Buying real estate in Albania?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

The real estate market in Durrës: 2024 forecast

Last updated on 

property investment Durrës

Yes, the analysis of Durrës' property market is included in our pack

As we step into the year 2024, the real estate landscape in Durrës continues to evolve, presenting both challenges and opportunities for investors, homeowners, and industry stakeholders.

In this article, we will give you a clear picture of what's happening in Durrës' real estate scene for the year ahead.

If you need a full and more detailed report, with fresh data and actionable advice, please note that you can get our property pack for Albania. This pack will also give you unlimited access to our team of experts, allowing you to ask them anything related to the housing market in Durrës specifically.

How's the Albanian economy doing?

Current state

Understanding the real estate market in Durrës, Albania, requires a multifaceted approach, considering the country's economic stability, historical context, and recent trends.

Albania's economy has experienced fluctuations over the years, impacting various sectors, including real estate. Post-communist era reforms led to significant changes, transitioning from a centrally planned to a market-oriented economy. This shift affected the real estate sector, particularly in urban areas like Durrës.

The real estate market in Albania, and specifically in Durrës, has seen growth, especially in the residential sector.

This growth is partly due to Albania's increasing appeal as a tourist destination, which has spurred demand for vacation homes and rental properties. Durrës, with its coastal location, has been a focal point for such developments.

Government policies have historically influenced Albania's housing market. Initiatives aimed at encouraging foreign investment and developing infrastructure have positively impacted the real estate sector.

However, there have been challenges, such as unclear property titles and regulatory issues, which have sometimes hindered more significant growth.

In recent years, there have been efforts to streamline property registration and resolve disputes over property ownership. These changes are crucial for foreign investors who seek clarity and security in their investments.

The Albanian government has also introduced policies to attract foreign buyers, including tax incentives and simplified procedures for property purchases.

From a local perspective, Durrës is considered an attractive area for real estate investment. Its coastal location, historical significance, and proximity to the capital, Tirana, make it popular for both residential and commercial properties.

Beachfront properties, apartments with sea views, and homes near tourist attractions are highly sought after.

For foreign investors, specific incentives include potential capital gains from the rising property values and the opportunity to invest in a growing tourist destination.

However, drawbacks include navigating the legal system, which, despite improvements, can still be challenging due to bureaucratic procedures and occasional lack of transparency.

Comparatively, real estate prices in Durrës are generally lower than in some neighboring countries or more established European destinations. This price difference makes it an attractive option for investors looking for affordable opportunities.

Regarding the legal framework, Albania has been working towards more stability and transparency. Efforts to align with European Union standards and improve legal processes around real estate transactions have been underway.

However, it's essential to approach investments with due diligence, as there are still areas where the legal framework may be less clear or in the process of improvement.

Overall, the real estate market in Durrës presents a mix of opportunities and challenges. While the area is attractive for investment, particularly in the housing market, it's vital to be aware of the historical, economic, and legal contexts that shape this market.

Outlook and forecast

Durrës, with its unique blend of historical significance, coastal allure, and strategic location, offers a distinct real estate market different from other regions in Albania.

To understand its potential and risks, let's delve into its specifics and how they might shape its future.

One of the unique factors of Durrës is its appeal as a coastal city with significant historical and cultural heritage. This combination makes it attractive for both tourism-related investments and residential properties.

The city's proximity to Tirana, the capital, enhances its appeal, providing a balance between urban accessibility and coastal living.

Forecasting the economy and stability of Durrës requires considering these unique elements. The city has shown resilience and growth potential, particularly in its tourism sector.

This growth can positively influence the real estate market, as demand for vacation homes, rental properties, and hospitality-related real estate can increase. The forecast, based on these factors, leans towards a positive outlook.

Compared to other Albanian cities, Durrës might experience faster growth due to its coastal advantage and tourism appeal.

