Over the last 10, even 15 years, a Balkan capital has been attracting more and more investments, which is causing property prices to grow rapidly. Tirana is developing very well. New construction is developing rapidly. The reason is not so much that the city is the capital of Albania, but that over the last decade we have observed an increase in investments in infrastructure and real estate. The goal of the Balkan country is to become the Riviera of the Balkans. To a large extent, it is succeeding. A number of seaside complexes with luxurious 5-star hotels, restaurants with excellent cuisine and Michelin stars have been built.
„We cannot develop the coast while our capital, which is the calling card of Albania, remains with old construction and old buildings in a deplorable condition“, local brokers comment. However, they also share the main problem – the increasing rate of inaccessibility to housing by the average Albanian. Data show that over the past year, the rate of housing price increase has been higher than that at which incomes are rising.
Housing prices in Albania increased by 40% in the first half of 2025 compared to the same period in 2024, according to data from the Fisher Index of the National Bank of Albania. The average asking price per square meter of residential space in Tirana in June last year was 1,830 EUR in an existing building.
The segmentation of the housing market in the Albanian capital is very strong. For example, homes in new projects on the outskirts of the city are traded in the wide range between 1,400 and 2,000 EUR/sq m. In the central Bloku district, the value reaches 5,500 EUR/sq m. Prices are almost identical to the Sofia market.
Against these prices, the average Albanian must buy a home with an average salary of around 770 EUR. This is nearly 30% less than in other Balkan countries. The figures show that incomes are failing to keep up with the growth in property prices.
A 70 sq m apartment in Tirana can be acquired with 19 annual gross salaries. Thus, the city is among the most inaccessible European capitals in terms of acquiring a home. It ranks next to Athens and Amsterdam. For comparison, the average standard in EU countries is between 10 and 12 years.
The fastest growing housing prices are in the Porcelan area, the Olympic Park and the Artificial Lake. There, within just a few months, the price increase is in double-digit percentages.
There is interest in buying, but in order to increase it on the part of the local population, two very important things are needed. The first is to increase the income of the population. The second is the creation and implementation of a targeted housing policy for relief for the local population.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg