Albania among the countries with the highest increase in apartment prices in 2024

Albania is ranked one of the countries that saw the highest price increases in 2024, according to the "Deloitte Property Index 2025" report, where our country is included for the first time.

The average price of apartments in Albania has reached 1620 euros per square meter, an increase of 16.6% compared to the previous year, ranking second with the highest price increase after Poland (19.3%), with the latter being influenced by the government's housing subsidy policies.

In total, nine countries recorded increases of over 10%, underlining the ongoing demand pressures and decreasing housing affordability in many parts of the continent. (Bosnia and Herzegovina and Israel (both +12.7%); Hungary (+11.9%); Croatia and Romania (both +11.5%); Italy (+11.2%); Greece (+10.2%). In contrast, the only country to record a significant annual decline in offer prices was Turkey, where prices fell by -12.0%, marking the largest decline in this year’s comparison.

Tirana and Vlora also rank among the cities with the highest price increases in the countries included in the Deloitte report. “Looking at the annual changes in average asking prices, several cities experienced strong increases. Krakow topped the ranking with an increase of 28.1%, closely followed by Jerusalem (+25.2%) and the Albanian cities of Tirana and Vlora (both +25.0%)”. In Belgrade, for the same period, prices have fallen by 0.9%.

In Tirana, the average price has reached 2 thousand euros per square meter and in Vlora 2400 euros per square meter, while in Durrës it is 1350 euros per square meter.

Both Albanian cities have seen increased interest from both domestic and international buyers. Vlora in particular has benefited from the rapid expansion of the tourism sector and major infrastructure developments – including Vlora Airport (expected to be completed by the end of 2025 or early 2026), as well as ongoing strategic investments such as the Vlora Bypass and the Llogara Tunnel, the report says.

Rental prices have also increased, especially in Vlora (+25%) and Durrës (22.5%).

"In the case of Albanian cities such as Vlora and Durres, the relatively large increase in rental prices was mainly driven by increased seasonal demand for short-term rentals. Particularly in these coastal areas, increased activity from the tourism sector has exerted upward pressure on rents, reflecting a change in the dynamics of the local housing market during peak seasons."

In Tirana, rents for 1+1 apartments have increased by about 20%, reaching 500–800 euros per month, driven mainly by high demand for short-term rentals from tourists. In coastal cities, such as Vlora and Durres, the tourist season has put significant pressure on the rental market, making it increasingly difficult for locals to afford the cost of housing.

The summary for Albania states that agents report price increases in almost all areas, with particularly strong increases in Tirana and the coastal area. The sales price index in Tirana increased by 26.2% in the second half of 2024 compared to the previous period and by 56% compared to the level of the previous year.

Prices asked by sellers increased significantly during 2024. For example, the average price per square meter (m²) in Tirana increased to 2,000 euros/m² (from 1,600 euros/m² a year earlier) by the end of 2024, driven by urban development and high demand. The most sought-after locations in the city center (areas such as Blloku and around Skanderbeg Square) now reach 3,000–3,500 euros/m² or more, while even suburban neighborhoods exceed the 1,000 euro/m² mark.

Coastal cities also saw growth: current apartment prices in Vlora range on average around 1,500–1,800 euros/m² (highest for sea views) and rental rates reach around 5%. Also, luxury residential projects by the sea (e.g. Dhërmi, Saranda) reached 1,500–2,500 euros/m², while premium units on the first line of the beach can reach up to 3,500 euros/m².

The residential rental segment expanded in 2024. Official statistics show total rental income of around 350 million euros in 2024 (with an increase of around 10% on an annual basis).

Strong demand from short-term tourism increased rents by 20% by the end of 2024, with one-bedroom (1+1) apartments in Tirana reaching around 500–800 euros per month (around 8–12 euros/m²).

In summary, the Deloitte report highlights that the real estate market in Europe is facing major challenges in housing affordability, as the continuous increase in prices is making access to housing increasingly difficult for broad segments of the population. Albania, being included in this index for the first time and being ranked among the countries with the highest price increases, is entering the attention of the European market as a country with a dynamic market and strong potential for investment, but also with obvious challenges for the affordability of local citizens./ Monitor