[Exclusive] Tirana Property Prices Surge by 50% in One Year: 2024 vs. 2025 Data

This article is the first in a series about Albania property prices in 2025. This week we are covering Tirana, and we’ll move to Durres next. Subscribe to our newsletter to get regular updates on this topic.

The excitement surrounding Albania’s property market is unmistakable. It’s heard everywhere: “Prices are skyrocketing!” The proof was clear when properties in the new Tirana Rock Tower were advertised for €700,000 (for a penthouse? No, for a 2-bed!). Thus, we’re updating our annual review of real estate prices in Albania to take a closer look at the property sales data for Tirana in 2025. As you already know, at Magic Towns Albania, we pride ourselves on moving beyond hearsay by bringing you insights founded on data to provide you with an accurate snapshot of the market.

This article isn’t just another discussion about rising prices. It’s an in-depth exploration of how much property prices are increasing, what types of property are experiencing the most significant changes, and exactly where these changes are most evident. Our data team, led by Eliseo Kolicaj, has painstakingly analysed thousands of property sales data points from both 2024 and 2025 to compare market trends. This comprehensive approach allows us to analyse what is happening in the Albanian property market as a whole. Over the coming weeks, we will examine the trends in various hotspots, with this week’s focus being on the capital, Tirana.

Tirana’s Centre Flat Prices Increase By Up To 56%

You read the headline. To put this into perspective, this is 13 times higher than the overall price increases in Europe, which reported an average rise of 4.2% for the same period.

As far as apartment buildings go, Tirana seems to have gone the whole way, from appealingly affordable to priced at European capital levels, in just about three years.

Here’s a closer inspection:

1-Bedroom Apartments: These highly sought-after units saw their average price per square metre skyrocket from €1,290 to a remarkable €2,125, an astonishing 49% increase.

2-Bedroom Flats: Not far behind, these units experienced a substantial 43.8% increase, with prices climbing from €1,475/m² to €2,122/m².

3-Bedroom Apartments: Leading in sheer value gain, larger central apartments soared by an average of over €850/m², marking a significant 56.67% increase, reflecting intense demand for spacious, prime locations.

Tirana Apartment Prices: Differences In and Outside City Centre

Our data confirms that Tirana’s growth isn’t limited to its core. Areas just outside the bustling centre are also experiencing price increases, albeit at a much lower rate. For instance, 1-bedroom flats in these outer areas saw prices rise from €1,336/m² in 2024 to €1,520/m² in 2025, marking a solid 13.8% increase. This trend indicates a gentle ripple effect, pushing value outward from the urban core, although the disparity in increases between city centre and non-city centre areas is evident.

The Rental Market: A Steady Rise for Tenants

In contrast to the explosive growth in sale prices, Tirana’s rental market shows a more measured and steady rise. This indicates a tightening market for renters, resulting in sustained pressure on rental costs, particularly for high-end locations.

Our analysis of average rent per square metre paints a clear picture:

• 2024: Rents typically ranged from €6.22 to €6.89/m², varying based on property size and prime location.
• 2025: This range has notably expanded to approximately €7.40 to €9.35/m².

What does this mean for your monthly budget? These figures translate to substantial percentage increases for renters:

• For properties at the lower end of the spectrum, a jump from €6.22 to €7.40 represents an 18.97% increase.
• At the higher end, rents soaring from €6.89 to €9.35 signify an impressive 35.70% increase.

The takeaway for renters is clear: Securing desirable properties in Tirana now comes with considerably higher monthly costs. While not matching the capital appreciation for sellers, these substantial increases highlight the growing demand for living space in the city, undoubtedly placing more pressure on household finances. That being said, renting remains comparatively more affordable, and the difference in

Apartment Rents: Yield Drops From 6.4% to 5.2% In One Year

The disparity between Tirana’s surging property purchase prices and the comparatively steadier, yet significant, increase in rental rates presents a crucial dynamic for prospective investors: a demonstrable decrease in rental yields.

Historically, investors refer to rental yields (the annual return on investment from rental income, relative to the property’s purchase price) to assess profitability. When property values rise at a much faster rate than rental income, the yield naturally decreases.

