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 is happening in Tirana’s real estate market? Are prices on the rise or decline? Is Tirana still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling streets of Blloku to the serene outskirts of the city. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Tirana real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Rental yields in central Tirana will stay stable with ongoing demand for rental properties
Rental yields in central Tirana are expected to stay steady thanks to a few key factors.
First off, there's been a noticeable rise in demand for rental properties. Over the past few years, rental prices in Tirana have shot up, with 1+1 apartments seeing a 61% rent hike and 2+1 apartments experiencing a 45% increase. This trend is especially strong in central areas, where urban living is in high demand.
Another factor is Tirana's growing population and urbanization. In 2024, the city's population grew by 1.54%, which naturally boosts the need for housing. As Tirana expands, the demand for rental properties keeps climbing, helping maintain stable rental yields. Plus, Tirana's reputation as a cultural and educational hub attracts young talent, further driving up rental demand.
Tourism is also a big player in keeping rental yields stable. In 2024, foreign tourist arrivals to Albania increased by 17%, with Tirana airport handling a large number of passengers. This influx, especially from southern Europe, fuels the demand for short-term rentals, adding to the rental market's stability.
Moreover, many Albanians living abroad are investing in property back home. This trend adds to the demand for real estate in Tirana, supporting the rental market's steadiness. It's a cycle where more investment leads to more demand, which in turn keeps rental yields stable.
Sources: Airbtics, Albanian Daily News, Skift
2) Central Tirana rents will increase slightly with strong demand
Rental prices in Tirana have surged dramatically in recent years.
In the heart of Tirana, the demand for housing is booming, especially for 1+1 and 2+1 apartments. These types of accommodations are highly sought after, with rents for 1+1 apartments jumping by 61% and 2+1 apartments by 45%. This shows just how much people want to live in these central spots.
One reason for this demand is Tirana's growing population. In 2024, the city saw a 1.54% increase in residents. More people means more need for housing, and with not many new buildings going up in the city center, the competition for available apartments is fierce.
Central Tirana is a vibrant area, attracting both locals and newcomers. The limited new housing developments mean that existing properties are in high demand. This keeps the rental market competitive and prices on the rise.
For those considering buying property, it's important to know that rents in central Tirana will likely continue to rise as demand remains strong. The city's appeal and the lack of new housing options contribute to this trend.
Investing in property here could be a smart move, given the ongoing demand and the city's growth. With the current market dynamics, owning a rental property in Tirana could be quite profitable.
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) More international real estate agencies will establish in Tirana due to rising demand from foreign buyers
The demand from foreign buyers is reshaping Tirana's real estate market.
In 2024, foreign direct investment in Albania's real estate hit €1.1 billion, with 27% of homes bought by foreigners, especially in Tirana and along the coast. This shows how much Tirana is catching the eye of international investors.
The Albanian government is making it easier for foreigners to buy property by offering tax breaks and simpler ownership rules. These perks are drawing international real estate agencies to Tirana, eager to tap into the growing interest from abroad.
The luxury real estate market in Albania is thriving, thanks to increased interest from international investors. Tirana stands out with its potential for high returns and a desirable lifestyle, making it a hotspot for these investors.
Multinational companies are setting up offices in Tirana, which signals a booming expatriate community and a rising need for international real estate services.
Sources: Balfin Real Estate, Luxury Tribune, Trimont
4) Suburban areas will attract more foreign investors for their better growth potential
Foreign investors are eyeing Tirana's suburbs for their promising growth potential.
In recent years, property prices in central Tirana have skyrocketed, reaching up to 3,500 euros per square meter. Meanwhile, suburban areas like Paskuqani and Kashar offer a more budget-friendly option, with prices hovering around 950 to 1,000 euros per square meter. This significant price gap makes the suburbs a magnet for investors seeking better value.
Suburban areas are not just about affordability; they are also seeing a boom in infrastructure. Thanks to the Tirana Boulevard Masterplan, public transport options have expanded, including BRT and LRT lines, making these areas more accessible. This improved connectivity is a game-changer, drawing in both residents and investors.
The Albanian government is sweetening the deal with incentives like tax breaks and simplified property ownership rules for foreigners. These perks make suburban real estate investments even more appealing. On top of that, rental yields in these areas are climbing, with some suburbs seeing a 58% hike in rental prices over the past five years.
Investors are noticing that suburban areas offer a blend of affordability and growth, making them a smart choice. The combination of lower prices, better infrastructure, and government incentives is hard to resist.
As Tirana continues to develop, the focus on suburban areas is expected to intensify, offering a fresh landscape for investment opportunities.
5) Foreign buyers will increasingly target Tirana for its favorable investment conditions
Foreign buyers are increasingly eyeing Tirana as a prime spot for investment.
