DIVERSION/ I'm in the Epstein files, says Gjati in an attempt to divert attention from the theft!

 Kliko këtu për të tjera
Voxpress:

PARADOX/ Property prices will increase, even though demand is declining!

2026-01-18 09:44:56Biznes SHKRUAR NGA REDAKSIA VOX
Illustrative photo

The new reference prices for districts will enter into force on January 1, 2026. As happened in Tirana in 2023, the new reference prices for the sale and purchase of apartments in districts are expected to increase the cost for construction entities, especially in coastal areas.

Erjon Harizi, Chairman of the Board of Directors of the Albanian Builders Association (SHNSH), predicts that the increase in references is expected to automatically affect the increase in the obligation for the infrastructure impact tax.

This means that costs for builders will increase as reference prices increase. Mr. Harizi underlines that there will be higher costs as a result of the increase in the obligation for the infrastructure impact tax. This will be reflected in the sale prices of apartments, for coastal areas and for the Municipality of Kamza.

"One of the additional costs for builders is expected to be the increase in reference prices throughout Albania. As the references increase, the cost of construction also increases.

This means that the cost impact for builders will be proportional to the percentage increase in new reference prices. Without a doubt, this cost will have an effect on increasing property prices.

Another factor is the increase in labor costs, which is directly affecting construction costs. Regarding the prices of construction materials, so far the market appears relatively stable, with slight fluctuations, which are not expected to have a significant impact on the final prices of apartments.

Compared to previous prices, the increase in references, after the entry into force of the changes, reaches up to 196%, which is for the new cadastral area near the Port of Durres. The increase reaches up to 79% compared to previous reference prices, for cadastral areas in Vlora, Saranda or Himara.

For this reason, according to the chairman of the SHNSH board, more significant increases in construction costs are expected in the coastal areas of Durrës and Qerret, where reference prices are expected to increase more strongly. While in Tirana, the effects of the changes will be felt in the Municipality of Kamza.

The new district price map, which comes into effect on January 1, 2026, adds 54 new cadastral zones. Their number reaches 119 zones from the 65 that were previously.

Referring to the decision “On the approval of the methodology, rules and procedures for determining the taxable value of immovable property 'buildings', calculating the tax on the building and its payment”, the highest changes in reference prices for the districts result in Durrës.

With the new map, Durrës will be divided into 13 cadastral zones with prices ranging from 45 thousand lek to 200 thousand lek per square meter, up from 67.5 thousand lek which was the previous price.

In Durrës, the highest changes of 196%, compared to the previous price, are for cadastral zone no. 13, which on the ground coincides with the Port of Durrës, where the "Durrës Yachts Marina" project is also being developed.

In this area, after the decision comes into force, the price will be 200 thousand lek per square meter, up from 67.5 thousand which is the only reference price for the sale and purchase of apartments in Durrës.

As in Tirana, for builders in the districts, the infrastructure impact tax from new construction is subject to all entities that request to be provided with a development permit and a construction permit for residential, administrative, production, service, etc. facilities. The tax is paid by builders before the construction permit is issued.

For the calculation of the infrastructure impact tax, the tax base is the value in Lek per square meter of the sales price of the construction, whether for residential purposes or for services. While the sales price per square meter is based on the reference values ??of the methodology approved by the government.

According to the decision "On the system of local taxes and fees in the city of Durrës for 2023", approved in December 2022, for the city of Durrës, the infrastructure impact tax for residential buildings that are not intended to be used for tourism, industry or public services is 8%.

For a residential building with an area of ??100,000 square meters, near the Port of Durres, according to calculations with the current reference price, the infrastructure impact tax liability for the builder is 540 million lek.

The tax liability, calculated at the new reference price, which comes into effect on January 1, 2026 for a construction with an area of ??100 thousand square meters, is estimated at around 1 billion lekë. The builder's tax liability will increase in the same percentage as the change in references.

There is also a high increase in reference prices for other coastal areas, such as: Himara, Saranda, Vlora and the island of Sazan. With the new map, Himara is divided into 5 cadastral zones, where the highest price increase of 141% is for zone no. 1. The price reaches 140 thousand lek per square meter, from 58 thousand lek per square meter.

Saranda will also be divided into 5 cadastral zones, where for zones no. 1 and no. 3, the price reaches 100 thousand lek per square meter or 78.6% more than the previous price.

Vlora will be divided into 7 cadastral zones, 4 of which are within the city, and the other zones will be Radhima, Orikum and Sazan Island. In Vlora, the highest increase in reference prices is on Sazan Island.

Until now, the island of Sazan has not been habitable. The latter is included for the first time as a cadastral area in the map of the methodology for calculating the building tax, following the presentation of the development of the residential project by the company "Affinity Partners" of entrepreneur Jared Kushner, son-in-law of President Donald Trump.

