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
This blog post gives you all the data you need to understand rental yields in Albania as of early 2026.
We constantly update this article, so the numbers here are as fresh as possible.
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 average gross rental yield sits around 5.8% in early 2026, but coastal properties swing between 3.5% and 8% depending on how you handle the winter vacancy gap.
- Tirana neighborhoods like Astir and Laprakë deliver yields up to 7.5% gross, while prime areas like Blloku compress to 3.5% to 5% because prices have risen faster than rents.
- The gap between gross and net yields in Albania is typically 1.5 to 2 percentage points, mostly eaten by a 15% income tax and seasonal vacancy risk.
- Studios and one-bedroom apartments consistently outperform larger units, often hitting 6% to 8% gross in value neighborhoods with strong renter demand.
- Vlora's new international airport, launching flights in summer 2026, is expected to push rents up in Lungomare and Uji i Ftohtë by creating year-round demand.
- Vacancy rates in Albania's coastal markets can reach 15% to 33% annualized without a winter tenant strategy, compared to just 4% to 6% in central Tirana.
- Albania's nationwide apartment price has reached around 1,620 euros per square meter, among Europe's fastest-growing, putting downward pressure on yields.
- The Tirana to Durrës rail corridor, backed by a 30 million euro EBRD investment, could lift rents in commuter-friendly micro-areas as connectivity improves.
What are the rental yields in Albania as of 2026?
What's the average gross rental yield in Albania as of 2026?
As of early 2026, the average gross rental yield in Albania is around 5.8%, reflecting a market where prices have risen sharply but rents remain supported by urbanization and tourism.
The realistic range spans from about 4.5% to 7.5% gross, depending on whether you buy in a prime Tirana neighborhood or a value-oriented coastal area.
Compared to other European markets, Albania's yields remain attractive and sit above many Western European capitals, though they have compressed as prices climbed faster than rents.
The biggest factor shaping gross yields right now is rapid price growth, averaging around 1,620 euros per square meter nationwide according to Deloitte-cited figures, meaning yields only stay healthy if rents keep up.
What's the average net rental yield in Albania as of 2026?
As of early 2026, the average net rental yield in Albania is around 4.2%, which is what most buy-to-let investors can realistically expect after taxes, fees, and operating costs.
The typical gap between gross and net yields runs about 1.5 to 2 percentage points, reflecting the country's tax structure and practical landlord costs.
The expense that most reduces gross yield is the 15% income tax on rental earnings, which alone can shave nearly a full percentage point off your return.
The realistic range of net yields for most investment properties falls between 3% and 6%, with the higher end achievable only if you minimize vacancy and manage costs tightly.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in 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.
What yield is considered "good" in Albania in 2026?
In Albania's rental market in 2026, a gross yield of around 5% or higher is considered "good" by local investors, meaning you beat the nationwide average and earn enough to cover costs.
The threshold separating average from high-performing properties sits around 7% gross, and properties hitting this mark usually trade location prestige for stronger cash flow, such as Astir or Laprakë rather than Blloku.
How much do yields vary by neighborhood in Albania as of 2026?
As of early 2026, the spread between highest-yield and lowest-yield neighborhoods can reach 2 to 4 percentage points, meaning your location choice matters as much as the property itself.
The highest-yield neighborhoods are value areas with strong demand but affordable prices, such as Astir, Yzberisht, Laprakë, Ali Demi, and Don Bosko in Tirana, or Spitallë in Durrës, where yields often range from 5.5% to 7.5%.
The lowest-yield neighborhoods are prime areas where prices outpaced rents, such as Blloku, Liqeni Artificial, and Pazari i Ri in Tirana, or Lungomare in Vlora, where yields compress to 3.5% to 5%.
Yields vary because prices in prestigious areas surged on lifestyle appeal and appreciation expectations, while rents have not risen at the same pace.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Albania.
How much do yields vary by property type in Albania as of 2026?
As of early 2026, gross yields range from about 3.5% for houses and villas up to 8% for well-located studios and one-bedroom apartments.
