How much does property cost in Albania? Which apartments are now more in demand on the market? How is it possible for a foreigner to purchase an object and profit from it? The actual analysis of the market from the realtor is further in the article.

The real estate market in Albania is now experiencing, perhaps, its best time: over the past year, investment by foreigners in real estate rose by 52% to €291 million. This is encouraged as well as under the law “On Foreigners,” according to which residence permits for Albania can be obtained by investments (including property purchase).

Adrian Hoxha, the real estate agent in Albania, explained to us how the country's real estate market has changed recently, what kinds of apartments are most in demand, and how a foreigner can purchase a property and then obtain a residence permit.

“Real estate prices have been rising continuously for about 2 years now.”

Агент недвижимости Албании

— How is the Albanian real estate market remarkable in 2023? 

— The real estate market in Albania is changing at a very fast pace these last 2 years. Two years ago, the real estate market in Albania was stable, and there was no increase or decrease in prices. It has been growing continuously for about two years now. Large investments by foreign investors make this market safer and offer great potential to invest in this country.

Once upon a time, there were many requests for large apartment areas ranging from 80 to 120 m2, organized in 2+1 and 3+1. Albanians generally bought large apartments to live in. But now there is a high demand for small but well-organized apartments.

A growing trend in demand is for 1+1 apartments of around 50–60 m2 because there is a high demand for such apartments from foreign investors.

— What is the situation with property prices at the moment? How have they changed, say, in the past six months/year?

— As I mentioned above, prices are constantly rising. During the last 6 months, the prices of small apartments have increased by 15%. An apartment that a year ago cost 90,000 euros in the center of Tirana, today costs about 130,000 euros.

Now for the coastal area, where we are now selling the most apartments. On the beaches of Durrës, a 1+1 apartment of 55 m2, which a year ago cost 35,000 euros, today costs 53,000 euros. For large apartments on the coast, the price is not growing as much: for example, a 2+1 apartment of 95 m2 in the Durrës beaches area a year ago could be purchased for 57,000 euros, and today it costs 70,000 euros.

— What are the most popular areas for buying real estate in Albania? What is the reason for this? What are the peculiarities of these regions?

— The areas with the highest demand are the center of the capital and the coastal areas of Durrës. The capital is in demand because there is a larger population (almost one million people) and more developed infrastructure. And the coast of the city of Durrës is popular for several reasons: there is a lot of investment in the port of Durrës, there is a long coastline, tourism is actively developing, it is possible to rent apartments with reservations during the summer, etc.

All in one package: residence permit, work permit, and visa. Albania introduced a unique permit for foreigners

“Foreigners can buy an apartment in Albania without any problems”

— Who among the foreigners buys real estate in Albania most often, and why?

— Now, Ukrainians and Russians buy real estate most often: they leave the war, get a residence permit in Albania, and stay here to live. By the way, obtaining a residence permit in Albania is possible through the purchase of real estate. The law states that you can get a residence permit if the living area of the apartment is not less than 20 m2 per person. That is, if you are a young couple with one child, then to get a residence permit you will need an apartment area of at least 60 m2.

At the same time, residents of Poland and the Czech Republic immediately buy housing for investment reasons and rent it out on a daily or long-term lease.

— In general, what are the conditions for buying real estate in Albania for foreigners? What does this process look like?

— We cannot say that there are any special conditions for foreigners to buy property in Albania—they can buy any apartment without any problems. The only thing is that the conditions are more complicated if your goal is to buy a plot of land or a private house.

The process of buying an apartment in Albania is very simple, especially if you have a real estate agent to help you. The stages of buying are as follows: the reservation of the object, signing the contract, the transfer of money, and obtaining a certificate of ownership.

It is also a plus that foreigners can buy property remotely by power of attorney.

— What are the ways to make money from real estate in the country?

— The three most common ways to make money from real estate in Albania are: 

  • Buying a property and renting it out on a daily basis. 
  • Buying a property and renting it out on a monthly basis.
  • Buying a property, repairing and renovating it and reselling it at a higher price.

— Based on the current market situation, what do you expect to see in the future? 

— My opinion, looking at the situation, is that there will be a continuous increase in the prices of apartments and rents because foreign investments are increasing. The property investment market in Albania is like a gold mine for foreign investors now.