Capital Growth in Albania: How Real Estate Prices Are Rising Every Year

I’ve been living and working in the south of Albania long enough to remember when apartments in Saranda were sold for €800 per square meter — and people thought that was expensive. Back then, the promenade was smaller, most buildings didn’t have pools, and the idea of a foreigner buying a flat here seemed almost exotic. Fast-forward a decade and it’s a completely different world.

Today, Saranda, Ksamil, and Vlora are not just travel destinations — they’re investment stories. The real estate market in Albania has quietly become one of the fastest-growing in the Mediterranean, with prices climbing year after year. It’s not hype or speculation; it’s the result of steady demand, limited coastal land, and a tourism wave that shows no sign of slowing down.

From Underrated to Unmissable: Albania’s Real Estate Momentum

There was a time when Albania didn’t even appear on investors’ maps. Most people looking for a Mediterranean property turned to Greece, Croatia, or Italy. Now, the same buyers who once dismissed Albania are calling me to ask if there are still Saranda apartments for sale with full sea views.

Why? Because prices here are still affordable compared to neighboring countries, yet the lifestyle, nature, and return on investment feel like something out of the early days of the Croatian coast. It’s that mix of discovery and opportunity that makes this place special.

Historical Growth: A Decade of Real Change

Over the last 10 years, property prices in Albania have consistently increased. In Saranda, for example, what used to cost €900/m² now ranges from €1,800 to €2,200/m² depending on the view and building quality. In Tirana, apartments that once sold for €700 now exceed €1,400/m² — in some areas even higher.

This isn’t a “bubble.” It’s sustained growth built on demand, not debt. Unlike many European markets that rely heavily on mortgages, Albanian buyers (local and foreign) often purchase with cash. That means the market moves steadily, not artificially.

I still remember a couple from the Netherlands who came to see a small one-bedroom near Saranda’s port about six years ago. They hesitated because “it felt too early.” Last summer, when they visited again, that same building had nearly doubled in value — and it was fully booked for the season.

What’s Driving Capital Growth in Albania

There’s no single reason for the rise — it’s a mix of strong fundamentals and perfect timing.

1. Tourism Boom

Last year, Albania welcomed over 10 million visitors, a record number. Most of them headed south — to Saranda, Ksamil, Borsh, and the Riviera. With this influx came an explosion in short-term rentals. Platforms like Airbnb and Booking.com transformed vacation apartments into businesses, with summer occupancy rates of 80–90%.

2. Infrastructure Upgrades

The new Vlora Airport is nearly ready to open, connecting the south directly to Europe. Road improvements — like the expanded Riviera Highway and port upgrades in Saranda — make access easier and safer than ever before.

3. Foreign Investment

There’s been a steady flow of buyers from Italy, Germany, Poland, and the Netherlands, many of whom first visited as tourists and returned as property owners. They see what locals have known for years: the coast here is still undervalued.

4. Economic Stability

Albania’s economy has matured. Inflation remains relatively low, the Lek has been stable, and the government’s EU candidate status has boosted investor confidence.

5. Limited Land Supply

In areas like Ksamil and Borsh, there’s simply no more space to build near the sea. That scarcity naturally drives values upward. You can feel it — plots that once sat empty for years are now construction sites.

Regional Differences: Where the Growth Happens Fastest

Growth isn’t equal everywhere, and that’s part of the beauty of the Albanian market.

South Albania — Saranda, Ksamil, Borsh, and Vlora — remains the leader. Prices here have risen the fastest, pushed by tourism and demand for beachfront and seaview properties. In Saranda, every year I see fewer listings with unobstructed views, which is why well-positioned buildings sell quickly.

If you’ve ever driven down to Borsh, you’ll notice something special. The long olive-tree road leading to the beach still feels untouched, yet just a few minutes inland, developments like White Residence Villas are redefining what quiet luxury means. Four villas, each with its own private pool, sea view, and private parking, built by our own construction team — 15+ years of experience and over 150 skilled workers. It’s a small residential paradise, seven minutes from the beach, surrounded by nothing but nature.

Meanwhile, Tirana has its own story — business, education, and tech sectors have made it the country’s long-term appreciation hub. Up north, growth is slower but steady, mostly driven by locals seeking affordable housing.

Rental Yields & ROI: The Double Reward

Capital growth is only half the story. The other half is rental income — and it’s just as impressive.

In coastal areas, rental yields can reach 6–12% per year. During July and August, apartments rent for €350–€550 per night, especially those with sea views or pools. It’s common for owners to recover a large part of their annual investment in just a few summer months.

Take, for example, this modern 1-bedroom apartment in Ksamil: a brand-new 2025 residence with a private pool for residents, just seven minutes’ walk from the beach. In high season, a place like this easily achieves top occupancy because travelers are now looking for comfort and style — not just proximity to the sea.

And in Saranda, I recently visited a client’s home near Skënderbeu Street — a fully furnished seaview apartment in a quiet, high-end neighborhood. Every room opens to the sea. You wake up, make coffee, and the horizon is right there. That’s what people pay for — not just walls, but the experience. Apartments like this rent instantly on Airbnb and hold value incredibly well.

Even the new duplexes in Ksamil are changing expectations. The 139m² luxury units offer two pools (one private, one shared), underground parking, and full privacy. Located 300 meters from the beach, they deliver up to 16% ROI annually — numbers that would turn heads even in Spain or Italy.

Looking Ahead: 2025–2030

So where is this all heading? In my opinion, Albania’s property market is entering its mature growth phase — steady, not speculative. Over the next five years, I expect 5–10% yearly appreciation, depending on the region and project quality.

The Vlora Airport opening, new coastal marinas, and increased air routes from Northern Europe will keep the southern Riviera busy year-round, not just in summer. Investors are already asking about off-season rental demand, something that was unthinkable five years ago.

And yet, even with rising prices, Albania is still far more affordable than Croatia or Greece. That means there’s room to grow — sustainably.

Why It’s Still a Good Time to Invest

Yes, prices have climbed. But we’re still early in the story. The average cost per square meter in Albania is a fraction of what you’d pay across the Adriatic. And unlike markets inflated by bank loans, ours is built on real cash buyers and real demand.

For investors, that means stability. For lifestyle buyers, it means the comfort of owning something tangible in a country that’s growing fast but still feels authentic.

When I take clients around Saranda or Ksamil, I often stop at a small seaside café just above Pasqyra Beach. The owner brings out homemade olive oil and insists you try it with bread before you leave. It’s those moments — simple, human, real — that remind me why people fall in love with this place, and why they decide to stay.

Final Thoughts

The capital growth in Albania isn’t a trend; it’s a transformation. From Saranda’s rising skyline to Borsh’s tranquil villas, this country’s real estate is moving in one direction — upward — but in a healthy, sustainable way.

I’ve seen it firsthand: owners who bought five years ago have doubled their equity; investors renting through the summer now enjoy returns that rival Europe’s best. The opportunity is still here, just more refined than before.

At VivaView Real Estate, we focus on developments with proven growth potential — from Ksamil’s luxury duplexes to Saranda’s seaview residences and the White Villas of Borsh. Whether you’re looking for a long-term home or an investment that actually works, the Albanian Riviera is still one of the Mediterranean’s best-kept secrets.

And honestly? I wouldn’t trade it for anywhere else.