With property prices soaring in other European capitals, Tirana stands out as a more affordable option. The city's charm is growing, thanks to its emerging status as a cultural and economic hub in the Balkans. This has led to a high demand for properties, and experts predict prices will continue to rise in 2023 and 2024.
Getting to Tirana is easier than ever, with more international flights landing in the city. This accessibility is a big draw for expatriates and international students who are flocking to Tirana for its opportunities and vibrant lifestyle. The Albanian government is also stepping up, enhancing infrastructure and public transport to make the city even more livable.
Investors are particularly interested in Tirana because of its high rental yields, averaging 6.09%. Some areas even offer returns between 5.14% and 7.42%. This is largely due to the influx of international students and expatriates who are driving up the demand for rental properties.
Albania's economy is on the rise, with GDP growth rates of 8.1% in 2021 and 6% in 2022, which helps keep rental yields stable. This economic growth is a reassuring sign for investors looking to capitalize on Tirana's real estate market.
Sources: Tirana Times, CEIC Data
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6) Updated property tax laws will impact the appeal of certain neighborhoods for investors
Changes in property tax laws can make some neighborhoods less appealing to investors.
In Tirana, the Albanian government recently hiked the reference market prices for real estate, causing a 53% jump in average reference prices in the city. This has led to a noticeable increase in property tax rates, making it more expensive to own and sell property.
Before these tax hikes, Tirana's real estate market was booming thanks to favorable economic and demographic conditions. Now, however, the new property tax laws have created a deadlock in property sales and shifted demand towards new constructions outside the city. Selling an apartment has become pricier, with citizens facing a 35% higher cost to sell their properties.
Investors are worried about how these increased property taxes will affect their investments. The head of the Albanian National Association of Real Estate pointed out that the new reference prices have caused a stalemate, indirectly placing a heavier tax burden on property owners. In particular, the New Ring area in Tirana saw the largest increase in reference prices, with a 76% rise, likely influencing investment trends there.
These changes are reshaping the real estate landscape in Tirana, pushing investors to reconsider their strategies. The increased costs and tax obligations are making some neighborhoods less attractive, while others outside the city are gaining attention.
Sources: KPMG United States, Ina Media, Citizens Channel
7) Demand for international-standard housing will rise with the growing expatriate community
The growing expatriate community in Tirana is driving up the demand for international-standard housing.
In 2023, the number of foreigners with residence permits in Albania jumped by 18.2%, reaching 21,460 by year-end. This surge is part of a broader trend, with over 616,000 foreigners entering Albania in December 2023 alone, marking a 57.6% increase compared to December 2022. Such numbers highlight the increasing allure of Albania, especially Tirana, for international residents.
Foreign direct investment in Albania's real estate market is booming, with €1.1 billion invested in the first nine months of 2024. Real estate made up 20% of these investments, and foreign buyers snapped up 27% of homes sold in the first half of 2024, focusing on Tirana and the scenic coastal areas. This influx of cash and interest is a clear sign that international-standard housing is in high demand.
Multinational companies are setting up shop in Tirana, drawing more expatriates and further boosting the need for quality housing. New residential projects are popping up, specifically targeting expatriates, and government policies are making it easier for foreigners to invest in real estate. This combination is making the market more accessible and attractive to international buyers.
With the rise of these new developments and policies, Tirana is becoming a hotspot for those seeking a blend of modern living and cultural richness. The city is evolving, and the real estate market is keeping pace, offering more options that meet international standards.
Sources: INSTAT, Euronews Albania, Albanian Times
8) Property values in Sauk will rise as it becomes a favored spot for luxury homes
The Sauk area is quickly becoming a hotspot for luxury homes.
One big reason for this is the rising demand in Tirana, fueled by a booming economy and interest from foreign investors and expats. Sauk stands out because it offers a unique blend of natural beauty and city convenience, making it a top choice for those looking to invest in high-end properties.
There's also been a lot of money poured into infrastructure and amenities in Sauk. New parks and green spaces are popping up as part of Tirana's plan to boost green areas, which makes Sauk even more appealing to potential buyers.
When you look at recent sales data, Sauk's property prices are on the rise. In 2024, the maximum selling price for new buildings in the Kinostudio-Porcelan areas hit 1,300 euros per square meter, while in Sauk, prices hover around 1,000 euros per square meter. This shows a strong market for luxury homes in Sauk.
These factors combined suggest that Sauk is not just a passing trend but a solid investment opportunity. The area's mix of modern amenities and natural landscapes is drawing in more buyers, which is likely to push property values even higher.
As Sauk continues to develop, it’s becoming clear that this area is set to become a preferred location for those seeking luxury living in Tirana.
