Rents of apartments in Tirana are increasing by 20%

2024-11-10 08:43:00, Sociale CNA

The high demand and the decrease in supply from the occupation of properties for daily rental has led to the increase in the prices of long-term rentals on average from 10 to 20% for a year, according to Stela Dhami, the manager of the international property agency Colliers International Albania.

Currently, according to Mrs. Dhami, prices in the main areas of Tirana range from 500 to 800 euros for 1+1 apartments. For 2+1 apartments, prices range from 800 to 2,500 euros. As for apartments with a larger area, the rent is over 2,500 euros per month.

Ms. Dhami says that in the peripheral areas of the capital, which are known for quality stock, these prices can range from 4,000 to 10,000 euros per month for quality residential units, such as villas with large spaces for recreation and green spaces around the environment.

"Rental prices are increasing, a trend that continues over the years in Tirana. The increase from 10 to 20% is significant for the income level of the Albanian consumer. The level of growth is considerable, considering the income of Albanian families.

The representative of the agency "Colliers International Albania" predicts that the rental prices for housing in the center of Tirana will remain high for years, if the trend of the influx of foreigners continues.

How rent prices have changed in some areas of Tirana

Apartment rents in Tirana this year have increased on average up to 50 euros per unit, compared to years, according to real estate agents. According to them, within the Small Ring Road in Tirana you cannot find 1+1 residential apartments, with a price below 500 euros per month.

According to data obtained from real estate agencies, in Tirana, the most expensive area for renting 1+1 apartments continues to remain near the "Air Albania" stadium.

The monthly rent for these apartments is 800 euros, from 650 euros that was years ago. The increase is 23%. While the maximum price for 2+1 apartments has reached 1,300 euros, from 1,200 euros per month last year.

In the area of ??the former Block, the rent price for 1+1 apartments in September of this year reached up to 800 euros per month from 750 euros, which was the maximum rent level last year.

The increase is about 7%. While for 2+1 properties, rents range from 1,000 to 1,300 euros, from 950 to 1,000 euros per month in September 2023.

Within the Small Ring, rental prices for 1+1 properties are 500 euros per month, while for 2+1 units, the maximum prices reach up to 1,000 euros per month.

For apartments near the Commune of Paris, with a surface of 1+1, the rental prices have remained unchanged compared to years.

Lorina Rada, broker of the CPM agency, says that in this area it is not easy to find cheap 1+1 properties for rent. While for 2+1 properties, the maximum prices continue to remain at last year's levels, from 700 to 800 euros per month.

Even in areas such as Don Bosco and Zogu i Black, prices have risen. From 500 euros per month that were the 1+1 year houses in these areas, the rental price has reached 600 euros per month this year. The increase is 20%.

While for properties with 2+1 area, rental prices have reached up to 800 euros, from 650 euros, which was the highest price for years.

There was also an increase in rental prices in the peripheral areas. In areas such as Kinostudio, Astir and Fresku, the price of rent in 1+1 apartments ranges from 350 to 600 euros, while the prices ranged from 350 to 450 euros per month. For 2+1 properties, rental prices this year range from 450 to 900 euros, from 350 to 500 euros in the previous year.

Dritan Leka, from the CPM real estate agency, predicts that prices will rise again in the suburbs, especially in Astir and Paskuqan.

"In both of these areas, due to urban and infrastructural developments, in the future there will be not only an increase in rents, but also in the sale of apartments. Their development will automatically affect the price of property, which has already started to reflect the changes".

Daily rent reduces the stock of apartments for long-term rent

The increase in the number of foreign tourists, who prefer accommodation in apartments for daily rent, due to cheap prices, has significantly increased the number of residential structures registered on the Airbnb and Booking platforms.

Stela Dhami, from Colliers Albania, says that the addition of these structures has reduced the long-term rental stock, making prices more expensive.

"The prices follow the growth trend, especially in the central areas, knowing that the residential stock is directly related to the flow of residents in the city.

Given that in Albania, in recent years, there continues to be a significant increase in visitors, who at least spend a few days in the Albanian capital, then many of the residences in the central areas have returned to the model of residences given for daily rent. So in the Airbnb model.

In Tirana, the property stock is being used for hotels. With all the projects that are being built in the hotel industry, again the accommodation capacity of the hotel industry in Tirana remains relatively low for a city with this movement and flow of visitors.

Also, we still do not have a decision-making at the local or central level that can intervene in the market to limit this stock, which in itself limits the long-term residential stock.

Directly, this causes upward pressure on prices and the financial inability of locals to accommodate themselves in long-term rental residential units.

Let's not forget the movements developed in Portugal and Spain, against Airbnb platforms, as the pressure and impossibility of renting an apartment for residential purposes has increased among local residents.

Increase in demand

While the supply is limited, the demand for rental properties is increasing. The increase in supply is one of the main factors driving up rents, according to real estate market agents.

"Currently, the demand is dominated by young couples looking to live in apartments for rent, as they are financially unable to buy, and by foreign nationals who work remotely.

Recently, the number of foreigners choosing to live in Tirana has increased, due to lower costs than the countries they come from. We have, for example, clients from Canada who, if they used to stay in daily rental homes, now prefer long-term rentals.

Demand is led by foreigners from professions in fields such as IT, finance or marketing, who certainly have the flexibility of working online", says real estate agent Lorina Rada from the CPM agency.

While young couples, according to Mrs. Rada, prefer rental properties near the center areas, due to the proximity to the workplace, to avoid using the car.

The increase in the sale prices of apartments is another factor that is influencing the price of rents, according to Mr. Ylli Sula, the leader of the "Key Data" index.

"The increase in purchase prices has influenced the increase in rent, as the higher fee shortens the return period of the investment of the purchased property.

The offer of apartments for daily rent has been added to the market. This has come about because of expediency. If an owner buys a property, it is more profitable to invest for daily rental than long-term, since for 10 or 15 days of daily rental, he manages to secure the income he would receive for a month. But this has reduced the supply of long-term rental housing.

Among other things, there is an increase in demand from many young couples who cannot afford to buy an apartment at today's price level. The best option for them remains housing in rented apartments", he asserts./ Monitor magazine