Authored by the expert who managed and guided the team behind the Albania Property Pack
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What will happen in Tirana’s real estate market? Will prices go up or down? Is Tirana still a hotspot for foreign investors? How is Albania’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Tirana, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Foreign buyers will drive up competition and prices in Tirana’s top residential areas
In 2024, 27% of homes sold in Albania were snapped up by non-Albanian residents, with Tirana being a major hotspot.
Foreign buyers are flocking to Tirana, making it a competitive market. Real estate made up 20% of foreign direct investment in the first nine months of 2024, showing a clear trend of international interest. This surge in investment is pushing demand higher.
In just six months, the average housing price in Tirana jumped by 23.5%. This isn't just a number; it's a reflection of the fierce competition among buyers, especially those from abroad. The city's prime residential areas are becoming increasingly sought after.
Compared to the second half of 2023, housing prices in Tirana rose by 11%. This steady climb highlights the ongoing demand and the influence of international investors. If you're considering buying, be prepared for a bustling market.
With more foreign buyers entering the scene, the competition is heating up. This trend is particularly evident in Tirana's prime spots, where properties are becoming hot commodities. The influx of international interest is reshaping the market landscape.
As demand continues to rise, expect prices to follow suit. Tirana's appeal to foreign investors is undeniable, and this is driving the market dynamics. If you're eyeing a property here, it's a good idea to act swiftly.
2) More foreign investors will enter Tirana’s residential market because of favorable investment conditions
Foreign investors are flocking to Tirana's residential market, and this trend shows no signs of slowing down.
In 2023, 14% of property sales in Albania were to non-Albanian residents. By mid-2024, this number almost doubled to 27%, with most buyers hailing from the EU. This surge highlights a growing interest from international investors.
Why the buzz? Well, Albania's government has rolled out the red carpet for foreign investors. Investor-friendly policies and tax incentives make it a breeze for non-residents to buy property. These perks are a big draw for those looking to dip their toes into the market.
And let's talk about affordability. Tirana's real estate is a steal compared to other European capitals. It takes about 15.3 years to buy an apartment in Tirana, while in Lisbon, you're looking at 19.5 years. This price difference makes Tirana a hot spot for those seeking value.
With these favorable conditions, it's no wonder that Tirana is catching the eye of foreign investors. The combination of government incentives and affordable real estate is a winning formula.
Sources: IEA, Albanian Daily News, Euriskon
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) Rental yields in Tirana will drop slightly as more properties enter the market
The rental market in Tirana is seeing a slight dip in yields as more properties flood the rental scene.
Why is this happening? Well, there's been a boom in construction projects. In the second quarter of 2023, construction permits in Tirana doubled, hitting about 461,000 square meters. That's the biggest jump ever for that time of year, signaling a surge in new buildings.
But here's the twist: between 2022 and 2023, the total area of building permits issued plummeted by 75%. This drop hints at a market that's getting crowded with new constructions, possibly leading to an oversupply of rental properties. With more options available, landlords might find themselves in a race to attract tenants, which could mean lower rents and yields.
Adding to the mix, the number of active Airbnb listings in Tirana shot up to 2,938 by September 2024. This increase in short-term rentals could shake up the demand for long-term leases, nudging rental yields down even further. It's a cocktail of factors that's reshaping the rental landscape in Tirana.
Sources: Euronews Albania, Citizens Albania, Airbtics
4) Demand for international-standard housing in Tirana will grow as the expat community expands
The growing expatriate community in Tirana is set to increase the demand for international-standard housing.
In 2023, over 10 million foreigners entered Albania, marking a 34.6% rise from the previous year. By December, this trend surged with a 57.6% increase in foreign nationals, totaling 616,994 people. This influx is reshaping the housing market, especially in Tirana, where international-standard properties are becoming more sought after.
Foreign direct investment in Albania hit €1.1 billion in the first nine months of 2024, with real estate as a major focus. This shows a strong interest from foreign investors, particularly in Tirana's real estate market. In the first half of 2024, 27% of properties were bought by non-Albanian residents, indicating a growing demand for international-standard housing.