For the island of Sazan, the reference price is 200 thousand lek per square meter or 233% more than the previous price for the city of Vlora.

Increased demand from foreigners will further increase coastal property prices by 2030

In addition to reference prices in coastal areas, the increase in property prices is also expected to be driven by increased demand from foreign buyers.

Jonian Antoni, administrator of the real estate agency "Century 21 Albania", predicts that during 2026, the demand for coastal properties from foreigners will continue to increase, due to the still lower prices that Albania offers compared to countries in the region.

According to him, the rise in prices for coastal properties will be inevitable at least until 2030. The annual price increase is expected to fluctuate from 4% to 12%, depending on the area.

"Demand in coastal areas continues to be solid and positive. During 2025, the highest interest has been received in areas with low and medium prices, such as Shëngjini, Lalëzim Bay and especially the Durrës coast. However, good sales and positive prices continue on the South coast", says Mr. Antoni.

He emphasizes that the demand-supply ratio on the coast remains balanced and that this trend is expected to continue through 2026. Over 60% of purchases in coastal areas are made by foreigners or the diaspora.

Comparing the Albanian market with that of Greece, Croatia and Montenegro, where prices are over twice as high as in Albania, Mr. Antoni predicts annual price increases.

"Increases range from 4–5% in some areas to 10–12% in the most elite areas. This is expected to continue until 2030, when Albania's membership in the European Union is planned," he underlines.

In 2025, coastal real estate prices increased by 20 to 67%, reflecting an active market oriented mainly towards foreign buyers.

Real estate agents previously claimed that the price increase was driven by increased demand, especially for real estate in coastal areas, such as: Golemi in Qerret, Vlora, Radhima, Orikum and Saranda. Demand on the coast continued to be dominated by foreign nationals, mainly from landlocked European countries such as the Czech Republic, Poland and Hungary.

In 2025, due to increased demand from foreigners, higher price increases were recorded in areas of Vlora, such as Lungomare, Radhimë and Orikum.

In the second line of construction in Lungomare, sales prices have increased by 33 to 67% compared to the previous year. According to data from real estate agencies, from 1,500 euros per square meter that properties in Lungomare were sold for last year, in 2025 prices fluctuated between 2,000 and 2,500 euros per square meter.

On the front line of construction, prices reached between 2,500 and 3,500 euros per square meter, due to a lack of supply and high demand.

Since 2023, residential projects have continued to be added to the Radhima area. Sales prices range from 2,000 to 3,000 euros per square meter, compared to 1,500–2,000 euros in 2024, representing an increase of 20 to 33%.

In Orikum, prices for low-end apartments have increased from 800 to 1,300 euros per square meter (an increase of 63%), while the maximum prices have remained at the level of 1,500 euros per square meter. This area is also sought after for property purchases by immigrants, mainly those living in Italy, who use the apartment for summer holidays.

In Saranda, in the summer of 2025, sale prices for apartments in new constructions with proximity to 1,000 meters from the sea were offered at prices of 2,000 to 2,500 euros per square meter. On the first line, prices have reached 3,000 to 3,500 euros per square meter. In resorts, apartments are being sold at prices of 4,000 euros per square meter.

For real estate market agents, the increasing trend of demand for properties from foreign tourists has led to a decrease in supply and an increase in prices.

According to local real estate agencies, rising prices have caused demand for property from foreigners to enter its second year of decline.

Even in Golem, demand continued to be led by foreign citizens during 2025. Arjan Gjuzi, a real estate agent from "Century 21 EON", said earlier that Czech, Polish and Hungarian citizens are looking to buy apartments in Golem.

According to him, foreigners are more likely to buy for investment purposes, to rent them out daily. Due to increasing demand and decreasing supply, the sale prices of apartments on the first line in Golem reached 2,000 euros per square meter. The increase was 33% compared to 2024.

Near the Kavajës Rock area, property prices increased by 11% compared to the previous year. The selling price reached 2,000 euros per square meter from 1,700 euros per square meter, which was the maximum level for 2024.

Property prices within the city of Durres also remain high, at 2,000 to 2,500 euros per square meter. According to real estate agents, these high prices are influenced by limited supply and stable demand.

Due to high prices for almost a decade, demand from locals in Golem remained low. Only in 2025 did locals return to buying, due to the offer of installment sales.

Even in the Qerret area, the increase in apartment prices continued for 2025.

According to data from real estate agencies, on the first line of construction, prices reached up to 2,000 euros per square meter, or 33% more compared to last year. On the second line, prices go up to 1,700 euros per square meter, which represents an increase of about 40% compared to 2024.

Real estate agencies: Tirana is showing signs of overcrowding, market uncertain for 2026

For real estate agencies, the real estate market in Tirana has started to show signs of oversaturation. The administrator of the real estate agency "Century 21 Albania", Jonian Antoni, says that the high supply risks creating unsold apartment stocks, a situation that requires monitoring for 2026.

