All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Tirana's property market is included in our pack
Thinking of buying a property in Tirana? You're not alone!
Many people love Tirana's lively culture and want to own a stylish apartment or a cozy villa there.
Is it financially viable, though? Are property prices increasing in Tirana? How much does it cost? Is it better to invest in the city center or Blloku area? What about the taxes? Where are the best yields?
We've figured it out for you.
The Investropa team knows this market inside and out. As a matter of fact, we've organized all our findings in a pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How's the real estate market in Tirana?
Is the property market showing growth or decline? Let's analyze the latest data and statistics.
Property types
In Tirana, there are various types of properties available for sale.
These include apartments, houses, villas, and commercial spaces like shops and offices. Apartments are the most common and come in different sizes, from studios to multi-bedroom units.
Houses and villas offer more space and often include gardens or yards. Commercial spaces are suitable for starting or expanding businesses.
Whether you're looking for a cozy home, a spacious villa, or a business venture, Tirana's property market offers a diverse range of options to cater to different needs and preferences.
What's better: buy or rent?
(If you're keeping it for yourself and not renting it)
Whether you've already made Tirana your home or are considering it for the future, you might be pondering whether to buy or rent a property in the capital of Albania.
Without a doubt, you should buy if you want to acquire equity and have more control over your living situation.
One data can help you make a decision - the property price-to-rent ratio. It's a simple way to gauge the impact of rental earnings on covering the property's cost.
According to Numbeo, the property price-to-rent ratio in Tirana is around 21.82, which is around the world average.
This value shows that it would take you 22 long years of paying rents before you can own a property in Tirana. Renting for such an extended period means you wouldn't be building any equity, and you might end up spending more money without gaining ownership of the property.
Property prices in Tirana
On average, according to the last reported data from Central Bank of Albania, buying a property in Tirana would cost you around $2,530 per square meter.
Of course, there are noticeable differences. The value of a square meter for an apartment in the city center of Tirana might differ from a suburban house. We actually offer a more in-depth analysis in our pack for buying property in Tirana and in Albania.
To help you understand better, it means that, instead of buying an apartment in Paris or London, you can afford 5 properties in Tirana.
Also, housing prices in Tirana are 9% cheaper than in Sofia.
The most expensive neighbourhoods in Tirana are probably Blloku, Kombinat, and Don Bosko, while the cheapest are likely Zall-Bastar, Kombinat, and Xhamlliku.
Trends
First and foremost, it's important to note that Albania offers peace and stability in its political and economic climate today. The last Fragile State Index that has been reported for this place is 56.7.
Keep this in view when pondering the viability of buying a property in in Tirana.
Besides that, if we look at the IMF's GDP forecasts, Albania's economy is expected to soar by 14% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.
If you want to invest in real estate in Tirana it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.
Also, in Albania, the average GDP per capita has changed by 16.4% over the last 5 years. Very few countries have achieved superior results.
This data is a positive signal - housing prices in Tirana might soar in 2024 and after that.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Albania right now.
Buying property in Tirana
It is difficult to buy property in Tirana due to the lack of reliable and updated information on the market. That's why we have created the pack to buy property in Tirana and in Albania.
Buying process
Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.
Here, we are providing you with a simpler version to assist you in better comprehending the information.
This is the step-by-step process to purchase a property in Tirana:
- Research the Tirana property market and legal requirements.
- Obtain a Taxpayer Identification Number (TIN) from the tax office.
- Hire a licensed real estate agent familiar with Tirana's regulations.
- View properties, considering infrastructure, location, and legal status.
- Negotiate the price and terms, guided by the agent.
- Sign a preliminary sales agreement, including a deposit (usually 10%).
- Conduct due diligence, verifying property title, permits, and boundaries.
- Draft the final sales contract, specifying payment terms and conditions.
- Obtain a Certificate of Ownership from the District Immovable Property Registration Office.
- Transfer funds to the seller's bank account for the final payment.
- Complete the notarization process and register the property at the Tirana District Court.
- Pay the property transfer tax and obtain a new certificate of ownership with your name.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Albania.
Make a profitable investment in Tirana
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Where to find a property
If you're starting your property search in Tirana, these websites can help simplify the process:
- Indomio - Albania's top real estate platform, offering personalized property searches, a mobile-friendly design, and connections to local agents.
- Albania Property Group - Providing a diverse selection of properties for sale and rent.
