Property prices on Albanian coast soar, partially driven by foreign buyers
Story Highlights
- With the massive increase in property prices post pandemic and the increase in loan rates, few Albanians can afford to buy in the country’s booming market.
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TIRANA, May 29, 2024 - Demand for coastal properties in Albania has surged by 20-30 percent compared to last year, according to the Albanian Builders Association.
Key areas like Vlora, Palasa and Saranda are particularly popular, with 40 percent of buyers being foreigners attracted by lower prices compared to neighboring countries.
Real estate prices in coastal regions have increased by an average of 25 percent. In resort areas such as Palasa, Orikum and Saranda, apartment prices have reached €4,000 per square meter at the highest level.
Vlora's Lungomare area sees prices up to €3,500 per square meter, a 25 percent rise from last year. Orikum and Radhimë have seen the steepest increases, with prices soaring by 67-88 percent, according to the latest data published by Monitor.
In Golem, prices hit €1,500 per square meter, while the Lalëz Bay ranges from €2,400 to €3,300 per square meter. Shkembi Kavajes area prices have increased by 20 percent, reaching €1,800 per square meter.
In Saranda, older apartments sell for €1,500 per square meter, with new constructions at €2,200-€2,500 per square meter. Beachfront apartments start at over €3,000 per square meter.
In contrast, demand for apartments in Tirana remains steady compared to last year. Rising prices in the city center are pushing young families to the suburbs, where prices now exceed €1,000 per square meter. Paskuqan is a notable area of high demand, with prices starting at €900 per square meter, while central Tirana prices range from €2,000 to €5,000 per square meter.
With the massive increase in property prices post pandemic and the increase in loan rates, few Albanians can afford to buy in the country’s booming market, leaving economists pondering where the money for a massive construction boom is coming from.
Foreign buyers and Albanians abroad investing in second homes for themselves or as properties to rent to tourists is one explanation, but experts, including organized crime prosecutors, say part of the influx that is increasing prices is the laundering of ill-gained funds abroad by organized crime groups.