We made this infographic to show you how property prices in Albania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Blloku will experience increased demand for its lively nightlife and cultural attractions
The Blloku neighborhood is buzzing with excitement as it becomes a top choice for property buyers, thanks to its lively nightlife and rich cultural scene.
One major draw is the Blloku Cube, a multi-functional complex that has transformed the area into a commercial and cultural hotspot. With its retail outlets, offices, and a stunning roof garden restaurant, the Cube has turned Blloku into a bustling hub, attracting both visitors and potential residents.
The neighborhood is particularly popular among young professionals and expatriates, which has led to a rise in rental yields. Places like Dutch Hub and Destil offer coworking spaces that cater to creative entrepreneurs and international artists, adding to the area's dynamic vibe and making it a sought-after place to live.
Social media and media coverage have also played a big role in putting Blloku on the map as a cultural hotspot. Instagram and Facebook posts frequently showcase the area's vibrant nightlife and cultural events, drawing more attention and interest from potential residents and visitors.
As more people discover Blloku's unique charm, the demand for property in the area is expected to grow. The neighborhood's mix of modern amenities and cultural attractions makes it an appealing choice for those looking to invest in a lively and evolving community.
With its increasing popularity and diverse offerings, Blloku is set to become one of the most desirable areas for property buyers. The combination of a thriving social scene and a welcoming atmosphere ensures that Blloku will continue to attract a wide range of people.
Sources: Stefano Boeri Architetti, Designboom, Digital Nomads World
10) Rental yields in suburban areas will rise as more people relocate from city centers
People are increasingly choosing to live in suburban areas over city centers.
In Tirana, this shift is clear as rental yields in suburban areas have been rising. The surge in apartment prices in central Tirana, which have jumped by 30% in just a year, is pushing folks to seek more affordable options outside the city center. This makes suburban living not only attractive but also a smart financial move.
Suburban areas offer more space and a better quality of life, which is a big draw for many, especially remote workers. These areas provide the amenities and services people want, often at a lower cost. The Albanian government has been working on improving infrastructure and public transport, making these areas more accessible and appealing.
There's also a noticeable influx of expatriates and digital nomads into Tirana, which is boosting demand for suburban rentals. These groups are drawn by the affordable living costs and reliable internet connectivity, making suburban areas a top choice for their housing needs. Government incentives, like tax breaks for digital nomads, are further encouraging this trend.
As more people move away from the city center, suburban areas are seeing an increase in rental yields. This trend is expected to continue as the demand for suburban living grows, driven by both local and international interest.
Sources: Politiko, Albanian Daily News, Euronews Albania
11) Suburban property prices will rise significantly as people look for more space and affordability
In recent years, more people are choosing to live in suburban areas like Tirana.
The rise of remote work, especially since 2023, has encouraged many to look for larger living spaces. Suburban areas offer more room compared to the crowded city center, making them ideal for those seeking space and affordability.
Central Tirana's property prices have become too high for many families, with costs often exceeding 2,000 euros per square meter. In contrast, suburban areas like Paskuqan offer more affordable options, often below 1,000 euros per square meter, attracting homebuyers looking for better deals.
The population in suburban areas is growing steadily, with a 1.55% annual increase, indicating a strong preference for these locations. Real estate agents have noticed this trend, as more people opt for the reasonable prices found outside the city center.
Infrastructure improvements have made suburban living more appealing. Better roads and connectivity mean that living outside the city doesn't mean being disconnected. For instance, new residential buildings near the Paris Commune have seen apartment prices between 2,300 and 2,500 euros per square meter, reflecting their increased desirability.
Suburban areas are also seeing new amenities and services, enhancing the quality of life for residents. Areas like Paskuqan and Yzberish are becoming more developed, attracting those who want a better lifestyle outside the hustle and bustle of the city center.
Sources: Vox News, World Population Review
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12) Short-term rental yields will rise as tourism recovers and more visitors opt for residential stays
Tourism in Albania is booming, especially in vibrant cities like Tirana.
In 2023, Albania welcomed 10.1 million tourists, marking a 35% increase, with Tirana being a major hotspot. By mid-2024, foreign visitors reached 4.5 million, up from 3.4 million the previous year.
This influx of tourists is boosting short-term rental occupancy. While exact numbers aren't available, the trend is evident from the growing number of Airbnb listings and glowing reviews. As more travelers opt for residential stays, hosts can expect to charge higher average daily rates.
Travelers are increasingly favoring residential stays over hotels, seeking authentic local experiences. This shift is evident in the 77% rise in available apartments in Vlorë from 2019 to 2022, highlighting the growing preference for short-term rentals.
With tourism on the rise, short-term rental yields are set to increase as more visitors choose these unique accommodations. The demand for residential stays is reshaping the hospitality landscape, offering lucrative opportunities for property owners.
