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
Where are the best places to invest in Albania right now? Is Tirana still the top pick, or are cities like Durrës, Vlorë, and Sarandë gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Albania and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Dhërmi's luxury villas and high-end tourism potential are attracting strong interest
The coastal village of Dhërmi is becoming a hotspot for luxury villa developments and high-end tourism.
Property prices in Dhërmi are on the rise, with some areas seeing annual increases of up to 25%. While the average price for beach properties in the Albanian Riviera is around $800 per square meter, Dhërmi is catching up fast, especially compared to nearby hotspots like the Lungomare area near Vlora.
Dhërmi's appeal is further boosted by new luxury villa projects, such as the Zoe Hora boutique hotel. This stylish addition is part of a larger trend of upscale developments led by major Albanian developers. The area is also attracting a younger crowd, thanks to its trendy music scene and a growing number of high-end hotels and resorts.
The Albanian government is actively promoting high-end tourism by reducing VAT rates for hotels and enhancing infrastructure. These efforts aim to position Albania as a European tourism hub, which in turn elevates Dhërmi's status as a luxury destination.
Significant infrastructure improvements are underway, including the construction of a new international airport in Vlora and a four-mile tunnel to cut travel time from Vlora to Dhërmi. These developments make the area more accessible and attractive to potential buyers and tourists.
Sources: International Living, Euronews, Mighty Travels
2) Krujë is a hot market as buyers seek properties with cultural value and tourism business potential
Krujë is quickly becoming a hot spot for property buyers interested in cultural and tourism-related ventures.
Tourism is booming in Krujë, with Krujë Castle drawing nearly 250,000 visitors in 2024. This surge shows a growing fascination with the area's rich history and cultural sites.
The Albanian government is on board, actively promoting cultural tourism. By focusing on preserving and showcasing Albania's heritage, they're paving the way for more tourists to explore places like Krujë, which is great news for potential tourism businesses.
International travelers are also catching on, with millions visiting Albania. This trend highlights a rising demand for destinations with cultural significance, making Krujë a prime spot for investors looking to tap into heritage tourism.
With its unique blend of history and culture, Krujë offers a compelling opportunity for those looking to invest in tourism-related properties. The town's charm and historical significance are drawing attention from both local and international buyers.
As more people discover Krujë's potential, the market is set to grow, offering exciting prospects for those interested in cultural tourism. The combination of government support and increasing visitor numbers makes it a promising investment.
Sources: Albanian Times, Euronews, Guide to Europe
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) Gjirokastër's historic district is booming for real estate investments due to UNESCO status and rising tourism
The historic district of Gjirokastër is gaining traction among real estate investors, thanks to its UNESCO World Heritage status and booming tourism.
In 2023, Gjirokastër saw a 50% jump in tourist numbers compared to the previous year, with around 300,000 visitors exploring its charms. This influx, including many international tourists, is pushing up property prices in the area.
Real estate transactions are on the rise, fueled by the growing interest in cultural tourism. Gjirokastra Castle, a top cultural spot in Albania, experienced a 53% increase in visitors in the first half of 2023 compared to the same period in 2022. Local events like the National Folk Festival are also drawing more eyes and wallets to the region.
UNESCO World Heritage status is a game-changer for local real estate markets. Cities with this designation often see a boost in property values, and Gjirokastër is expected to follow suit. The area's natural beauty and rich cultural heritage are magnets for foreign visitors, further driving property demand.
Investors are taking note of the economic benefits tied to Gjirokastër's heritage status. The trend seen in other UNESCO cities suggests a promising future for real estate here. The combination of cultural allure and economic potential makes Gjirokastër a hot spot for property buyers.
With the local government's efforts to promote tourism and cultural events, the district is poised for continued growth. The blend of history and modern investment opportunities is creating a unique market dynamic that savvy investors are eager to tap into.
