes with smart technology are becoming the norm, with many households already owning at least one smart device.

For those considering buying property, it's worth noting that smart home features can add significant value. Imagine being able to adjust your home's settings from anywhere in the world. This convenience is becoming a standard expectation, especially among younger buyers who are tech-savvy and value efficiency.

As the demand for smart homes grows, properties that offer these features are likely to see increased interest. It's not just about convenience; it's also about future-proofing your investment. With technology advancing rapidly, having a home that's equipped to handle these changes is a smart move.

Sources: MarketsandMarkets, Statista, LightNOW, Start.io

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.