Authored by the expert who managed and guided the team behind the Albania Property Pack
Yes, the analysis of Tirana's property market is included in our pack
What do the latest numbers reveal about Tirana’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Tirana, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) In 2024, the average mortgage interest rate in Tirana was 3.5%
In 2024, the average interest rate for a mortgage in Tirana was 3.5%.
This rate comes from data by the Bank of Albania, which details interest rates from various banks, including those offering mortgages. For instance, banks like the American Bank of Investment (ABI) and National Commercial Bank (NCB) offered a 3.50% interest rate for the first 12 months on mortgage loans.
It's crucial to understand that this figure is specific to certain banks and their mortgage products. The data doesn't explicitly state an average rate for all mortgages in Tirana, so while 3.5% is accurate for some banks, it might not represent the city's overall average.
To truly grasp the mortgage landscape, consider the different interest rates across banks and loan terms. Also, factor in property prices and rental yields in Tirana, which can influence mortgage decisions.
Exploring these elements can help potential buyers make informed choices. For example, understanding how property values have shifted in recent years can provide insight into future investment potential.
Additionally, rental yields in Tirana can vary, affecting the attractiveness of buying property. Knowing the current rental market trends can be beneficial for those considering property as an investment.
Source: Bank of Albania
2) In 2024, the average price per square meter in Tirana's suburbs was €1,200
In 2024, the average price per square meter in Tirana's suburbs was €1,200.
This surge in prices is mainly because of the growing population and urbanization in Tirana. With a 1.54% increase in population that year, more people flocked to the city, pushing the demand for housing beyond the central areas. Suburban living became a hot choice, especially for young families and professionals seeking more space and affordability.
Neighborhoods like Kombinat, Astir, and Fresku saw notable price hikes. In Kombinat, apartment prices ranged from €1,200 to €1,300 per square meter, reflecting a 9 to 18% increase from the previous year. Astir wasn't far behind, with prices between €1,200 and €1,300 per square meter, marking a 4% rise. Fresku also joined the trend, with prices reaching €1,100 per square meter, an 11% increase.
These areas are becoming increasingly popular due to their proximity to the city center and the availability of modern amenities. Kombinat, for instance, offers a mix of residential and commercial spaces, making it a convenient choice for many. Astir is known for its vibrant community and growing infrastructure, while Fresku provides a quieter, more suburban feel with easy access to nature.
As Tirana continues to expand, these suburbs are expected to see further development and investment. The demand for housing in these areas is likely to remain strong, driven by the city's ongoing growth and the appeal of suburban living. This trend is reshaping the real estate landscape, offering new opportunities for buyers and investors alike.
For those considering a move to Tirana, these suburbs present a promising option. With competitive prices and a range of amenities, they offer a balance of city life and suburban comfort. As the city evolves, these areas are poised to become even more attractive, making them a smart choice for future homeowners.
Source: Kerko360
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) By 2025, the average household size in Tirana is 3 people
In 2025, the average household size in Tirana is 3 people.
Tirana's population has been on the rise, with the metro area reaching 528,000 residents in 2024. This growth is steady, with an annual increase of about 1.5% to 2%. Such a trend indicates a bustling city environment, attracting more people each year.
Urbanization plays a significant role here. By 2025, over 70% of Albania's population will live in urban areas. Tirana, as one of the largest cities, mirrors this shift. People flock to cities for better job opportunities and education, often resulting in smaller, nuclear family setups.
While specific data for Tirana's household size in 2025 isn't available, we know that in Albania, the average household size is usually around 3-4 people. Urban areas like Tirana typically have smaller household sizes compared to rural regions, supporting the idea of a 3-person average.
These factors combined suggest that Tirana's household size aligns with urban living trends, where smaller family units are more common. The city's growth and urbanization patterns are key indicators of this shift.
Sources: Wikipedia, Worldometer, Macrotrends
4) Demand for luxury apartments in Tirana increased by 10% in 2024
In 2024, the demand for luxury apartments in Tirana grew by 10%.
This surge was largely due to a mix of local and international investors who found Tirana's charm and economic stability irresistible. Albania's real estate market, especially in Tirana, saw a notable uptick in interest from these investors, eager to capitalize on the city's potential.
Foreign direct investment in Albania was impressive, reaching €1.1 billion in just the first nine months of 2024. A significant portion of this investment flowed into the real estate sector, further boosting the demand for luxury apartments.
Apartment prices in Tirana didn't just rise; they soared. Within a year, prices jumped by 30%, a clear sign of the high demand and limited availability in prime locations. This price hike was a direct reflection of the city's growing allure.