Sources: Euronews Albania, Politiko Albania, Global Philadelphia
4) Lungomare Vlorë is booming in real estate with new infrastructure and high demand for beachfront properties
Lungomare, Vlorë is now a hotspot for real estate thanks to recent infrastructure upgrades and a surge in demand for beachfront properties.
In recent years, the Albanian government has poured resources into improving the area, with projects like road expansions and new public amenities making Lungomare more accessible and attractive. These changes have not only drawn tourists but also caught the eye of property investors looking for the next big thing.
Tourism is booming, especially with the upcoming opening of the new Vlora International Airport in 2024. This development will cut travel time to the coast, making it even easier for visitors to flock to Lungomare. Naturally, more tourists mean a higher demand for properties, particularly those offering stunning beachfront views.
Property prices in Lungomare are climbing, with some areas seeing annual increases of up to 25%. Despite this, the average price for beach properties in the Albanian Riviera, especially around Vlorë, is still a bargain compared to other Mediterranean hotspots. This affordability, coupled with the area's breathtaking scenery and prime location, makes it a smart choice for real estate investment.
Insiders know that Lungomare's charm lies in its blend of natural beauty and modern convenience. The region's strategic position along the coast offers not just picturesque landscapes but also easy access to other parts of the Mediterranean, making it a desirable destination for both living and vacationing.
With these factors in play, Lungomare is quickly becoming a favorite among those looking to invest in property. The combination of rising demand and competitive pricing is creating a perfect storm for real estate growth in this hidden gem of the Mediterranean.
Sources: Telegrafi, Travel and Tour World, Mighty Travels, Vlora Marina
5) Saranda city center attracts investors with high rental yields due to rising tourist numbers
Saranda's city center is a hot spot for investors, thanks to its high rental yields fueled by a tourist boom.
In 2023, Albania saw a massive influx of tourists, with up to 10 million visitors flocking to its beautiful beaches and affordable attractions. This trend didn't slow down in 2024, as 3.3 million foreigners visited by July, showing a clear rise in tourist numbers.
During peak seasons, Saranda's rental market is buzzing, with holiday apartments reaching 90% occupancy by July 2024. This demand, driven by both Kosovar and international tourists, means investors can enjoy rental yields of 7-8% for standard apartments and even higher returns of 8-10% in prime locations.
Real estate agencies are calling this Saranda's golden decade, as property prices have jumped by 12% since 2023. Sea-view apartments are still a bargain compared to other popular spots in the region, making Saranda a smart choice for savvy investors.
Looking ahead, the planned international airport set to open by 2025 is expected to make Saranda even more accessible, likely boosting both tourist numbers and property values further.
Sources: Euronews, GlobiHome, Euronews Albania
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6) Real estate activity is booming near Tirana East Gate due to nearby shopping and entertainment facilities
The area around the Tirana East Gate (TEG) is buzzing with real estate activity, and it's easy to see why.
TEG isn't just any shopping mall; it's the most visited retail destination in Albania, drawing in an impressive 10 million visitors annually. This high foot traffic naturally makes the surrounding area more attractive for real estate investments. With so many people flocking to TEG, the demand for nearby properties is skyrocketing.
In 2023 and 2024, property prices in Tirana rose due to high demand and limited supply. This trend is expected to continue into 2025, with projections indicating a further increase of 3% to 7%. The demand for properties, especially in central areas like those around TEG, is outpacing supply, making it a hot spot for real estate activity.
TEG offers a wide range of entertainment options, including a seven-hall Cineplex Cinema and an indoor playground, which adds to its appeal. The mall's success has been highlighted by media outlets, showcasing its role in transforming retail in Albania. This success story is a magnet for both domestic and international investors, further driving up real estate interest in the area.
Investors are particularly drawn to the area because of its proximity to TEG's shopping and entertainment facilities. The mall's influence extends beyond just shopping; it's a lifestyle hub that attracts a diverse crowd, making the surrounding real estate even more desirable.
With TEG's continued success, the area is poised for further growth. The combination of high visitor numbers and a variety of entertainment options makes it a prime location for real estate investment. As more people discover the benefits of living near TEG, the demand for properties is likely to keep rising.