Property prices in popular tourist and expatriate areas are climbing due to increased interest from foreign buyers. Tirana's rental yields are also rising as more people are drawn to the city's vibrant urban life. The Albanian government's policies to attract foreign investment, especially in real estate, are further boosting the development of international-standard housing.
As Tirana becomes a hotspot for expatriates, the demand for housing that meets international standards is expected to grow. The city's appeal is not just in its culture and lifestyle but also in its strategic location and investment potential. This makes it an attractive destination for those looking to invest in property.
With the influx of expatriates and foreign investors, Tirana's real estate market is evolving rapidly. The city's transformation is evident in the rising property prices and the increasing number of international-standard housing developments. This trend is likely to continue as more expatriates choose Tirana as their new home.
Sources: INSTAT, Albanian Times, Euronews Albania
5) Demand for senior-friendly housing in Tirana will grow as the population ages
The aging population in Tirana is reshaping housing needs.
In Albania, one in five people is over 65, and this trend is growing. As folks get older, they start looking for homes that are easier to navigate and more comfortable. Imagine living in a place where everything is within reach and designed with your needs in mind.
By 2025, life expectancy in Albania will hit 79.25 years. This means people will spend more years in homes that need to cater to their changing needs. It's not just about living longer; it's about living better in spaces that offer safety and comfort.
The Albanian government is on it. They've rolled out the National Political Document on Aging, which runs from 2020 to 2024. This plan is all about making life better for older folks, including making sure they have access to housing that suits them. It's a clear sign that the country is serious about adapting to these demographic changes.
For anyone considering buying property in Tirana, this shift means there's a growing market for homes that are senior-friendly. Think about investing in properties that offer features like ramps, wider doorways, and other accessibility options. It's not just a smart move; it's a necessary one as the demand for such homes is only going to increase.
So, if you're looking at the property market in Tirana, keep an eye on these trends. The demand for accessible housing is on the rise, and being ahead of the curve could be a great opportunity.
Sources: Tirana Times, Macrotrends, UNECE, Euronews
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6) Rental yields in central Tirana will rise as demand for city-center living stays strong
Rental yields in central Tirana are on the rise, driven by a few key factors.
Over the past few years, rental prices for 1+1 apartments have jumped by 61%, and 2+1 apartments have seen a 53% increase. This surge highlights a strong demand for living in the heart of the city, a trend that's not slowing down.
Tirana is growing fast, with a population increase of 1.54% in 2024. As more people flock to the city, especially to central areas, the demand for housing intensifies, pushing rental yields even higher.
The city is also attracting a wave of expatriates and foreign workers. In 2022, a significant number of work permits were issued in Tirana, drawing in expatriates and digital nomads who favor long-term rentals. This influx is expected to continue, further boosting rental yields.
Central Tirana's appeal isn't just for locals. The vibrant city life, combined with job opportunities, makes it a hotspot for newcomers. This constant demand for city-center living keeps rental prices climbing.
Investors are taking note, as the steady rise in rental yields makes central Tirana an attractive market. With the ongoing demand, it's a promising area for property investment.
Sources: Vox News, European Commission, Altax
7) Demand for affordable rentals near universities in Tirana will grow as more students move in
The influx of students to Tirana is set to drive demand for affordable rental properties near universities.
With 119,000 students enrolled in Tirana's universities last year, the city is buzzing with academic energy. Among them, 19,500 were first-year students, showing a strong push towards higher education. This surge means more students are looking for places to live.
But here's the catch: there's a shortage of student housing in Tirana. By July 2024, only 89.2% of the 200 schools monitored had preleased their housing. This gap is pushing students to hunt for affordable rentals close to their campuses.
Real estate reports are picking up on this trend. The demand for affordable rentals around universities is growing, driven by the increasing student numbers and the lack of available housing. This is a golden opportunity for property investors.