In 2024, potential changes in government policies could further shape the real estate market in Durrës. If the government continues to focus on improving infrastructure, such as transportation links between Durrës and other parts of Albania, this could enhance the city's accessibility and attractiveness.

Additionally, policies that streamline foreign investment processes or provide tax incentives for property development can significantly impact the market. These changes could lead to increased foreign investment and higher demand for properties.

Specific factors suggesting improvements in Durrës include ongoing efforts to develop the city's infrastructure and urban planning.

Projects aimed at enhancing public spaces, improving road networks, and expanding tourist facilities directly impact the real estate market by making the city more livable and attractive for both residents and visitors.

These improvements can lead to higher property values and increased interest in both residential and commercial real estate.

However, potential investors should be mindful of specific risks. One such risk is the regulatory environment, which, despite improvements, may still present challenges in terms of property rights and legal processes.

Another risk is market saturation, especially if the growth in tourism-related properties outpaces demand.

Additionally, environmental concerns, such as coastal erosion or climate change impacts, could affect property values and desirability in the long term.

If these risks materialize, the real estate market in Durrës could face challenges. Regulatory difficulties might deter foreign investors, leading to reduced capital inflow. Market saturation could result in a decrease in property prices, affecting investors' returns.

Environmental issues could shift the desirability of certain areas, potentially leading to a decline in demand for properties in affected zones.

Make a profitable investment in Durrës

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Durrës

What about housing prices in Durrës?

If you want to know the last prices, rents and yields in Durrës, we have prepared everything you need in our property pack for Albania.

Current state

In Durrës, the trend in real estate prices over the past few years has been quite dynamic, reflecting both the city's evolving economic landscape and broader national and global economic trends.

Historically, real estate prices in Durrës, like in many developing cities, have been sensitive to economic fluctuations. During economic booms, there's often a noticeable increase in property values.

This is typically due to heightened demand, both from local buyers and foreign investors, attracted by the city's coastal charm and tourism potential.

Conversely, during economic crises, the real estate market tends to cool down, with prices stabilizing or even declining in response to reduced demand and economic uncertainty.

Comparing current real estate prices to those a decade ago, there's a clear increase. This rise can be attributed to several factors, including Albania's overall economic growth, increased foreign interest in the country's real estate, and specific developments in Durrës.

The city's ongoing efforts to enhance its appeal as a tourist destination and its strategic location have played significant roles in driving up property values.

Currently, the trend in real estate prices in Durrës seems to be leaning towards a steady rise. This is not a rapid surge but a gradual increase, reflective of sustained interest and investment in the area.

However, it's important to note that real estate markets are subject to fluctuations, and external factors like global economic conditions can impact this trend.

In terms of property types, those experiencing the highest growth in real estate prices are often linked to the tourism sector.

Beachfront properties, holiday homes, and apartments with sea views or proximity to tourist attractions are particularly in demand. This trend is driven by the city's growing reputation as a tourist hub, attracting both domestic and international visitors.

Consequently, properties that cater to this market segment have seen a more pronounced increase in value.

The population change in Durrës also plays a role in shaping real estate trends. In recent years, there's been a noticeable shift, with more people moving to the city, attracted by its economic opportunities, lifestyle, and infrastructure improvements.

This influx has contributed to the rising demand for housing, further pushing up real estate prices.

Specific factors driving these trends include improved infrastructure, increased foreign investment, and a growing recognition of Durrës as a key urban and tourist center in Albania.

The city's focus on developing its tourism sector, improving public services, and enhancing connectivity with other parts of the country makes it an increasingly attractive place to live and invest.

Outlook and forecast

The real estate market in Durrës, like in any city, is influenced by a combination of economic and demographic factors.

Let's explore some of these key factors and how they could potentially impact housing prices in the near future.

One major economic factor influencing real estate prices in Durrës is tourism. As a coastal city with significant historical and cultural attractions, Durrës draws both domestic and international tourists.

This tourism boom fuels demand for short-term rentals, hotels, and vacation homes, driving up real estate prices, particularly for properties near the beach or other tourist attractions.

