Tirana Property Prices Soar Amid Affordability Crisis
The high prices of apartments and Albanians’ low incomes continue to rank Tirana among Europe’s five most expensive cities for property affordability. According to Numbeo data for 2024, it takes 15.3 years to buy an apartment in Tirana, while in the most expensive city in Europe, Lisbon, a family needs 19.5 years to become the owner of a property.
In Numbeo’s index of 293 cities worldwide for the affordability of buying an apartment until mid-2024 (calculated as the ratio of average apartment prices to average disposable family income, expressed as years of income), Tirana ranks among the European countries with the most expensive apartments.
Tirana Property Prices. Rising Cost of Tirana’s Property Market
The property affordability index for Tirana was higher, at 17.5 years, compared to a year ago. In 2022, it was 15.7 years; in the 2021 index, it was 16.2 years. In 2024, the most expensive city in Europe was Lisbon, which was 19.5 years old. Paris and Split were next, at 17.8 years old. Next in line was Milan, which was 16.3 years old. After Milan, Tirana continued to remain the most expensive apartment in Europe.
Real estate market agents predict that the market will reflect the increase in builders’ tax obligations regarding property sales pricing. “From August 2023, with the entry into force of the new reference prices for Tirana, the obligation of builders for the infrastructure impact tax was automatically increased. Ylli Sula, head of the “Key Data” index, says that property sales prices are “Expectations They set..” to reflect the cost increase.
A Shifting Demand Landscape in Tirana
After falling in the summer months, demand for property purchases increased in autumn. However, the market for real estate agents is decreasing compared to previous years. Stela Dhami claims that the demand for buying apartments in Tirana is led by diaspora Albanians and those from the districts.
“Many Albanian citizens in the diaspora and beyond remain interested in having an apartment in Tirana as a bridge between them and their hometown. Also, in projects near universities, many parents from the districts consider buying an apartment as an investment for their children looking to build a future in the metropolis.
In coastal areas, the increase in demand was influenced by foreigners and Albanian citizens of the diaspora, as Tirana property prices continue to be cheaper than those in Montenegro and Croatia.