For those considering buying property in Tirana, focusing on areas near universities could be a smart move. The student population is not just growing; it's actively seeking affordable housing solutions.
Investing in rental properties near universities could meet this demand, offering a steady stream of potential tenants. The student influx is reshaping the rental market, making it a prime time to consider property investments in these areas.
Sources: INSTAT, GlobeSt, Albanian Times
8) Demand for properties near Tirana Artificial Lake will grow because of its recreational and green space appeal
The area around the Tirana Artificial Lake is becoming a hot spot for property buyers, thanks to its charm as a recreational and green space.
In recent years, property prices have surged here, with the average price per square meter hitting up to 227,400 Lek. This makes it one of the priciest spots in Tirana. The rise in prices is partly due to new government-approved reference prices, turning the area into a prime investment location.
The Grand Park of Tirana, home to the artificial lake, is a bustling hub for both locals and tourists. It offers a range of activities like walking, cycling, and boat rides, drawing in crowds. The tourism boom in 2023, with a 41% increase in visitors, has boosted foot traffic to the park, making it even more attractive.
There's a clear trend of people moving towards areas with natural amenities. Properties near green spaces are in demand as they promise a better quality of life. This is evident with the development of new residential projects around the lake, likely to lure more buyers due to their closeness to the park.
Government initiatives and media buzz have spotlighted the area's recreational allure. The Albanian government, alongside the EU, is investing in projects to enhance the region's natural beauty and recreational offerings. This increased visibility, coupled with the variety of outdoor activities, is driving up property demand in the area.
Sources: Grand Park of Tirana, Property Price Increase in Albania for 2024, Govt Okay New Property Reference Prices
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) Demand for homes in Tirana will rise as new tax incentives attract first-time buyers
New tax incentives for first-time homebuyers in Tirana are set to shake up the residential market.
With the city's population on the rise, growing by 1.54% in 2024, there's a clear uptick in housing demand. People are leaning towards buying homes, especially since rental prices have skyrocketed by 58% over the past five years. It's becoming more appealing to own rather than rent.
Another boost comes from the Loan Interest Subsidy Program, which reopened in December 2024. This program is a game-changer for young families and couples, making it easier for them to afford homes. Expect a surge in mortgage applications as more folks take advantage of this financial help to step into homeownership.
Property prices in Tirana are climbing, with suburban apartment prices jumping by 14% in 2023. Real estate agencies are buzzing with increased inquiries and viewings, especially in new areas with better services. This shows a growing interest in buying homes, and these tax incentives are likely to push this trend even further.
In Tirana, the residential market is already heating up, and these new tax incentives are like adding fuel to the fire. With more people looking to buy, the demand is set to soar, making it an exciting time for potential homeowners.
Sources: Albanian Daily News, Deloitte
10) Demand for modern apartments in Tirana will rise as young professionals move there for jobs
Tirana is buzzing with young professionals flocking to the city for exciting job opportunities.
Thanks to the booming tech and service sectors, the city is becoming a hotspot for innovation. This growth is fueled by Tirana's smart investments in education and its welcoming pro-business policies, making it a magnet for young talent.
The Albanian government is also stepping up, cutting red tape and offering incentives to tech startups. This has made Tirana an attractive place for businesses, which in turn is creating more jobs and drawing in even more young professionals.
Young Albanians are showing a clear preference for city life, drawn by the job prospects, modern amenities, and vibrant cultural scene that Tirana offers. This trend is sparking a boom in modern apartment developments, as the demand for contemporary housing options is on the rise.
Real estate market reports are backing this up, showing a clear increase in demand for modern apartments. This reflects the influx of young professionals who are eager to find homes that match their urban lifestyle.
With all these changes, Tirana is transforming into a dynamic urban hub, attracting a new generation of residents who are reshaping the city's landscape.
Sources: Eurocities, MGZ
11) Co-living spaces in Tirana will grow to meet the demand for affordable and flexible housing
Co-living spaces are booming in Tirana as people seek affordable and flexible housing.
