Why Foreigners Are Investing in Albanian Real Estate

  • dfg by dfg
  • 3 months ago
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Albania’s attractive property market is luring many international investors:

  • Affordable Prices: Real estate in Albania remains much cheaper than in Western Europe. For
    example, a seaside villa in Sarandë can be found for ~€100,000, whereas similar homes in Italy or
    Greece cost €300,000+ . A 2-bedroom flat in Tirana can be bought for around €70,000 .
    This low entry point means significant upside potential as prices rise (expected 3–7% annual
    growth through 2027 ).
  • High Rental Yields: Thanks to booming tourism, Albanian properties can yield impressively. In
    Sarandë, Durrës, and Vlorë, vacation rentals can generate 8–10% annual return in high season
    . One example: a €100,000 Sarandë apartment might earn €1,500/month in summer (≈15%
    yield ). These yields are hard to match in saturated markets like Western Europe.
  • EU Integration & Infrastructure: Albania’s EU candidacy is spurring big infrastructure projects
    . The new Vlora airport (opening 2025) will improve access to the Riviera, likely boosting
    property values 20–30% nearby . Adoption of EU legal standards will stabilize the market.
    Overall economic growth (3%+ GDP rise) supports a healthy real estate outlook.
  • Low Taxes and Simple Process: Albania’s tax regime favors investors. Property tax is only 0.05–
    0.2% annually and rental income tax a flat 15% . Compared to higher taxes elsewhere,
    investors keep more profit. Foreigners face few purchase restrictions and a straightforward 4–8
    week buying process .
  • Quality of Life: The Mediterranean climate and lower cost of living mean an enjoyable
    lifestyle. Coastal cities offer warm summers and mild winters, making year-round use easy. The
    combo of beautiful beaches, affordable daily expenses, and friendly culture makes Albania an
    ideal place for a vacation home or retirement.

In short, Albania offers a rare blend of low prices, strong yields, improving infrastructure, and high
quality of life . As one property guide concludes: “buying a second home in Albania is a smart
investment in 2025” .

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