Rising rental prices in Albania: Tourism drives the housing market!

Rising rental prices in Albania: Tourism drives the housing market!

In recent years, the Albanian rental market has been characterized by significant changes. Accelerated growth in rental prices has been observed, particularly since 2023, driven by high demand in the tourism sector and rising real estate prices. According to various reports, including Gazeta Express, the rental price index in 2024 rose by over 3% in the spring and even reached 5.2% in August. This is a marked difference from the years between 2016 and the pandemic, when rent increases ranged from 0.0% to 1%.

In the current year 2025, the numbers show a similar picture: in January the rental price index was around 0.9%, while in September it rose to 6.6%. This trend indicates pressure on the housing market as high property prices slow people's purchasing plans and therefore increase demand for rental properties.

Seasonal variations and Airbnb

Another dimension of the rental market in Albania is the seasonal fluctuations. The report from International investments highlights that the highest demand is recorded in the summer months, especially in cities such as Tirana, Durrës and Vlorë. In August 2024, a record number of around 23,500 rental properties were booked on the Airbnb platform. For this purpose, owners benefit from monthly income of between 900 and 1,360 euros in the high season. In winter, however, demand drops sharply, reducing monthly income to 300 to 470 euros.

Overall, the rental market via Airbnb generated a turnover of 85 million euros in 2024, almost twice as much as in the previous year, when it was only 14 million euros. By the end of December 2024, over 21,000 properties were available on the platform. Average rental prices are around 81 euros per day in high season, while they drop to around 43 euros in winter.

Rent prices in the capital and coastal cities

The prices for rental apartments vary greatly, depending on the location and size of the property. In Tirana, one-room apartments in the city center cost on average between 40,000 ALL (403 euros) and 50,000 ALL (504 euros). Three-room apartments range from 62,300 ALL (628 euros) in the outskirts to 102,400 ALL (1,032 euros) in the center. In Durrës and Vlorë, rental prices are similar, with yields varying between 4.44% and 5.80% depending on the region.

Various experts expect the real estate market in Albania to grow by an average of 5.99% annually between 2025 and 2029. The residential sector is forecast to grow at a rate of 6.08% annually and could reach $104.4 billion by the end of the period. This growth is driven by urbanization, rising incomes and the influx of foreign buyers.

In summary, the Albanian rental market faces major challenges and opportunities. The higher rental prices and the strong dependence on seasonal fluctuations make it a dynamic but also risky area for investors.