Another factor is foreign investment. With Albania increasingly on the radar of international investors, Durrës benefits from this trend due to its strategic location and attractiveness.

Foreign investment in property and infrastructure projects can lead to a rise in real estate prices as these investments often signal growth and stability.

Demographically, urbanization plays a crucial role. As more people move from rural areas to cities in search of better job opportunities and lifestyle, cities like Durrës experience a rise in demand for housing. This demand can lead to higher real estate prices, especially if the supply of new housing doesn't keep up.

Looking at specific trends or events that could lead to an increase in housing prices in Durrës in the near future, continued development in the tourism sector is a key factor.

If Durrës continues to develop its tourism infrastructure and amenities, it will likely attract more visitors, increasing demand for real estate.

Another potential factor is infrastructure development, like improved transportation links with other parts of Albania and Europe. Such developments could make Durrës more accessible and desirable, pushing up property values.

In terms of the broader impact on Albania, the trends in Durrës might not necessarily reflect the situation in other cities or regions.

Each area has its unique dynamics. For instance, the capital city, Tirana, might experience different trends due to its role as the administrative and economic heart of the country.

Conversely, several factors could lead to a decrease in housing prices in Durrës. Economic instability or a downturn, both domestically and globally, could reduce demand for real estate, leading to lower prices.

Environmental concerns, such as coastal erosion or climate change effects, could also impact property values negatively, particularly for beachfront properties.

In the broader context of Albania, a decrease in Durrës might not mirror across all cities and regions. For example, areas less reliant on tourism or foreign investment may not be as affected by fluctuations in these sectors.

Make sure you understand the real estate market in Durrës

Don't rush into buying the wrong property in Albania. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Durrës

How's the demand for the real estate market in Durrës?

Current state

The current demand for residential real estate in Durrës offers a fascinating insight into the city's evolving market dynamics.

In terms of the balance between buyers and sellers, it appears that demand is robust, driven largely by the city's growing popularity as a tourism destination and its appeal as a coastal city.

This demand is not just from local buyers, but also from foreign investors and Albanians living abroad, who are increasingly interested in owning property in Durrës.

However, whether this demand outstrips supply or vice versa can vary depending on the specific type of property and its location within the city.

The supply of new housing in Durrës is an important factor in meeting this demand. Developers have been responding to the increased interest in the city by constructing new residential buildings, particularly in areas close to the beach and other tourist attractions.

However, the pace of new construction may not always keep up with the rapidly growing demand, especially for certain types of properties.

Buyers in Durrës are typically looking for properties that offer a blend of comfort, accessibility, and amenities. Properties with sea views or those close to the beach are particularly in high demand.

There is also a growing interest in modern apartments and houses that offer a higher standard of living, reflecting the city's economic development.

Additionally, properties that cater to the short-term rental market, such as vacation homes or apartments suited for tourists, are also sought after due to the potential for rental income.

Interest rates for mortgages are a crucial factor influencing buyer's decisions and overall demand. Generally, lower interest rates make mortgages more affordable, increasing buying power and stimulating demand.

Conversely, higher interest rates can decrease affordability and dampen demand. The effect of interest rates on the real estate market in Durrës would depend on their current levels and any recent fluctuations.

Recent changes in government policies or regulations can significantly impact the local real estate market. Any recent tax changes, such as adjustments to property taxes or capital gains taxes, can influence investment decisions.

Subsidies for homebuyers or new housing initiatives can stimulate the market by making it easier for people to purchase homes. Zoning laws and regulations around property development also play a crucial role.

They can determine what types of properties can be built and where, thereby influencing the supply and character of the housing market.

Outlook and forecast

In Durrës, as in many cities, demographic shifts like aging populations and urbanization significantly influence the real estate market.

Let's delve into how these factors, along with current trends in household formation, investment patterns, cultural shifts, and foreign investment, are shaping the demand for different types of properties in this unique market.

