The Experts Club Information and Analysis Center has presented a study of the housing and construction market in Albania, the main points of which are presented here.

In just a few years, Albania has transformed from a “hidden beach destination” into one of the most dynamic real estate markets in the Mediterranean. According to the Central Bank of Albania, in 2024, foreigners invested around €380 million in Albanian real estate, 17% more than the previous year. This is the third consecutive year that real estate has ranked first in attracting FDI, accounting for approximately a quarter of all investment inflows.

According to estimates by industry analysts, in recent years, foreigners have accounted for about a quarter of all sales transactions in the country, with interest concentrated on the coast – Saranda, Ksamil, Vlora, Durres, and the surroundings of Tirana.

Below is an informal top 10 list of citizens of countries that are currently most actively investing in housing in Albania. The state statistics agency does not publish an official “table” by nationality, so the ranking is based on data from the Central Bank, market reviews, and assessments by the largest agencies on the coast.

1. Italians – their “own” Riviera at half price

Italians were among the first foreigners to discover Saranda, Xamili, and Vlora. Local agencies note that demand from Italian citizens has doubled over the past couple of years: they mainly buy apartments by the sea and ready-made apartments “to European standards.”

The reasons are simple: similar climate and culture, but housing prices and daily expenses are significantly lower than in Italy or Croatia.

2–3. Poland, Czech Republic, Slovakia – investors who consider ROI

Poles, Czechs, and Slovaks are one of the fastest-growing segments. Agencies on the coast note that up to 90% of demand in some resort areas (Saranda, Ksamil) in certain seasons came from buyers from these countries. Central European investors carefully calculate profitability: they are interested in small apartments for daily rent with an expected annual ROI of 10–16% in high-season locations.

4–5. Germans and Swiss – stability and quality

Citizens of Germany and Switzerland are focused on a more “quiet” segment – modern homes with parking, good infrastructure, quiet neighborhoods, and stable rental rates year-round. Their share is noticeable both in Tirana and on the coast.

6. Scandinavians – Norway, Sweden, Finland

Scandinavians appreciate Albania for its climate, nature, and the opportunity to spend part of the year by the sea while maintaining a high standard of living. In agency reviews, they consistently appear among the key European buyers, along with Germans and Italians.

7. French and British – “latecomers” but active

France and the UK joined later, but demand from citizens of these countries is growing: they are attracted by relatively low prices compared to southern France, Spain, and Greece, as well as the ease of purchasing real estate by foreigners.

8. Americans – betting on “early entry”

For US citizens, Albania remains a “new” destination. Agencies on the coast note a growing influx of buyers from the US, focusing either on villas and large apartments for family vacations or on properties for short-term rentals.

9. Ukrainians – a growing but still niche segment

According to agencies, interest in Albania among Ukrainian citizens has grown significantly since 2022. One of the largest players in the market notes that demand from the former Soviet republics — Belarus, Russia, Kazakhstan, and Ukraine — has increased by about 60% compared to the pre-pandemic period.

Ukrainians more often choose the coast (Vlora, Durres, Saranda) and Tirana for relocation, obtaining a residence permit based on the purchase of real estate, and asset diversification. Formally, their share is lower than that of Italians or Poles, but Ukrainian buyers are already very noticeable in a number of seaside complexes.

10. Russians and other post-Soviet investors

The share of Russian buyers after 2022 has declined due to sanctions pressure and restrictions on financial transactions, but has not completely disappeared. A number of local reviews note an influx of Russian and Belarusian citizens who are re-registering assets through companies or relatives, as well as jointly with EU citizens.

In certain locations (for example, part of the Durres coast), it was precisely the sharp increase in activity by Russians and Ukrainians in 2022–2023 that led to price spikes and a shortage of “view” apartments, although in 2025, the structure of demand is once again dominated by EU citizens.

Why Albania is so attractive to foreigners

1. Free access to housing
2. Foreigners can freely buy apartments, houses, and commercial real estate—the restriction mainly applies to the direct purchase of agricultural land (usually purchased through a local company).
3. High returns and price growth
4. On the coast, annual rental yields can reach 7% and above, and in peak tourist locations, they can reach double digits, according to market players’ estimates. Prices in coastal cities have grown by 15-25% per year in recent years amid rapid development of tourism and infrastructure.
5. Strong investment flow
6. According to the Bank of Albania, foreign investment in real estate amounted to around €380 million in 2024, which is about 24% of the total FDI. In the first half of 2025, the trend intensified: in the second quarter, foreign investment reached a record €149 million.
7. Residence permits and “life packages”
8. Foreigners’ laws allow residence permits to be obtained on the basis of investment in housing, as well as through business registration and other grounds, which are actively used by European investors, including Ukrainian and Russian ones.

Risks and prospects

The sharp influx of foreign capital is already leading to higher housing prices for the local population and the risk of overheating in certain resort areas. At the same time, Albania remains an EU candidate country with large-scale infrastructure projects (a new airport near Vlora, reconstruction of the port of Durres, development of resorts on the south coast), which supports long-term demand for housing.

For foreign buyers – whether Italian, Polish, Ukrainian or Russian – the key conclusion is the same: Albania is no longer a “secret”, and the market is becoming more mature and competitive. This means that without professional legal due diligence, an understanding of the location, and realistic expectations of returns, it is becoming more difficult to enter the market, but the country’s potential as “Europe’s last affordable Riviera” remains intact.

Albania Албанія житло

Last modified: December 2, 2025