Sources: Albanian Daily News, Luxury Tribune, Visit Tirana
13) Tirana’s property prices will rise moderately with steady demand
Residential property prices in Tirana have been on the rise, showing a steady demand in the market.
In the past couple of years, house prices in Tirana jumped by 11.6% over six months and saw a 13.3% increase compared to earlier periods. This upward trend is a clear sign of the city's growing appeal. With more people moving to Tirana, the demand for homes is naturally climbing.
The city's population grew by 1.54% in 2024, which has given a boost to the rental market. As Tirana expands, the need for housing is on the rise, pushing property prices higher. This urban growth is a key factor in the real estate market's momentum.
Albania's economy is stable, leading to higher incomes and more purchasing power for its residents. This economic strength is a driving force behind the demand for homes. The government's efforts to attract foreign investment and tourism have also made Tirana a hotspot for investors, further energizing the real estate scene.
Investors are particularly interested in Tirana due to its strategic location and potential for growth. The city's development plans and infrastructure improvements are making it an attractive place to buy property. This is a city on the move, and the real estate market is reflecting that energy.
With these factors in play, it's no surprise that Tirana's property market is experiencing moderate growth. The combination of urbanization, economic stability, and government initiatives is creating a perfect storm for rising property values.
Sources: MIC Hub, Telegrafi, Grimshaw
14) Luxury rental yields will drop due to an oversupply
Tirana's luxury property market is booming with new developments popping up everywhere.
When there's an oversupply of luxury homes, vacancy rates often rise, leaving many properties empty. This trend was evident in 2024 when upscale apartments saw a drop in rent growth, signaling more available properties than tenants.
In Tirana, luxury apartment prices have skyrocketed to 4,000 euros per square meter. But this surge is more about construction than actual demand. When supply outpaces demand, rental yields can fall because there aren't enough tenants willing to pay those high rents.
Colliers International Albania notes that a large central area in Tirana is slated for development, potentially leading to market saturation. This means more luxury properties than renters, pushing yields down further.
For potential buyers, it's crucial to understand that luxury rental yields might decline due to this oversupply. The market is filled with options, but not enough renters to match.
As more properties flood the market, investors may face challenges in maintaining high rental returns. This oversupply could reshape the rental landscape in Tirana.
Sources: Magic Towns, Class Lifestyle, Globest
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) Luxury property prices in Tirana will rise more slowly than mid-range properties
In Tirana, mid-range properties are in high demand as young people and families look for affordable housing options.
Even though there are many construction permits, the supply of mid-range homes isn't meeting the demand. On the other hand, luxury properties are being built rapidly, which might lead to too many high-end homes on the market.
With Albania's economy growing in 2021 and 2022, the middle class has more purchasing power, making mid-range homes more appealing. The government is also offering incentives to help new families buy these homes, further increasing interest in this segment.
Rental yields for mid-range properties in Tirana are on the rise because they are affordable and come with modern amenities. This, along with a growing urban population, shows that mid-range housing is becoming more popular.
Reports suggest that the luxury property market in Tirana is getting crowded, which could mean slower price increases for luxury homes. This saturation might also lead to longer sales times for luxury properties, unlike the expected growth for mid-range homes.
Sources: Citizens.al, Euronews.al
16) Green spaces and parks will significantly boost property desirability
Green spaces and parks are becoming a hot commodity in urban real estate.
In bustling cities like Tirana, where urbanization is on the rise, the need for recreational areas is more pressing than ever. With the city's population density soaring to nearly 11,000 people per square kilometer, the demand for green spaces has skyrocketed. This isn't just about aesthetics; it's about creating breathing room in a concrete jungle.
Access to parks isn't just a luxury; it's a health booster. Studies highlight that green spaces can improve air quality and curb urban sprawl, leading to healthier lifestyles. Tirana's Green City Action Plan is a testament to this, focusing on making the city more livable by expanding green areas and reclaiming public spaces.
Living near parks isn't just good for your health; it's good for your wallet. Properties close to green spaces are seeing a bump in value, proving their desirability. Take Tirana's central city square, for instance, which was transformed into a pedestrian haven, boosting nearby property values. Government initiatives like TIRANA2030 are backing these changes, emphasizing landscape recovery and balanced urban growth.
Public awareness is catching up, thanks to media coverage and community movements. Articles and campaigns are shining a light on Tirana's green initiatives, swaying public opinion. Community projects like pocket parks are gaining traction, showing that people are eager to support these green efforts. Real estate trends and social media buzz are also reflecting a growing preference for homes with nature access.
For potential property buyers, this means that green spaces are not just a perk but a priority. As urban areas continue to grow, proximity to parks will be a key factor in property desirability. It's not just about buying a home; it's about investing in a lifestyle that values nature and well-being.
Sources: UCL Discovery, CEEweb
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.