Urbanization is a key trend in Durrës, with more people moving to the city from rural areas or smaller towns. This influx leads to increased demand for residential properties, particularly apartments and smaller houses that are more affordable and easier to maintain.

Urban living preferences often favor locations close to amenities like shops, restaurants, and public transport, making properties in central or well-connected areas particularly desirable.

The aging population also affects the real estate market. Older individuals or retirees may look for properties that are easier to manage and navigate, such as single-story homes or apartments in buildings with elevators.

There could be a growing market for properties in quieter, more serene parts of the city, or those with proximity to healthcare facilities.

Current trends in household formation, such as an increase in single-person households or smaller family units, influence the demand for smaller, more compact living spaces.

Apartments and small houses, particularly in urban areas, become more sought after, accommodating the needs of these smaller households.

Regarding real estate as an investment in Durrës, there's a noticeable trend towards buying properties to rent out, especially given Durrës's appeal as a tourist destination.

Properties with potential for short-term rentals, such as apartments near the beach or tourist attractions, are particularly in demand. Investors are looking for properties that can provide a good return on investment, either through rental income or capital appreciation.

Cultural trends also play a role. For instance, if there's a growing preference for sustainable living, this could lead to increased demand for eco-friendly homes or developments that prioritize environmental sustainability.

Alternatively, if there's a trend towards luxury and high-end living, this might boost the market for premium properties, such as luxury apartments or villas with sea views.

The role of foreign investment in Durrës's real estate market is significant. Foreign buyers often look for vacation homes or investment properties, driving demand for certain types of real estate.

For instance, beachfront properties or those in prime tourist areas are particularly attractive to foreign investors.

Government policies regarding foreign investment can either encourage or restrict this demand. If there are favorable conditions for foreign buyers, such as tax incentives or simplified buying processes, this can boost demand. Conversely, restrictions or complicated procedures might deter foreign investment.

Lastly, niche markets in Durrës, like luxury properties or eco-friendly homes, might be experiencing their unique trends. The luxury market could be growing, driven by both local affluence and foreign interest, leading to higher demand for high-end apartments or villas.

Similarly, if there's a growing awareness and preference for sustainability, eco-friendly homes could become increasingly popular, appealing to a segment of buyers who prioritize environmental factors in their purchasing decisions.

Don't lose money on your property in Durrës

100% of people who have lost money in Albania have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Durrës

How's the rental market in Durrës?

Current state

The rental market in Durrës is shaped by various factors, including the type of properties in demand, tenant preferences, demographic characteristics, and economic factors.

Currently, the demand for rentals in Durrës is quite robust, particularly due to its appeal as a coastal city. This demand is influenced significantly by the tourism industry, with a high interest in short-term rentals, especially during the tourist season.

Apartments, especially those located near the beach or city center, are in high demand. These properties are preferred for their convenience, accessibility to tourist spots, and potential for higher rental yields.

Tenants in Durrës generally look for specific features in rental properties. Location is a key factor, with properties closer to the beach, city center, or major tourist attractions being more sought after. Size and amenities are also important.

For short-term rentals, tenants often prefer fully furnished apartments with modern amenities. In contrast, long-term tenants might prioritize more spacious properties, possibly with outdoor space or in quieter neighborhoods.

Tenant preferences vary significantly between urban, suburban, and rural areas. In urban areas, such as the city center of Durrës, there's a higher demand for apartments, particularly among young professionals, singles, or small families who value proximity to amenities and work.

In suburban areas, the demand might shift towards single-family homes or larger apartments, preferred by families or individuals seeking more space and a quieter environment.

In rural areas around Durrës, the rental market is likely less active, but those who rent here might be looking for larger properties with more natural surroundings.

Demographic characteristics of tenants vary across different regions. In urban areas, you're likely to find a higher concentration of young professionals, singles, and small families. These groups often have specific needs, such as proximity to workplaces, schools, and entertainment options.