Studios and one-bedroom apartments deliver the highest yields, attracting the deepest tenant pool and often achieving 6% to 8% in good-value neighborhoods.
Houses and villas deliver the lowest yields, often 3.5% to 6%, because their higher prices are not matched by proportionally higher rents unless they serve a niche market.
Yields differ because smaller units generate more rent per euro invested since they cost less to buy but can charge nearly as much monthly.
By the way, you might want to read the following:
What's the typical vacancy rate in Albania as of 2026?
As of early 2026, the typical residential vacancy rate in Albania averages around 7% nationwide, though this masks variation between stable urban centers and tourism-dependent coastal areas.
Vacancy ranges from about 4% to 6% in well-located Tirana areas, up to 15% to 33% in coastal markets like Vlora and Sarandë where winter occupancy drops sharply.
The main driver is tourism seasonality, which supercharges summer demand but leaves many coastal units empty from October through May.
Albania's vacancy rate is moderate overall, but coastal markets pull the average up because of the pronounced off-season gap.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Albania.
What's the rent-to-price ratio in Albania as of 2026?
As of early 2026, the average rent-to-price ratio in Albania sits at approximately 0.48% monthly, translating directly to the roughly 5.8% annual gross yield.
A ratio above 0.5% monthly (about 6% annually) is considered favorable for buy-to-let investors because it suggests the property generates enough income to cover expenses and deliver meaningful returns.
Compared to Southeast Europe, Albania's ratio remains competitive, offering better returns than Zagreb or Ljubljana while reflecting the rapid price appreciation that compressed yields.
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 neighborhoods and micro-areas in Albania give the best yields as of 2026?
Where are the highest-yield areas in Albania as of 2026?
As of early 2026, the top highest-yield neighborhoods are Astir and Yzberisht in Tirana, Spitallë in Durrës, and back-street areas behind Lungomare in Vlora, combining affordable prices with solid renter demand.
In these areas, gross yields range from about 5.5% to 8%, with the higher end in Spitallë and inland Vlora where prices haven't caught up to coastal premiums.
These high-yield neighborhoods share a common trait: they serve working-class or value-seeking tenants needing affordable housing near employment centers, without commanding premium prices.
You'll find a much more detailed analysis of high-profitability areas in our property pack covering the real estate market in Albania.
Where are the lowest-yield areas in Albania as of 2026?
As of early 2026, the lowest-yield neighborhoods are Blloku and Liqeni Artificial in Tirana, and Lungomare seafront in Vlora, where lifestyle appeal has pushed prices ahead of achievable rents.
In these areas, gross yields typically range from 3.5% to 5%, making it difficult to generate positive cash flow after taxes, fees, and vacancy.
Yields are compressed because buyers pay a significant premium for prestige, views, and walkability, but rents don't scale proportionally since tenants have cheaper alternatives.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Albania.
Which areas have the lowest vacancy in Albania as of 2026?
As of early 2026, the lowest-vacancy neighborhoods are Blloku, Komuna e Parisit, and 21 Dhjetori in Tirana, where year-round employment and urban amenities keep demand consistently strong.
Vacancy in these areas typically ranges from 4% to 6%, meaning landlords can expect units to sit empty for only two to three weeks per year.
The main demand driver is the concentration of jobs, services, and amenities that attract young professionals, students, and families needing stable, long-term housing regardless of season.
The trade-off is that the same demand stability that minimizes vacancy also drives up prices, compressing yields and requiring you to accept lower cash flow for predictable occupancy.
Which areas have the most renter demand in Albania right now?
The neighborhoods with strongest renter demand are Blloku for young professionals, Komuna e Parisit for families, and 21 Dhjetori for value-seeking tenants wanting accessibility without premium prices.
Demand is driven by young professionals in Tirana's service and tech sectors, university students, and middle-income families seeking modern apartments close to schools and transit.
In these neighborhoods, rental listings typically get filled within one to three weeks, with well-priced units receiving multiple inquiries within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Albania.