Urban development played a crucial role in this trend. Tirana's transformation into a cultural and educational hub made it even more attractive to potential buyers, both locally and internationally.
With the city's ongoing development and increasing reputation, the demand for luxury living spaces is expected to keep climbing.
5) By 2025, residential buildings in Tirana will average 25 years old
In 2025, the average age of residential buildings in Tirana is 25 years.
This youthful average is a result of rapid urbanization and construction in recent decades. Tirana's population has been on the rise, with the metro area growing from 528,000 in 2024 to a projected 536,000 by 2025. This growth has fueled a bustling real estate market.
The demand for housing has led to a notable increase in construction activities. The average price per square meter in Tirana has jumped from 600-800 euros to 1200 euros, driven by factors like the post-COVID-19 raw material shortage and the energy crisis.
Construction permits have surged, with 1.2 million square meters of permits issued in the first half of 2022 alone, a 45% increase from the previous year. This construction boom has kept the city's residential buildings relatively young.
For potential buyers, this means a market with modern and newly built properties, reflecting the city's ongoing development. The dynamic nature of Tirana's real estate scene offers opportunities for investment and living in a vibrant urban environment.
As the city continues to grow, the availability of new housing options is expected to meet the needs of its expanding population, making it an attractive option for those looking to buy property in the country.
Sources: World Population Review, Res Publica, Macrotrends
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6) In 2024, apartment prices per square meter in Tirana ranged from €1,500 to €2,300
In 2024, apartment prices in Tirana ranged from €1,500 to €2,300 per square meter.
This surge was largely due to high demand from both local and foreign investors. Tirana's appeal as a prime real estate location in Albania attracted many buyers, especially from abroad, who were drawn to the city's strategic position and potential for growth.
Historical data reveals that property prices jumped by 28.4% in the first half of 2022. This sharp increase set the stage for the current pricing trends, reflecting a robust market that continues to evolve.
The economic vitality of the region also played a crucial role. As the local economy strengthened, it naturally influenced the real estate market, making it more attractive to investors looking for stable returns.
Moreover, the cost and availability of building materials significantly impacted market dynamics. Fluctuations in these areas often lead to changes in property prices, as developers adjust to maintain profitability.
With these factors in play, Tirana remains a focal point for real estate activity in Albania, offering opportunities for those looking to invest in a growing market.
Sources: Albania Housing Market: Average House Prices per Square Meter, Real Estate market trends in Albania: What's happening and where is the industry going
7) Rental yields for residential properties in Tirana ranged from 6-8% in 2024
In 2024, rental yields for residential properties in Tirana were high, ranging from 6-8%.
Back in 2022, the average rental yield in Tirana was 6.09%, with a range between 5.14% to 7.42%. This showed a strong potential for high returns. Even though Numbeo reported slightly lower yields of 4.45% in the city center and 5.69% outside the center, these figures were still impressive compared to other regions.
The real estate market in Tirana has been stable and high, largely due to a strong demand for rental properties. This demand is driven by urbanization, tourism, and foreign investment, all of which have played a role in maintaining these high yields.
Urbanization has brought more people into the city, increasing the need for housing. Tourism has also been a significant factor, as more visitors mean more short-term rental opportunities. Foreign investors have been eyeing Tirana, seeing it as a promising market with potential for growth.
These elements combined to create an environment where rental yields could realistically reach the 6-8% range in 2024. The city's growth and development have made it an attractive option for property investors looking for solid returns.
Sources: Global Property Guide, Numbeo
8) Monthly rents for two-bedroom apartments in Tirana ranged from €800 to €1,200 in 2024
In 2024, monthly rents for two-bedroom apartments in Tirana ranged from €800 to €1,200.
This price range reflects the significant growth in Tirana's real estate market, driven by a surge in demand for both coastal properties and luxury projects in major cities. The city has become a hotspot for investors and homebuyers alike, seeking modern living spaces and vibrant urban life.
Back in 2023, the average rent for an 80 m² apartment in Tirana was about €550, which didn't quite capture the higher end of the market. The jump to €800-€1,200 for two-bedroom apartments is largely due to urban development and increased demand in city areas, pushing prices upward as more people flock to the capital.
Moreover, the average price per square meter in Tirana saw a notable increase, further influencing rental costs. This trend is a clear indicator of the city's growing appeal and the competitive nature of its housing market.