Sources: Retail SEE, Balfin, ACROSS Magazine
7) Shëngjin attracts interest for affordable coastal properties and strong future development potential
Shëngjin is catching eyes for its affordable coastal properties and future growth potential.
More vacationers are flocking to Shëngjin, with a noticeable uptick in reservations recently. This surge is thanks to the town's cleanliness, peace, and competitive prices, making it a hot spot for tourists. The charm of Shëngjin lies in its ability to offer a serene escape without breaking the bank.
Foreign investors are also showing interest, drawn by the affordable real estate options in Shëngjin. Local real estate agents are buzzing about the increase in inquiries and transactions, signaling a growing trend. It's a place where you can snag a coastal property without the hefty price tag found in other seaside towns.
The Albanian government is on board too, actively promoting tourism in coastal gems like Shëngjin. They're rolling out initiatives to boost infrastructure, which is expected to make the town even more appealing. These efforts are part of a broader strategy to enhance the area's allure for both visitors and investors.
Development projects are in the works, focusing on improving infrastructure and tourist facilities. These plans are set to further elevate Shëngjin's attractiveness, making it a prime spot for future growth. The town is on the brink of transformation, with new developments promising to enhance its charm.
With all these elements in play, Shëngjin is poised to become a sought-after destination for those looking to invest in coastal properties. The combination of affordable prices and development potential makes it a compelling choice for savvy investors.
Sources: Telegrafi, World Bank, Tranio
8) Theth in the Albanian Alps is drawing eco-tourism investors to develop sustainable lodging options
Theth, nestled in the Albanian Alps, is quickly becoming a favorite spot for eco-tourism investors.
Visitors are flocking to Theth, drawn by its unique guesthouses and eco-lodges that promise an immersive nature experience. The village's charm lies in its commitment to sustainable tourism, making it a magnet for those seeking eco-friendly travel options.
The Albanian government is on board, actively pushing for sustainable tourism through its National Tourism Strategy 2024-2030. This plan aims to transform Albania into a diversified tourism destination, with a strong focus on sustainability and community involvement. It's a perfect match for the rising demand for nature-based travel experiences.
Theth is part of the Albanian Alps National Park, a protected area that not only shelters rare species but also offers educational content to visitors. This makes it an ideal spot for eco-tourism, attracting nature lovers eager to experience the authentic Albanian lifestyle while keeping their environmental footprint light.
Investors are particularly interested in developing sustainable lodging options in Theth, capitalizing on the village's natural allure and the government's supportive stance. Theth's appeal is further enhanced by its location within a national park, which adds an extra layer of attraction for eco-conscious travelers.
With its breathtaking landscapes and eco-friendly accommodations, Theth is poised to become a leading destination for those looking to invest in sustainable tourism. The village's growth is a testament to the increasing popularity of eco-tourism in Albania.
Sources: Eco-Tourism Expert, Albanian Times, Karlo Bag
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) Blloku in Tirana is a hot market with vibrant nightlife and high rental property demand
Blloku in Tirana is buzzing with energy, making it a prime spot for property buyers.
Known for its vibrant nightlife, Blloku attracts both locals and tourists, thanks to its mix of historical charm and modern amenities. This lively atmosphere has been highlighted in various travel and lifestyle publications, drawing attention from around the globe.
The area has seen a boom in bars, restaurants, and entertainment venues, which are a magnet for young professionals and expatriates. This crowd is a key driver of the high demand for rental properties, keeping the real estate market in Blloku dynamic and competitive.
In Tirana, including Blloku, over 60% of real estate agents reported selling properties at the asking price or just slightly below, indicating a strong market demand. This trend is fueled by the area's appeal to renters looking for a lively and convenient location.
Short-term rentals are also thriving, with a median occupancy rate of 64% and typical listings booked for 234 nights a year. This shows a robust demand for short-term stays, as visitors flock to experience Blloku's social scene.
