Albanians and foreigners are buying houses to rent out, but the business is changing

The real estate market in Albania continues to demonstrate growth, although the pace has moderated when assessed against previous periods. Data from the Bank of Albania’s Fischer index indicates that the average housing price in the second half of 2025 rose by 11.7% when compared to the preceding half. Furthermore, this represented a significant increase of 28% when benchmarked against the same period one year prior, marking a noticeable deceleration from the 41.7% year-on-year growth recorded in the first half.

This deceleration is particularly evident within the capital, Tirana. In Tirana, price increases were minimal from the previous half, showing only a 4.4% annual growth, which contrasts sharply with the 32.6% growth observed at the beginning of the year. According to the Bank of Albania, the primary driver for the overall index growth originated from the coastal regions.

In terms of transaction speed, the average time required to sell housing has decreased to 9.1 months, down from 11.6 months previously. This reduction was more pronounced in Tirana, where the average time fell to 8.1 months, while other areas saw minor fluctuations. Overall, while growth remains positive, the comparison between the current rate of appreciation and the peak growth seen in earlier periods suggests a period of stabilization within the Albanian property sector.

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