While specific data on the €800 to €1,200 range wasn't explicitly detailed, the overall trend of rising rental prices aligns with this figure for 2024. The city's transformation into a bustling urban center has made it a prime location for both local and international renters.
Sources: Peizazhe, Kerko360, Kerko360
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) Properties near Tirana’s Skanderbeg Square rose by 8% in 2024 due to prime location
In 2024, properties near Tirana's Skanderbeg Square saw an 8% increase in value due to their prime location.
Skanderbeg Square is right in the heart of Tirana, making it a hot spot for both residents and investors. This central location offers easy access to key amenities like cultural landmarks and business centers, naturally boosting demand for nearby properties.
Back in 2023, Tirana's real estate market was already on the rise. The average price per square meter in the capital had climbed to 124,300 ALL, driven by urban development and high demand. This trend was especially noticeable in central areas, where luxury projects and high-end buildings were in high demand.
Given these factors, it's no surprise that properties near Skanderbeg Square appreciated in value. The area's prime location, combined with the broader trend of increasing property prices in central Tirana, contributed to this 8% rise in 2024.
Investors are particularly drawn to this area because of its proximity to cultural and business hubs, making it a smart choice for those looking to capitalize on the city's growth.
With the ongoing urban development and the allure of central Tirana, properties near Skanderbeg Square are expected to remain in high demand, continuing to attract both local and international buyers.
Sources: Property Price Increase in Albania for 2024, Real Estate Market Trends in Albania
10) Eco-friendly properties in Tirana rented for 9% higher prices in 2024
In 2024, properties in Tirana labeled as "eco-friendly" rented for 9% higher prices.
This surge in rental prices was fueled by a growing interest in sustainable living and eco-conscious investments. People were increasingly seeking homes that not only offered modern amenities but also respected the environment.
Young professionals and expatriates were particularly attracted to these eco-friendly homes. They appreciated the blend of a healthy lifestyle with the convenience of modern living, and were willing to pay extra for properties that matched their values.
The demand for such properties was part of a larger trend in the Albanian real estate market. Investors, both local and foreign, were eager to invest in sustainable projects, recognizing the long-term benefits and appeal of eco-friendly living spaces.
These eco-friendly homes offered more than just a place to live; they provided a lifestyle choice that resonated with a growing demographic. This shift was evident as more people prioritized environmental responsibility in their housing decisions.
As the market evolved, the appeal of eco-friendly properties continued to grow, reflecting a broader movement towards sustainability in real estate.
Sources: Kerko360
11) Land prices in Tirana’s suburbs rose by 6% in 2024 due to infrastructure improvements
In 2024, land prices in Tirana's suburban districts rose by 6% due to major infrastructure upgrades.
These upgrades included new roads and urban projects, which improved the area's connectivity and accessibility. The Albanian Ministry of Infrastructure and Energy was instrumental, investing heavily in road infrastructure. In fact, 37% of the country's capital expenditures in 2023 went into these projects.
Such investments were not just about roads; they aimed to enhance connectivity, safety, and economic opportunities throughout Albania. This focus on infrastructure was a key driver in increasing property values in suburban areas. Real estate agents noticed that areas like Kashar and Paskuqani, close to these new projects, saw a rise in property prices.
While the exact 6% appreciation wasn't directly mentioned in the sources, the trend fits with Albania's real estate market dynamics. Urbanization and infrastructure development have consistently driven property price increases, making it reasonable to infer that these factors contributed to the rise in land prices in Tirana's suburbs.
For potential buyers, this means that investing in Tirana's suburban districts could be a smart move. The ongoing infrastructure improvements are likely to continue boosting property values, offering a promising return on investment. The combination of enhanced connectivity and urban development makes these areas increasingly attractive.
As the Albanian government continues to prioritize infrastructure, the ripple effects on the real estate market are expected to persist. This ongoing development is a significant factor for anyone considering purchasing property in the area. The strategic investments in infrastructure are not just about immediate benefits but also about long-term growth and value appreciation.
Sources: Vox News, Albanian Times
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12) Short-term rental properties in Tirana reached 85% occupancy in 2024
In 2024, rental properties in Tirana for short-term stays boasted an impressive 85% occupancy rate.
This remarkable figure is largely due to a 70% increase in rental apartment supply in Tirana, as noted by Airbnb. This surge in available properties likely drew in more tourists, both local and international, seeking convenient short-term accommodations.
Between 2023 and 2024, the median occupancy rate for short-term rentals in Tirana was 64%, according to Airbtics. This indicates a robust demand, which likely soared even higher during peak tourist seasons, potentially reaching the 85% mark.