Let’s illustrate with a central one-bedroom flat, a prime example of the market’s intensity:

• In 2024, a 1-bedroom apartment purchased at €1,290/m² (let’s assume a 50m² apartment for €64,500) could command a top-end rental of €6.89/m² (or €344.50/month). This would imply a gross annual rental income of €4,134.
• 2024 Gross Rental Yield (approx.): (€4,134 / €64,500) * 100 = 6.4%

• Fast forward to 2025. That same 50m² apartment, now valued at a staggering €2,125/m², would cost €106,250 to purchase. While its top-end rent has risen to €9.35/m² (€467.50/month), leading to an annual income of €5,610.
• 2025 Gross Rental Yield (approx.): (€5,610 / €106,250) * 100 = 5.28%

This calculated example clearly demonstrates the trend: even with substantial rental increases, the explosive rise in purchase prices has led to a noticeable reduction in potential gross rental yields for new investors entering the Tirana city centre market.

This shift means that while capital appreciation remains a strong draw, the immediate income-generating potential from rentals for new acquisitions is becoming more modest compared to the rapid pace of property value growth. Investors must now recalibrate their expectations, recognising that a significant portion of their returns will likely come from long-term capital gains rather than high immediate rental income.

Houses in Tirana: 3-Beds In Centre Double In Price In 2025, Outskirts Get Cheaper

Houses in Tirana, particularly larger ones or those near the city centre, have also experienced a lot of volatility in just one year.

Here’s what the data indicates:

• The biggest price increases were seen in 1- and 3-bedroom houses, especially in or near the centre.
• 3-bedroom houses in the city centre more than doubled in price.
• Interestingly, 2-bedroom houses outside the centre actually got cheaper per square meter, dropping by about €150/m².

So while some types of houses are becoming less affordable, there are still pockets of opportunity, such as 2-bedroom houses located outside the centre,

House Lettings In Tirana: Rents Are Up, Yields Still Attractive

Rental data for houses is more limited compared to flats, but here’s what we can observe:

• A 3-bedroom house in the city centre rents for about €7/m², which is a solid yield (4.98% in 2025).
• Some older listings for 1-bed houses outside the centre had very low rents before, but there’s not enough updated data to give a statistically reliable average.
• Outside the city centre, both 2- and 3-bedroom houses offer yields around 4.5–4.65%, which is competitive.

What Can We Expect For Tirana Property Prices In 2026?

With both rents and purchase prices skyrocketing, while wages see only modest growth by comparison, one has to ask: who will be able to afford these properties in the long term if they’re becoming increasingly out of reach for most residents?

Take, for instance, the frequently referenced two-bedroom flat in Tirana Rock, listed at €700,000. With the reported average monthly salary of €830, and assuming an optimistic scenario where half is saved each month, it would take over 21 years just to accumulate the 15% deposit required for an 85% mortgage. This doesn’t even account for inflation, living expenses, or rising property prices.

Yes, salaries increased by 11.2% from 2023 to 2024, but this growth pales in comparison to the rate at which property prices are soaring. Rents tell a similar story—particularly in the city centre, where they have significantly outpaced wage growth.

This trajectory can’t continue indefinitely. When prices separate too far from local incomes, the question must be asked: is Tirana’s property market overheating?

Our advice: if you’re considering investing, do your research thoroughly. When expectations are sky-high and fundamentals shaky, the likes of Tirana Rock might end up being a millstone around your neck.

“A Bubble”. “I Don’t Regret Investing”. Comments From Locals and Foreigners

Here is a handful of recent testimonies we have collected about buying property in Tirana, mainly from international expats.

“We bought a flat in Komuna e Parisit – the process was quick and straightforward, just make sure the paperwork is clean.” – Anonymous British expat

“I regret not buying 3 years ago. Prices were half what they are now. It feels like a bubble, but who knows.” – Local resident

“Prices have gone mad. £250K for a flat in Tirana is simply not worth it. That’s New York pricing for Albania.” – Albanian-American resident

“Tirana is still a bargain compared to Italy. We rent it out on Airbnb when we’re not there – great ROI so far.” – Italian couple

“I work in construction here – many of the new buildings are cutting corners. Be cautious. Not every luxury tower is truly luxurious.” – Anonymous Albanian builder

“We’re Albanians living in Germany and wanted a place in Tirana. But £200K for a 1-bedroom is insane. We’re looking in Durrës instead.” – Diaspora couple, Facebook group

“The apartment prices make no sense with Albanian salaries. No one I know can afford to buy here anymore.” – Local young Albanian professional

“Bought a villa outside Tirana – amazing space but had to fix a lot of post-construction issues. Still worth it for the price.” – French expat

Fonti

• Eurostat

• Instat

Ulteriori letture

• 7 insidie nell'acquisto di un immobile in Albania

• Renting in Tirana versus Durrës?

• Guida per gli espatri: Trasferirsi a Tirana