- Realting - An international real estate platform in Albania catering to property buying, selling, and renting.
- Albania Property Real Estate - Explore a wide range of real estate properties in Albania's southern region, including apartments, villas, and houses for sale.
- Rightmove - A leading UK property platform offering a variety of services, including property sales, rentals, house prices, and commercial property listings.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Albania.
What you can get
As mentioned before, the average price per sqm in Tirana is $2,530. A 1-bedroom property with an area of 60 square meters would cost approximately $152,000, while a 2-bedroom with an area of 85 square meters would cost approximately $215,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in the top areas of Tirana are commonly at a premium. If you're thinking about Blloku, an apartment could cost you around $290,000, but a house in Sauk could be priced at $440,000.
Some locations are not as expensive. You may find an apartment in Kombinat for $80,000, or you could discover one in Lapraka priced at $70,000.
Find a more detailed price list in our full pack for buying property in Albania.
Common mistakes
Here are the main pitfalls when buying a property in Tirana, Albania:
- Informal settlements (plazhi) may lack proper permits and utilities.
- Old communist-era buildings may have structural issues.
- Ownership disputes related to the post-communist property restitution process.
- Non-transparent property deals common in the "informal" market (pazar i zezë).
- Limited availability of mortgage options and high interest rates.
- Risk of falling for "land grab" schemes in suburban areas.
- Lack of clear urban planning and development zones affecting property use.
- Difficulty in repatriating funds due to currency control measures.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Albania Property Pack
Living in Tirana
Tirana is a vibrant and modern city with a growing economy, offering plenty of opportunities for those considering buying property there.
Cost of living
The cost of living in Tirana is generally considered to be quite affordable, with food, transportation, and housing all being relatively inexpensive compared to other European cities. Additionally, the city is home to a variety of markets and shops that offer a wide range of goods at low prices.
Here are some examples to better understand the cost of living in Tirana, Albania:
- Traditional Albanian coffee (Kafe Turke): $1 at a local café in Blloku neighborhood.
- Rent for a one-bedroom apartment in the Pazari i Ri area: $400/month.
- Fergese dinner for two at a restaurant in Tanners' Bridge (Ura e Tabakëve): $30.
- 1.5-liter bottle of Birra Tirana beer: $1.50 at a supermarket.
- Electricity bill for an 85m² apartment using OSHEE (Electricity Distribution Operator): $60/month.
- Monthly membership at Trim Gym in Tirana: $25.
- Ticket to a movie at Millennium Cineplex: $6.
- Raki, a popular Albanian spirit (500ml): $10 at a nearby liquor store.
Neighbourhoods
We want to show information in an easy-to-understand way. So, we made a summary table that lists the different neighborhoods in Tirana. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Blloku | Blloku is a trendy and vibrant neighborhood known for its lively nightlife, upscale restaurants, and shopping boutiques. | Entertainment options, variety of dining experiences, and fashionable atmosphere. | Noise during late hours, higher prices compared to other areas. |
Tufina | Tufina is a residential area with a mix of apartment buildings and private houses, offering a quieter and family-friendly living environment. | Peaceful surroundings, green spaces, and community-oriented. | Limited entertainment and shopping options, some areas may lack proper infrastructure. |
Sheshi Skënderbej | Located in the city center, Sheshi Skënderbej is a historic and cultural hub with major landmarks and government buildings nearby. | Rich historical significance, close to major institutions and museums, well-connected. | High traffic congestion, limited parking spaces, and higher property prices. |
Brraka | Brraka is a developing area with a mix of residential and commercial properties, offering affordable housing options and potential for investment. | Affordable housing, proximity to the city center, and emerging business opportunities. | Some parts may lack complete amenities, ongoing construction in certain areas. |
Pazari i Ri | Pazari i Ri, or the New Bazaar, is a recently revitalized neighborhood with a blend of traditional markets and modern cafes and shops, attracting locals and tourists alike. | Unique market experience, trendy cafes and restaurants, and cultural appeal. | Crowded during peak hours, limited parking spaces, and some areas might still undergo improvements. |
Lapraka | Lapraka is a residential area offering a peaceful living environment with good access to green spaces and recreational areas. | Quiet surroundings, parks and sports facilities, and relatively affordable housing. | Limited shopping and entertainment options, fewer public transport connections. |
Don Bosko | Don Bosko is a well-established neighborhood with a mix of residential and commercial areas, known for its community-oriented atmosphere and local businesses. | Community feel, local businesses, and diverse dining options. | Some areas might lack modern infrastructure, limited green spaces. |
Kodrat e Liqenit | Kodrat e Liqenit, or the Lake Hills, is a residential area overlooking the Artificial Lake, providing beautiful views and a serene living environment. | Scenic views, proximity to the lake, and peaceful atmosphere. | Can be hilly and require more walking or driving, limited shopping and entertainment options. |
Life in Tirana
Tirana's economy is largely driven by the service sector, which accounts for a majority of the city's GDP. The industrial sector, however, is growing rapidly, with investments in technology, tourism, and infrastructure.
