by dfg 
As Albania’s economy grows, several key trends are shaping the real estate market for 2025:
- Foreign Demand in Touristic Areas: Albania’s coastal and heritage locations are seeing a boom
in foreign buyers. In early 2024, 27% of home purchases were by non-residents (vs ~13% in 2022)
. This influx is driving up prices in tourist hotspots. For example, increased tourism spending
(+55% vs. 2019) is pushing coastal property values higher . - Tirana Rental Market Heating Up: More people are moving to cities, especially Tirana. Rental
prices in Tirana have surged (some areas up 58% over five years) . Shortage of supply and
rising urban population (+1.54% in 2024) mean landlords can command higher rents . In
particular, central areas (Blloku, Don Bosko, etc.) report strong rental yields. - Urbanization Effects: Continued migration to cities suggests rural property prices may stagnate
or fall . Cities attract jobs and amenities – Albania’s economy grew ~3.3% in 2024 –
making cities more desirable and keeping rural demand low. - Short-Term Rental Regulations: The government is tightening rules on vacation rentals. New
taxes (e.g. €20–50 per bed annually) and registration requirements are being introduced .
This may slow Airbnb-style investments and ease pressure on long-term rents. - Luxury and Green Developments: Higher-end projects are on the rise. Smart home tech is
becoming a selling point – smart device adoption in Albania is growing ~12% annually .
Developers are also focusing on energy-efficient, LEED-certified buildings to attract premium
tenants. - Tourism-Driven Growth in Secondary Cities: Places like Gjirokastër and Vlorë are emerging as
hot spots. Major investments (e.g. Vlorë airport) and rising tourist numbers (+30% annual growth
on the Riviera) are boosting property demand . For example, new projects in Gjirokastër
(UNESCO site) and Vlorë (coastal tourism) are expected to drive up local real estate values.
Citing data helps illustrate these trends. Investropa’s analysis shows foreign investment, rising rents,
and booming tourism underpinning the market . First-time or savvy buyers should be aware:
central/Tirana markets and tourist areas may offer strong short-term growth, whereas rural regions
may lag.