Which upcoming projects could boost rents and rental yields in Albania as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents are the Vlora International Airport opening summer 2026, the EBRD-backed Tirana to Durrës rail upgrades, and the Durrës waterfront redevelopment.
Neighborhoods likely to benefit include Lungomare and Uji i Ftohtë in Vlora for the airport, commuter micro-areas along the Tirana to Durrës corridor, and central Durrës waterfront zones.
Investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods, though some appreciation may already be priced into current values.
You'll find our latest property market analysis about Albania here.
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What property type should I buy for renting in Albania as of 2026?
Between studios and larger units in Albania, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments perform better than larger units in both yield and occupancy, making them the default choice for cash-flow-focused investors.
Studios typically yield 6% to 8% gross (350 to 500 euros monthly, or 380 to 540 US dollars), while two or three-bedroom apartments yield 4.5% to 6.5% (450 to 700 euros, or 490 to 760 US dollars).
Smaller units outperform because they attract the largest tenant pool while costing less to purchase, so rent per euro invested is simply higher.
Larger units can be better if targeting families or expat executives willing to sign longer leases, reducing turnover costs and providing stable income at a lower headline yield.
What property types are in most demand in Albania as of 2026?
As of early 2026, the most in-demand property type is the modern apartment with elevator, parking where possible, and turnkey finish, appealing to both long-term tenants and short-stay guests.
The top three property types by tenant demand are one-bedroom modern apartments, two-bedroom family apartments, and well-furnished studios.
The primary trend driving this demand is urbanization into Tirana combined with a growing young professional class valuing convenience and modern amenities over large living spaces.
The underperforming property type is the older socialist-era apartment without elevator or modern renovation, which struggles on rent and sits vacant longer.
What unit size has the best yield per m² in Albania as of 2026?
As of early 2026, the optimal unit size for gross rental yield per square meter is between 30 and 50 square meters, meaning studios and compact one-bedrooms.
The typical yield per square meter for this size is around 8 to 12 euros monthly (9 to 13 US dollars), translating to annual rent of approximately 100 to 140 euros per square meter.
Smaller or larger units have lower yield per square meter because very small units can be hard to rent, while larger units spread rent over more space without proportional price increases.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Albania.
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.
What costs cut my net yield in Albania as of 2026?
What are typical property taxes and recurring local fees in Albania as of 2026?
As of early 2026, annual property tax for a typical rental apartment in Albania ranges from about 50 to 200 euros (55 to 220 US dollars), depending on municipality and assessed value.
Other recurring fees include municipal waste and cleaning fees, adding another 20 to 60 euros annually (22 to 65 US dollars) in Tirana, with smaller municipalities charging less.
Combined, these taxes and fees typically represent 1% to 3% of gross rental income, lighter than Western European markets but still a real cost cutting into net yield.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Albania.
What insurance, maintenance, and annual repair costs should landlords budget in Albania right now?
Annual landlord insurance in Albania is relatively low, usually 50 to 150 euros (55 to 165 US dollars), covering basic property damage and liability.
The recommended maintenance and repair budget is 0.8% to 1.5% of property value, meaning 800 to 1,500 euros yearly (870 to 1,630 US dollars) for a 100,000 euro apartment.
The expense that most commonly catches landlords off guard is contributions to building-wide improvements like elevator repairs, facade work, or plumbing upgrades, arriving as unexpected lump-sum assessments.
Total, landlords should budget about 1,000 to 2,000 euros annually (1,090 to 2,180 US dollars) for insurance, maintenance, and repair contingency.
Which utilities do landlords typically pay, and what do they cost in Albania right now?
In Albania, landlords of long-term rentals typically let tenants pay electricity and water directly, while covering building common-area charges and sometimes internet for furnished units.
When landlords cover utilities for furnished units, monthly cost ranges from 30 to 80 euros (33 to 87 US dollars), which can reduce net yield by 0.3 to 0.8 percentage points annually.
What does full-service property management cost, including leasing, in Albania as of 2026?