Rental prices in Tirana have skyrocketed, with some areas seeing increases of up to 58%. This surge has made traditional housing tough to afford, especially for young professionals and digital nomads. They're drawn to Tirana for its lively atmosphere and excellent internet connectivity.
The city's tech and startup scene is thriving, attracting more young professionals and digital nomads. They love energy-efficient, tech-savvy homes, which co-living spaces often provide. With remote work becoming more common in 2023 and 2024, flexible living arrangements like co-living are even more appealing.
Young professionals crave community, and co-living spaces deliver just that, along with affordability and quality service. This trend mirrors what's happening in other European cities like Berlin and Amsterdam, where co-living is expanding to meet similar needs. The Albanian government is also tightening regulations on short-term rentals, pushing people towards more formal housing options like co-living.
In Tirana, co-living spaces are not just about saving money; they offer a sense of community and shared experiences. This is particularly attractive to those who are new to the city and looking to build connections quickly. The rise of co-living is a smart response to the changing housing landscape and the evolving needs of its residents.
As Tirana continues to grow, co-living spaces are set to play a crucial role in providing housing solutions that are both affordable and community-focused. This shift is not just a trend but a necessary adaptation to the city's dynamic and fast-paced lifestyle.
Sources: MagicTowns, E-TJERA, Politiko.al
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12) Property prices in Tirana will keep rising because demand is higher than supply
Tirana's population is booming, and with it, the demand for housing is skyrocketing.
As Albania's bustling capital, Tirana is drawing in both locals and expatriates, creating a vibrant mix of cultures and a surge in residential property demand. This influx is not just about numbers; it's about people seeking a slice of the city's dynamic lifestyle.
Foreign investors are eyeing Tirana's real estate market, eager to tap into its growth potential. This wave of international interest is pushing property prices higher. However, with limited land available for new projects, the city faces a challenge: new housing isn't being built fast enough to meet the growing demand.
The Albanian government is stepping up, enhancing Tirana's infrastructure and public transport. These improvements are making the city more appealing, which naturally boosts property values. It's not just about roads and buses; it's about creating a city where people want to live and invest.
Adding to the mix is a growing middle class with more purchasing power. This demographic shift is further fueling the demand for homes, as more people are able to afford their dream properties in the city.
Sources: European Commission, Telegrafi, World Bank
13) More foreign buyers will invest in Tirana’s luxury real estate as the city becomes more internationally recognized
Foreign buyers are eyeing Tirana's luxury real estate market as the city gains international fame.
In 2024, Albania saw a whopping €1.1 billion in foreign direct investment, with real estate grabbing a 20% slice of the pie. This clearly shows that international investors are keen on Tirana's real estate scene. The city is buzzing with new luxury developments, from sleek apartments to private villas and posh complexes. Thanks to a booming economy and a thriving tourism industry, Tirana is becoming a magnet for high-net-worth individuals.
What's more, luxury properties in Tirana are a steal compared to other European capitals. This makes it a hot spot for foreign buyers looking for a good deal. The Albanian government is rolling out the red carpet with tax incentives and simplified property ownership processes for non-residents. These moves are all about making it easier and more attractive for international buyers to invest in Albanian real estate.
Local developers aren't sitting idle either. They're teaming up with international real estate agencies to put Albania on the map as a luxury real estate destination. This collaboration is boosting foreign interest in Tirana's upscale property market. The city is quickly becoming a go-to place for those looking to invest in luxury real estate.
With all these factors in play, it's no wonder that Tirana is catching the eye of foreign investors. The combination of affordable luxury properties, government incentives, and a growing economy is a recipe for success. As Tirana continues to gain international recognition, the demand for luxury real estate is only expected to rise.
For those considering a property purchase in the country, Tirana offers a unique blend of opportunity and value. The city's real estate market is on the rise, and foreign buyers are taking notice. With its strategic location and attractive investment climate, Tirana is poised to become a major player in the luxury real estate market.
Sources: Albanian Daily News, Statista, Cushman Wakefield
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.