What expats usually like the most in Tirana is its vibrant nightlife, with numerous bars and clubs, as well as its diverse culinary options, with a variety of traditional and international restaurants.
Unfortunately, we can't say there is no crime in Tirana (the crime rate index is around 42, which is not so favorable. Common crimes in Tirana include burglary, pickpocketing, fraud, and drug trafficking, which primarily affect the local population and are not a major concern for expats.
A good point for a property investor - Tirana has a mass rapid transit system, known as the Tirana Metro.
Finally, access to healthcare in Tirana is good, with a Healthcare Index of 48. Good healthcare facilities is a positive indicator in a real estate market.
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Renting out in Tirana
For those aiming to buy property solely for renting out and earning income.
Long-term
Tenant Profiles in Tirana
If you decide to buy and rent out to long-term tenants, you should target young professionals, families, and students due to Tirana's booming economy and growing student population. Additionally, vacation rentals are popular due to the city's proximity to the Albanian Riviera.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Blloku | Youth, professionals | Central location, nightlife | $300 - $600 |
Apartment in Pazari i Ri | Locals, families | Traditional market, history | $250 - $500 |
Studio in Blv. Zogu I | Students, singles | Proximity to universities | $150 - $300 |
Apartment in Sauk | Families, professionals | Quiet residential area | $200 - $400 |
Apartment in Don Bosko | Young couples, families | Suburban feel, parks | $250 - $500 |
Apartment in Kodra e Diellit | Professionals, expats | Modern housing, views | $300 - $600 |
Apartment in Kombinat | Working-class, families | Affordable housing | $150 - $300 |
Rental yields
Nowadays, rental yields in Tirana are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.
Rental yields in Tirana are typically highest for properties in areas with a good public transport network, as these are in high demand from tenants. Additionally, properties located in areas with good amenities such as shops, restaurants and entertainment venues tend to attract higher rents and have higher yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to business travelers, tourists, and students visiting Tirana for a short period of time. Additionally, you could rent to people who are attending events in Tirana such as concerts, conferences, or festivals.
If you decide to go with that option, look for properties in Blloku, near the city center, or in the Dajti area, located close to the mountain.
Currently, there are approximately 4,000 active Airbnb listings in Tirana, reflecting a highly dynamic and bustling short-term rental market. The average daily rate is at $37.
You have the opportunity to generate some additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Tirana can make around $400 per month. Also, the average occupancy rate is estimated at 42%.
Is it worth buying real estate in Tirana then?
Buying property in Tirana can be a fantastic opportunity for those looking to invest in a stable market with the potential for long-term capital growth and rental income. Tirana's property market has shown stability, and the city's growing economy, as mentioned in the article, suggests a favorable environment for real estate investment.
If you're in it for the long haul, buying a property allows you to build equity and benefit from property appreciation over time. Plus, the relatively low cost of living compared to other European cities makes Tirana an attractive destination for expats, students, and professionals, potentially increasing the demand for rental properties.
However, if you're a speculative investor seeking quick returns or someone who is risk-averse, Tirana might not be the right fit. Short-term price fluctuations can occur in any real estate market, so if you're not willing to hold onto your property for an extended period, you might not achieve the desired returns.
Additionally, Tirana's market does come with its own set of challenges, including informal settlements, old buildings with structural issues, and non-transparent property deals, as mentioned in the article. If you lack local knowledge or aren't prepared to navigate these challenges, it could be a risky endeavor.
Ultimately, the decision to buy property in Tirana should align with your investment goals, risk tolerance, and willingness to thoroughly research and understand the local market dynamics.
Make sure you understand the real estate market in Tirana
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.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.