Social media is buzzing with posts about Blloku's nightlife and social activities, further cementing its reputation as a hotspot. This online presence highlights the area's appeal to a younger, social crowd, eager to enjoy its vibrant offerings.
Sources: Albanian Daily News, Airbtics, Skift
10) Golem near Durrës is seeing a property boom as a top family-friendly beach destination
Golem, near Durrës, is becoming a hot spot for property buyers.
Local real estate agents are buzzing about the 15-20% jump in apartment prices over the past few years. This surge in property transactions shows that more people are eyeing Golem as a place to invest. The area is not just about numbers; it's about the lifestyle that comes with it.
Golem is transforming into a family haven with the rise of family-friendly resorts like the Grand Blue Fafa Resort & SPA. Imagine having a private beach, outdoor pools, and a fitness center right at your doorstep. These amenities are making Golem a magnet for families wanting a beachside escape.
Travelers are raving about Golem on platforms like Airbnb, where rentals such as the Sea View Apartment and the Ground Floor Studio are getting top marks. Families are loving the vibe here, and their positive reviews are spreading the word about Golem's charm.
It's not just about the beach; it's about the whole package. Golem's growing reputation as a family-friendly destination is drawing more interest from those looking to buy property. The combination of beautiful resorts and glowing reviews is making it a top choice for family vacations.
Sources: Property Hub, Booking.com, Airbnb
11) Property values around Lake Ohrid in Pogradec are rising as more people buy vacation homes with scenic views
The area around Lake Ohrid in Pogradec is seeing a rise in property values, especially for vacation homes with stunning views.
People are flocking to this region, drawn by its natural beauty and the charm of Lake Ohrid. Tourism is booming, with more visitors arriving each year, particularly in Ohrid, North Macedonia. This influx of tourists is driving up demand for vacation homes, making it a hot spot for property investment.
Local real estate agents are buzzing about the increased interest in properties with scenic views. Inquiries and sales are on the rise, as more people look to own a piece of this picturesque area. A house in Memelisht, Pogradec, recently listed for 264,200 USD, highlights the significant appreciation in property values.
Reports from the real estate market confirm that tourism is a major economic driver here. The region's economic growth is closely tied to its appeal as a tourist destination, which in turn fuels the property market. This makes it an attractive option for those looking to invest in vacation homes.
Insider knowledge suggests that properties with lake views are particularly sought after. Buyers are willing to pay a premium for these scenic vistas, knowing that they offer both a serene escape and a solid investment opportunity.
For those considering a purchase, now might be the perfect time to explore the options around Lake Ohrid. The combination of natural beauty and rising property values makes it a compelling choice for potential buyers.
Sources: Realigro, Econstor, World Bank
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12) Property values near Kukës airport will rise as infrastructure and connectivity improve
The area around the new airport in Kukës is set to see a boost in property values as infrastructure and connectivity improve.
In recent years, the Albanian government has poured resources into building new roads and highways, which historically leads to property value increases in well-connected regions. Just look at what happened with Tirana International Airport; its expansion brought a noticeable rise in property values nearby.
Similarly, the new airport in Vlora was expected to spur economic growth and tourism, which is likely to have a positive impact on the Kukës region too. This isn't just speculation; property values in Albania have been climbing, especially in areas with better infrastructure.
Experts are forecasting economic growth in Kukës thanks to its improved accessibility, making it a hotspot for investors. The local government is planning urban development and expansion, and foreign investors are showing increased interest, all pointing to rising property values.
Media outlets are also buzzing about Kukës as an emerging property hotspot, which suggests a growing interest in the region's real estate market. This kind of attention often translates into increased demand and higher property prices.
Sources: Wikipedia, Invest in Albania, Invest Mental Albania, Wikipedia
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.
Related analyses:
- Why you should consider investing in property in Albania
- Overview of the current state of the real estate market in Albania
- Insights for foreigners buying property in Albania
- The strongest trends for real estate in Albania
- Forecasts and predictions for the real estate market in Albania