Tirana ranks 5th in Europe with the highest increase in apartment prices for 2021-2023

2025-02-10 07:46:00, Ekonomi CNA

Tirana ranks 5th in Europe with the highest increase in apartment prices for

For the period 2021-2023, Tirana is positioned among the countries with the highest increase in average apartment sales prices in Europe.

In Europe, apartment sales prices for the period 2021 to 2023 have increased by 10.3% according to data made public in the European Parliament's report "Rising housing costs in the EU".

Based on the data from the "KeyData Albania" index, in Tirana from 2021 to 2023, average apartment sales prices increased by 41%.

The average selling price of apartments per square meter by the end of December 2023 reached 1,548 euros from 1,095 euros in the first quarter of 2021.

From the comparison of the data published by the report and the index in Albania, it results that Tirana ranks among the 5 countries with the highest price growth in the period 2021-2023.

For the same period in Europe, the largest price increase was led by Hungary with about 65%. Followed by Iceland with 54%, Lithuania with 50%, Estonia with 45%, Croatia with 40%, Bulgaria with 37%, etc.

While the lowest price increases were recorded in Germany with 1%, Cyprus with 5% and Italy with 6%. In several other European countries such as Finland, Sweden and Luxembourg, prices decreased by 1 to 6%.

The report analyzes the growth of apartment prices for almost a decade. From 2015 to 2023, the increase in average apartment sales prices in Europe is 48%.

The report highlights that the main reasons that contributed to the price increase are higher construction costs and interest rates, as well as the decline in construction that limited supply and the increase in the purchase of properties as an investment to generate additional income.

In Tirana, the increase in apartment prices continues.

The price hike has not stopped during 2024. Among the reasons for the price increase, according to builders, was the increase in the obligation for the infrastructure impact tax, following the increase in reference prices from July 2023. Although during 2024, the demand for purchases was lower than the previous year.

In July 2024, compared to the same period in 2023, according to agency data, the increase in prices in central areas ranged from 10 to 16%.

Specifically, in some areas, such as the one near Dinamo Stadium, the maximum price reached 2,900 euros per square meter from 2,600 euros per square meter in 2023. The increase was 16%.

Near the Olympic Park in Tirana, in one of the new complexes being built, in July 2024 sales prices reached from 2,200 euros minimum value to 2,900 euros per square meter maximum value.

In this area, sales prices in 2023 ranged from 2,300 to 2,600 euros per square meter. There have also been price increases in suburban areas.

Even at the beginning of 2025, price increases are observed.

In the Municipality of Paris, prices for new construction in the first phase range from 2,400-2,700 to 3,000 euros per square meter. In suburban areas such as Fresku, Shkoza and Astir, prices start at 1,400 euros per square meter.

Builders claim that the reason for the price increase is the growing demand from foreign buyers and purchases for investment purposes with long-term and short-term rentals./ Monitor Magazine