Suburban areas might attract more families, who are typically looking for more space, a safe environment for children, and a community feel. In rural areas, the tenant base might include those who prefer a quieter lifestyle or are employed in local industries.

Income levels and economic factors play a crucial role in the type of properties tenants are renting. Higher-income tenants might opt for luxury apartments or larger homes with more amenities, while those with lower incomes might look for more affordable options, such as smaller apartments or shared accommodations.

Economic stability and job opportunities in Durrës can also influence the rental market, with areas having more employment opportunities attracting tenants who can afford higher rents.

In Durrës, certain regions might have a high concentration of specific tenant groups. For example, areas close to universities or educational institutions might have a higher concentration of students looking for shared accommodations or affordable apartments. Regions known for their business centers or industries might attract young professionals.

Conversely, quieter, more scenic parts of the city could be more popular among retirees or those seeking a peaceful living environment.

Outlook and forecast

The rental market in Durrës is influenced by several key factors, each playing a significant role in shaping current trends and future outlooks.

Firstly, tourism is a major driver of the rental market in Durrës. As a popular coastal destination, the city experiences a high demand for short-term rentals, especially during peak tourist seasons.

This demand primarily focuses on apartments and properties close to the beach or other tourist attractions. The seasonal nature of tourism means that rental prices can fluctuate significantly, with higher rates in the summer months.

Evolving lifestyles and work patterns, such as the rise in remote work, are starting to influence rental preferences. With more people having the flexibility to work from anywhere, there's a growing interest in rentals that offer a good balance between work and leisure.

Properties that provide a comfortable home office setup, reliable internet, and are located in areas with a pleasant living environment are becoming more attractive.

This shift could lead to an increased demand for rentals in quieter, more scenic parts of Durrës, away from the bustling city center.

Demographic changes also impact the rental market. As the population of Durrës grows and diversifies, there's a corresponding shift in rental needs.

Young professionals and families might prioritize different amenities, such as proximity to schools or workplaces. An aging population could increase the demand for rentals that are accessible and require low maintenance.

Emerging urban areas within Durrës are becoming new hotspots for rental properties. Areas undergoing development or revitalization, possibly due to new infrastructure projects or commercial investments, often attract renters looking for modern amenities and convenience.

These areas might offer a blend of residential and commercial properties, creating vibrant communities that appeal to a diverse tenant base.

Technological advancements and innovations are significantly impacting the rental market. Smart home features, high-speed internet, and energy-efficient appliances are becoming more common in rental properties, as tenants seek convenience and cost savings.

Landlords who invest in these technologies may find their properties more attractive to tech-savvy renters.

Sustainability and green living are increasingly influencing the rental market. There's a growing awareness and preference for eco-friendly living spaces, leading to a demand for properties with features like solar panels, energy-efficient designs, and green spaces.

This trend might not only attract environmentally conscious tenants but could also provide cost benefits in terms of energy savings.

The rental market forecast across various regions of Albania, including Durrës, can vary. While Durrës, with its tourist appeal, might see a continued demand for short-term and vacation rentals, other regions may experience different trends based on local economic and demographic factors.

For instance, rental markets in urban areas like Tirana might be driven more by employment opportunities and urban lifestyles.

Long-term, the outlook for Durrës's rental market appears promising, especially considering the city's ongoing popularity as a tourist destination and the evolving preferences towards remote work and sustainable living.

However, this outlook could be influenced by external factors such as economic stability and global tourism trends.

Finally, niche markets like luxury rentals and eco-friendly homes are experiencing unique trends in Durrës. Luxury properties, especially those offering premium amenities and exceptional locations, are attracting high-end tenants, including tourists and affluent locals.

Similarly, the growing eco-consciousness is fostering a niche market for environmentally sustainable rental properties.

Make sure you understand the real estate market in Durrës

Don't rush into buying the wrong property in Albania. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Durrës

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.