As of early 2026, property management fees in Albania range from 8% to 12% of collected rent, meaning 40 to 60 euros (44 to 65 US dollars) monthly for a 500 euro rental.
Leasing or tenant-placement fees are typically half to one full month of rent, so 250 to 500 euros (270 to 540 US dollars) each time you need a new tenant.
What's a realistic vacancy buffer in Albania as of 2026?
As of early 2026, landlords should set aside 8% to 10% of annual rental income as vacancy buffer for Tirana properties, and 15% to 30% for seasonal coastal markets like Vlora or Sarandë.
This translates to three to four vacant weeks yearly for well-located Tirana properties, and eight to sixteen weeks for coastal units without a year-round tenant strategy.
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.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses in our property pack about Albania, we always rely on the strongest methodology we can.
We aim to be fully transparent, so below we've listed the authoritative sources we used and how we used them.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank of Albania Real Estate Survey | Albania's central bank housing market research is widely treated as the baseline for the country. | We anchored price direction, demand, and market tightness going into early 2026. We translated those signals into yield assumptions matching how prices and rents co-move. |
| INSTAT Consumer Price Index | INSTAT is Albania's official statistics agency, and CPI is the standard price measure. | We cross-checked whether rent inflation is running hot or cooling. We validated our rent assumptions for January 2026. |
| FRED HICP Rentals Series | A widely used macro platform republishing official series with clear provenance. | We triangulated rent trend momentum. We sanity-checked our 2026 rent-growth assumptions against that trend. |
| ECB Data Portal Albania HICP | The ECB portal is a primary reference for harmonised inflation series in Europe. | We cross-verified the inflation environment shaping landlord costs. We used it as consistency check against INSTAT signals. |
| Deloitte Property Index | Deloitte is a top-tier global consultancy with a repeatable survey framework. | We used it as structured cross-country benchmark for Albania's prices. We kept yield estimates in realistic European range. |
| Gazeta Tema | National outlet explicitly citing Deloitte dataset and figures. | We pinned down a concrete nationwide average price from Deloitte. We used that anchor in our yield math. |
| Colliers Albania Market Overview | Major international real estate advisory firm with professional research practice. | We confirmed Albania's institutional view on tightness, pipeline, and demand. We stress-tested neighborhood and product-type differences. |
| PwC Albania Tax Summary | PwC is a Big Four firm with regularly maintained tax reference. | We anchored income tax treatment at the rate investors apply to rentals. We built conservative net-yield haircut using that rate. |
| KPMG Albania Tax Base Note | KPMG is a Big Four firm tying directly to property taxation legal framework. | We grounded how property tax base is determined. We estimated annual property-tax drag inside net yields. |
| Municipality of Tirana | Official city authority for Albania's largest housing market. | We confirmed recurring local fees in Albania's biggest market. We used Tirana as cost baseline for other municipalities. |
| INSTAT Tourism Statistics | Official data directly measuring tourism, a major rent-demand driver. | We justified why coastal markets have strong peak rents but vacancy risk. We reflected seasonality in vacancy estimates. |
| Prime Minister's Office Vlora Airport | Primary government source on a flagship infrastructure project. | We identified a rent catalyst for Vlora and coastal areas. We translated that into where yields may compress or rents jump. |
| RTSH Public Broadcaster | Albania's public broadcaster with dated, checkable milestones. | We time-boxed the demand shock as imminent in early 2026. We ranked Vlora micro-areas for near-term rent pressure. |
| EBRD Albania Rail Investment | Major international institution with highly reliable project updates. | We supported the connectivity upgrade story lifting rents. We named micro-areas benefiting from better Tirana-Durrës connectivity. |
| Official Gazette Portal | Official publication channel for binding government acts. | We kept property-tax discussion tied to official mechanisms. We referenced where tax-related acts are published. |
| Investropa Albania Forecasts | Our research platform aggregating institutional data with market intelligence. | We validated price direction and demand trends. We cross-referenced yield estimates against proprietary models. |
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