53% of foreign investment in Albania went into real estate. What is really happening in the market and what to prepare for in 2027?
In early November, the respected The Banker (part of the Financial Times group) published a detailed review of Albania's economy: What’s Next for Albania? The main conclusion of the British analysts: real estate has become the strongest magnet for foreign capital. Together with the EstateAll team, we took this report apart piece by piece, compared the figures for 2025–2026 and prepared our own snapshot of the market, from Tirana to the Albanian Riviera.
Albania is breaking records for foreign money inflows. In the first half of 2026, more than half of all foreign direct investment went into real estate. For us at EstateAll, working with investors since 2017, this is a reason to look at the market without rose-tinted glasses. The days when foreigners simply bought up “cheap holiday homes by the sea” are over. Today our clients are pragmatic investors. They calculate returns, assess the potential of entire districts, study bank financing and exit strategies.
Let us look at the facts and figures.
- 2025€1.64 billionforeign direct investment in Albania
- of which in real estate€561 million34% of all foreign direct investment
- January–June 202653.3%real estate share of FDI: €609.6 million
- until 31 December 20265%tax on property revaluation
2025: €1.64 billion from foreigners
According to the Bank of Albania, in 2025 foreigners invested €1.64 billion in the country. Of this, €561 million went purely into real estate. That is 34% of all foreign direct investment (for comparison: 24% in 2024 and only 19% in 2021).
Capital investment in the sector grew by a remarkable 48% over the year. An important detail: the money goes not only into housing, but also into the construction of hotels and resort complexes amid the tourism boom.
What about prices?
In the first half of 2025, the national house price index soared by 41.7% year on year (in Tirana by 32.6%). In the second half of the year, growth slowed, as expected, to 28%. It is important to understand that these are averaged official figures. There are no separate indices for Vlora, Sarandë and Durrës, and cadastral prices used for tax purposes do not reflect actual transaction amounts.
The reality in Vlora
In 2024–2025, prices on the coast were completely rewritten. Lungomare, Uji i Ftohtë, Radhimë: price lists in new seafront residential complexes have risen noticeably. Buyers have become more discerning: location, concrete quality, view, beach access and surrounding infrastructure now matter. Asking prices for liquid coastal properties in the EstateAll portfolio currently range from €1,500 to €3,500 per m² (premium goes even higher). But this is the asking price. The real market value is only ever determined after a document audit, an assessment of the deal terms and negotiations.
2026: €609.6 million in six months
Fresh statistics show that the trend continues: from January to June 2026 the country attracted €1.14 billion (+51% year on year). The share of real estate exceeded half, at €609.6 million (53.3%). Other sectors (finance, manufacturing, IT) still lag far behind. The Banker rightly points to the risk of capital concentrating in a single sector. We fully agree: a healthy real estate market needs energy, logistics and technology to develop. New businesses mean jobs and solvent demand for housing and offices.
Cooling: price growth is slowing
By 2026 the market began to cool and stabilise. In the first half of the year the national index rose by only 10% (in Tirana by 9%). Time on market has increased: in the capital an apartment sells in 9.7 months on average, while on the coast the deal cycle has shortened to 8.2 months. One in five buyers is a non-resident, mostly from the EU. In Vlora we see the same picture. After the price rally, sellers face meticulous buyers who compare projects and check documents. Quality properties in top locations sell steadily. Overpriced, illiquid stock, however, can stay unsold for a long time. This is a normal sign of a maturing market.
Infrastructure as a value driver
People buy not just walls, they buy an environment. Over the 9 years of our work, Vlora has changed dramatically: promenades, new roads, modern residential complexes. We are now watching the northern corridor (Narta and Zvërnec) closely. In the south, the Llogara tunnel has become the main driver. Six kilometres through the mountains have cut the journey from Dukat to Palasë from 45 to 7–8 minutes (from Vlora to Palasë it now takes about 20 minutes).
This is a huge advantage for tourism and for property liquidity on the Albanian Riviera.
Yacht marina and airport
The Vlora Marina project is already shaping a new class of real estate. We keep a close eye on timelines and actual maintenance costs. The situation with Vlora International Airport is more complicated. In 2026 the project became mired in corporate litigation between concessionaires, and the date for the start of commercial flights is unclear. Our approach: we do not include a hypothetical airport in return calculations for clients. We rely only on infrastructure that is already operating.
Kushner's projects: Sazan and Zvërnec
Jared Kushner's initiatives have given Albania a global PR campaign. In June the government clarified matters: Sazan island remains state-owned, under a joint participation model. For Zvërnec, only a development permit (not a construction permit!) has been approved, and a lengthy environmental review lies ahead. We are following the process: legality and ecology always matter more than big names.
Property revaluation 2026: 5% tax
Until 31 December 2026, an excellent tool is available. Owners can legally update the cadastral value of their properties by paying just 5% tax on the difference between the old and new value. This is an essential step for those who bought long ago and are preparing to sell, in order to optimise taxes in the future.
What worries investors?
According to a survey by the Foreign Investors Association (FIAA), the business climate index has dipped slightly (to 45 points out of 100). The main pain points for business: land rights, bureaucracy, taxes, predictability of the courts. For EstateAll this is daily routine: we thoroughly check ownership history and developers' rights. Albania is reforming its laws to EU standards, but what matters is how they are applied in practice locally.
Smart money: banks and the EU
The European Investment Bank is putting €50 million into infrastructure in the north of the country. Such money prepares the ground for private capital. Albania itself is moving steadily towards the EU: all 33 negotiating chapters have been opened. The goal is to complete the process by the end of 2027. In addition, an EU fund of €922 million supports reforms. For the real estate market, this is a clear signal of greater transparency.
EstateAll forecast: what to expect in 2027?
The market is maturing. The frenzied price growth of 2024–2025 has given way to moderate, healthy dynamics. We will no longer see everything rising in price indiscriminately. In 2027 selectivity will rule. In Vlora the key factors will be infrastructure and the marina. In Sarandë, logistics. In Tirana, the economy and the quality of the environment. The winners will be projects with flawless documents, quality construction and a top location. The Albanian market retains excellent potential, but the time of easy money is over: analysis and precise investment calculations now matter.
EstateAll Analytics: Real estate and investment in Albania.
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