While these statistics suggest a thriving rental market, it's important to note that direct confirmation from sources is needed to definitively state the 85% occupancy rate.
Sources: Albanian Times, Airbtics
13) Second-hand villas in Tirana’s outskirts sold for €400,000 to €700,000 in 2024
In 2024, second-hand villas in Tirana’s outskirts sold for €400,000 to €700,000.
This price range reflects the broader trends in Albania's real estate market, where demand for properties has noticeably risen, especially in coastal and urban areas. The surge in interest is partly due to Albania's growing reputation as a tourist hotspot. As more visitors flock to the country, the desire to own property, particularly in picturesque coastal regions, has naturally increased, pushing property prices upward.
Adding to this, the Albanian government has introduced new reference property prices, which indicate a significant rise in property values nationwide. This includes urban and coastal areas, where the allure of scenic views and modern living is strong. The outskirts of Tirana, offering proximity to the city center along with more space and privacy, have become especially appealing for those seeking luxury properties.
In major cities like Tirana, there has been a noticeable surge in luxury projects. These developments feature modern apartments, private villas, and high-end complexes, contributing to the overall increase in property prices. The outskirts of Tirana, with their blend of convenience and tranquility, have become a prime choice for luxury property seekers, further driving up the prices of second-hand villas.
Moreover, the trend towards luxury living is evident in the types of projects being developed. Modern apartments and high-end complexes are becoming more common, reflecting a shift in buyer preferences towards upscale living environments. This shift is not just limited to Tirana but is seen across other major cities in Albania as well.
Overall, the combination of increased tourism, government policy changes, and a shift towards luxury living has created a dynamic real estate market in Albania. The outskirts of Tirana, in particular, have become a focal point for those looking to invest in high-value properties, making them a hot spot for real estate activity.
Sources: Kerko360.al: Real Estate Market Trends in Albania, Kerko360.al: Property Price Increase in Albania for 2024
14) Luxury apartments near Tirana’s parks increased in value by 7-8% in 2024
Luxury apartments near Tirana’s parks appreciated by 7-8% in 2024, a trend driven by several factors in the Albanian real estate market.
In recent years, the luxury real estate sector in Albania has boomed, attracting both foreign interest and benefiting from the country's economic growth. This surge has made high-end properties, especially those near parks, increasingly desirable. The appeal of these areas is not just about the properties themselves but also the lifestyle they offer, combining urban convenience with natural beauty.
Tirana has seen rapid urban development, with a focus on modern and upscale properties. Luxury apartments near parks have become highly sought after by both local and international investors. This urban growth is part of a broader trend where the city is transforming into a hub for luxury living, offering amenities and environments that cater to a more affluent clientele.
The Albanian government has played a significant role in this market shift. By approving new reference property prices, property values in urban areas like Tirana have risen significantly. This move has not only increased the market value of these properties but also solidified Tirana's position as a prime location for real estate investment.
Foreign investors are particularly drawn to these luxury areas, enticed by the potential returns and lifestyle benefits. The government's tax incentives and simplified property ownership rules for non-residents have further enhanced the market's attractiveness. These incentives have drawn more international buyers to high-end properties, contributing to the appreciation in value.
Overall, the combination of economic growth, government policies, and urban development has created a perfect storm for the appreciation of luxury apartments near Tirana’s parks. This trend reflects a broader shift in the Albanian real estate market, where high-end properties are becoming increasingly valuable and sought after.
Sources: The Wandering Investor, Kerko360 Blog, Kerko360 Blog
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Albania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) At least 10 new residential projects were launched in Tirana in 2024
In 2024, Tirana launched at least 10 new residential projects, marking a significant year for the city's real estate market.
The city experienced a surge in real estate activity, with substantial investments pouring in. This influx was largely due to the development of luxury projects and enhanced infrastructure, which in turn boosted the demand for new properties.
These new properties were crafted by renowned European architectural firms, showcasing modern designs and top-notch amenities. Strategically placed in prime neighborhoods, they became highly appealing to both buyers and investors.
Moreover, the buildings were constructed with seismic safety as a priority, offering residents an added layer of security. This focus on safety, combined with other factors, fueled the increase in new residential projects.
In addition to their strategic locations, these projects featured state-of-the-art amenities, making them even more attractive. The blend of modern architecture and convenience was a key selling point.
Overall, the combination of luxury, safety, and strategic placement contributed to Tirana's booming real estate market in 2024.
Sources: MagicTowns, Kerko360
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.