Albanian coastal property: prices up around 25% as foreign buyers account for 40% of demand

According to Tirana Times, in a report dated May 29, 2024, demand for coastal property in Albania had risen by 20-30 percent compared with the previous year, citing the Albanian Builders Association. Vlora, Palasa and Saranda are named as particularly popular areas, and about 40 percent of buyers are foreigners drawn by lower prices than in neighboring countries. Coastal real estate prices rose by an average of 25 percent. The article gives a range of per-square-meter figures. In resort areas such as Palasa, Orikum and Saranda, apartment prices reached up to €4,000 per sq m at the top end. In Vlora's Lungomare area prices were up to €3,500 per sq m, a 25 percent rise on the year. Orikum and Radhimë saw the steepest growth, 67-88 percent, according to data from Monitor. Golem reached €1,500 per sq m, Lalëz Bay ranged from €2,400 to €3,300, and the Shkëmbi i Kavajës area rose 20 percent to €1,800. In Saranda, older apartments sold for about €1,500 per sq m, new builds for €2,200-2,500, and beachfront apartments started above €3,000. Tirana's market looked different: demand was described as steady versus the previous year. Rising prices in the center were pushing young families to the suburbs, where prices now exceed €1,000 per sq m. Paskuqan is a high-demand area with prices from €900 per sq m, while central Tirana ranged from €2,000 to €5,000. Tirana Times also notes that, after the sharp post-pandemic price rise and higher loan rates, few Albanians can afford to buy, leaving economists asking where the money for the construction boom comes from. Foreign buyers and Albanians abroad purchasing second homes or tourist rentals are one explanation, but experts, including organized crime prosecutors, say part of the inflow driving prices up is the laundering of illicit funds. These figures date from 2024 and current prices may differ.