Albania, with the most expensive apartment prices in Europe, according to purchasing power

It takes an average Albanian family 16.3 years of work to buy an apartment.

This time is the longest in all of Europe, according to the Numbeo indicator, which calculates the price-to-income index, which measures the affordability of buying an apartment, for mid-2025.

This is the first time that Albania has been ranked at the bottom of the list for the ratio of apartment prices to income in 36 countries measured.

In the ranking at the beginning of 2024, the earliest year when Albania was included in this indicator, the country ranked 32nd, with 13.8 years, leaving behind, among others, North Macedonia (14.8) and Serbia (16.8), which was last on the list.

The deterioration in the latest ranking indicates a faster increase in apartment prices in relation to income. In Albania, the average gross monthly salary for 2024, according to INSTAT, reached 77.5 thousand lekë/month, or about 770 euros. However, salaries in Albania remain about 30% lower than in other countries in the region.

The highest average gross monthly salary is in Serbia, at 1,150 euros per month (135,403 Serbian dinars). In Bosnia and Herzegovina, the salary is almost 1,100 euros (2,140 BAM). In Montenegro, the salary is 1,083 euros. North Macedonia also pays its employees more than a thousand euros per month on average, specifically 62,000 Macedonian dinars, or 1,020 euros per month.

The increase in apartment prices has been much faster, making it increasingly difficult for a family to buy a home. The Bank of Albania has estimated that housing prices returned to rapid growth in the second half of last year.

The Fischer index calculated by the Bank of Albania showed that the average price of apartments sold during the period increased by 23.6% compared to the previous six months, and by 44.5% compared to a year earlier.

According to real estate agencies, in the capital, sales prices in some of the suburban areas from Paskuqan to Shkozë range from 900 to 1,400 euros per square meter. Apartments within the yellow construction zone are offered at sales prices above 1,500 euros per square meter.

While in the downtown areas and within the Small Ring Road, you will no longer find apartments with prices below 2,000 euros per square meter, and the closer you get to the center, the prices reach 3-4 thousand euros/square meter. In the area near the lake and in the towers in the center of Tirana, prices start at 5 thousand euros per square meter.

In Durrës, apartments start at 1,200-1,700 euros per square meter, according to current agency offers. The highest prices are in areas with sea views and complexes for high-end residents, up to 2,000 euros/m².

In the Lungomare area, agencies such as Smart Capital and Vlora Estate offer 2+1 apartments with an area of ​​around 110 m² for 215,000–285,000 euros, which translates to 1,950–2,600 euros/m².

Slightly deeper areas (Rradhimë, Kalaja, Uji i Ftohtë) have prices of 130,000–160,000 euros for 60–80 m², corresponding to 1,700–2,200 euros/m².

In Saranda, for an average apartment, according to agencies, the price fluctuates around 1,800–2,200 euros/m², while investments in luxury areas go up to 2,500–2,800 euros/m².

After Albania, the most expensive apartments by purchasing power are in Serbia, Numbeo estimates, at 15.8 years.

Next in line are Russia (15.5), Portugal (14.6). In the region, the cheapest apartments are in North Macedonia, where a family would have to work 12.5 years (data are missing for the Price-to-Income Index, which measures the affordability of buying an apartment. It shows how many years of net family income it takes to buy an average apartment, with a lower value indicating better affordability.

The calculation is based on:
- net household income equivalent to 1.5 times the average net wage (assuming that 50% of women are active in the labor market),
- the price of an average apartment of 90 m²,
- and the average price per m² calculated as the average between the central and peripheral areas of the city.

This indicator is widely used to compare how affordable the housing market is in a city or country. The indicator is part of the Quality of Living Index, where Albania ranked last in Europe, one of the factors that influenced this result is related to the high prices of apartments in relation to income, along with low purchasing power and healthcare./ Monitor