Foreigners have purchased 1.3 billion euros of property since 2021

2025-08-01 22:22:00, Ekonomi CNA

The latest data from the Bank of Albania revealed that in the first three months of this year, the flow of Foreign Direct Investments by real estate activity reached 104 million euros, with an increase of 24% compared to the same period previously.

Historical data shows that this is the second highest level of investments in a quarter, after October-December 2024, when the indicator reached 110 million euros.

In recent years, Albania has become an interesting market for the purchase of real estate by foreigners, especially on the coast, where prices were cheap compared to other countries in the region such as Croatia or Montenegro.

In 2024, foreigners bought properties worth around 380 million euros. Since 2021, when foreign interest began, mainly on the Albanian coast, until March 2025, foreigners have bought around 1.3 billion euros of properties in the country, according to data from the Bank of Albania, which counts these flows as foreign direct investment in the real estate sector.

The importance of real estate investments in relation to total investments in the country has increased significantly. In 2014, property purchases by foreigners accounted for only 5.7% of foreign investments, while in 2024, this share increased to 24%.

The record was set in the first quarter of this year, where home purchases by foreigners accounted for nearly 29% of the total foreign investment flow into the country.

In second place were Financial and insurance activities, with 75 million euros, almost the same as a year ago, accounting for 20.7% of the total.

These are also mainly investments in increasing bank capital due to regulatory requirements of the Bank of Albania with no direct effect on the economy.

The extractive industry attracted 51 million euros in the first quarter, almost the same as a year ago.

In the manufacturing industry, investments fell to 32 million euros, a 24% contraction on an annual basis.

Investments in wholesale and retail trade increased by 28% to 32 million euros.

Electricity, gas, and water supply, which was once the main contributor to foreign investment due to investments in energy and the TAP gas pipeline, brought in only 27 million euros of investment, or 7.5% of the total.

In total, foreign direct investments in the first quarter of the year were 362 million euros, with a slight increase of 2.3% on an annual basis./ Monitor.al