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Is it worth buying a house to rent out? Here's how long it takes to get your investment back

2026-08-29 23:02:28Biznes SHKRUAR NGA REDAKSIA VOX
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The Albanian real estate market generally offers modest returns from purchasing rental properties.

Although rental prices have increased in recent years, following the increasing trends in sales prices and driven especially by the increasing demand for daily rentals brought by tourism, the measure of return on investment remains weak compared to the benchmarks of return on investment in property.

According to AirDNA data, for the first 6 months of 2026, the monthly rental income for properties listed on AirBNB in ??Tirana was 765 euros per month or 9,180 euros per year, in gross terms.

Meanwhile, according to the Keydata Albania index, the average sales price in Tirana in the middle of this year reached 2100 euros per m2.

If we calculate the value of an apartment for an average area of ??about 80 m2, the purchase price would result in around 168 thousand euros (not including furniture costs).

Based on these figures, the annual rental return is around 5.5%, but always estimated in gross terms. If we were to take into account the costs of furnishing the apartment and further maintenance, taxes, costs, as well as the depreciation of the building and furnishings, the net return would be significantly lower than 5%.

Based on the above figures, the gross return on investment through rental would be a minimum of 19 years. According to global standards, the optimal return on investment in a property through rental is 12 to 15 years.

Based on the above assessments, it can be concluded that the return from renting in the housing market in Albania is not very attractive.

For comparison, the current yield on 20-year Albanian government bonds is 6.5%, while that on 15-year bonds is 6.22%, with an increasing trend.

The yields of zero-risk financial instruments are higher than the average gross return from investing in renting out a home.monitor.al


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