Housing prices in Albania shot up in the second half of 2025, with the fastest increases along the coast, the Bank of Albania reports. The national Fischer House Price Index climbed 14.6% over six months and 41.7% compared to last year.

Tirana led the charge, with prices jumping 5.1% over the half-year and 32.6% year-on-year, according to the Bank.

Higher prices are slowing sales, stretching the average time to sell a property to at least 12 months. Construction costs rose too, but at a much slower pace than property values.

Rental demand is heating up as well. Agents say rents are climbing and overall rental requests outpaced the previous six months.

Bank loans continue to drive purchases. Agents report that 58% of residential and commercial properties sold relied on bank financing, and in 62% of these cases, loans covered up to 60% of the property’s price.

Foreign buyers are pulling back slightly. Only 15% of properties sold in the first half of 2025 went to non-residents, down from 18% in the previous period.

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