"Tirana has become a complex market with a great variety of products. Regarding the offer, we can say that Tirana today has a very diverse offer of products, starting from elite properties in elite neighborhoods, central properties in the downtown area and around, peripheral properties outside or around the Small Ring Road and the Big Ring Road, and suburban properties in areas of Tirana, but in its units such as Paskuqani, Kamza, Vora, Dajti (Fresku) etc.

We can say with all our hearts that both demand and supply in all areas of Tirana have been high. So, in the cyclical construction market of Tirana, today we are at a moment where the supply of products is high, but also the demand continues to be at satisfactory rates, being about 20% less demand than two years ago, but still 30% higher than the period before the pandemic.

Unfortunately, we do not have concrete data from the Cadastre or the Municipality on the real number of supply (total units for sale) nor the real number of demand (sales in 2025) or previous years.

Regarding the sale prices of apartments in Tirana, Mr. Antoni says that the market is uncertain because supply and demand are high, and if supply is not managed well in 2026, stocks could create financial problems, so the situation should be monitored carefully.

"While prices are very much related to supply and demand. For the time being, prices have been stable. Let's say that from the end of 2024 to the end of 2025, prices have neither increased nor decreased. Prices have not changed at present and the performance of supply and demand is being reviewed.

Normally, in a good economic situation, supply and demand should be balanced, meaning there should be more or less the same supply as current demand and no stocks should be created. When we have balanced supply and demand, prices increase at the rate of inflation or slightly more.

Since supply and demand have been high in recent years, this makes the market a little unclear, because sales continue at a normal pace, but the high supply begins to create stocks and these stocks, if not managed properly, create financial problems for investors or builders.

"At the moment we do not see problematic stocks yet, but the situation should be closely monitored in 2026, hoping that demand increases to equalize supply, or supply decreases to equalize demand," he asserts.

According to the administrator of the real estate company "Century 21 Albania", the entry into force, on January 1, 2026, of the property revaluation law with a 5% tax from 15% applied to sales and reference prices is not expected to significantly affect the supply-demand ratio or the total volume of sales.

Mr. Antoni underlines that this process is necessary every 5 years to reflect market growth and can provide opportunities for more favorable tax utilization for owners.

"In principle, I do not think that the revaluation of properties affects the increase or decrease in demand/supply. I think it is a necessary process that should be done every 5 years, because Albania is a country with high growth and as a result, those who own properties should be given the opportunity to adjust them to market growth."

It is also an opportunity to pay less taxes for a family/seller who plans to sell in the next year or years to come, and as a result revalues ??the property with less taxes.

But I don't think this affects the total volume of sales and the demand/supply ratio.

On the contrary, I think this law distorts the market as a whole a little, especially for properties that were built a long time ago and benefit from this law. For example, in the 2–3 months before the law, these properties are not sold and wait for the law; then it takes 2–3 months to be revalued, and then they come on the market.

As a result, a vacuum is initially created in the market and then more supply is thrown into it, deforming it. The results of this deformation vary according to the revaluation period.

Demand is expected to increase in the suburbs of Tirana; In Kamëz, prices will increase due to references

The Chairman of the Board of Directors of the Builders' Association, Erjon Harizi, predicts that in 2026 the construction sector as a whole is expected to maintain the same performance as in 2025, with stability or slight growth during 2026.

According to him, the main problem remains the long time it takes to obtain construction permits, which affects the development of new projects.

"Overall, for 2026, demand in the real estate market in Tirana and other major cities is expected to be satisfactory.

In the capital, demand for apartments is expected to be satisfactory, with a focus on properties priced below 1,500 euros per square meter, mainly in suburban areas such as Unaza e Madhe, Paskuqani, Kamza and the Aviacion area. These properties are preferred mainly by young couples and families looking for affordable housing.

In the center of Tirana, prices have reached 3,000–3,500 euros per square meter and new developments are limited, however sales continue to be recorded.

"In major cities it is difficult to distinguish whether properties are purchased for investment or for residence, so it can be said that the ratio between the two is equal. In the coastal market, a significant portion of properties are purchased for investment."

Harizi predicts that overall for 2026, the demand for properties in Tirana will be stable, but the strongest demand will be for properties in the suburbs, where prices are more affordable. While price increases are expected mainly in the suburbs, according to him, in areas like Kamza, which will mark an increase in reference prices and consequently in apartment prices.

In 2026, real estate agencies do not expect an increase in apartment prices in Tirana. "Just like a year ago, we do not foresee an increase in prices in Tirana, where price stability is expected for the next two years. Prices are neither expected to increase nor are they expected to decrease," says Jonian Antoni from "Century 21 Albania".

By June 2025, according to the calculations of the “Keydata” index, the average price per square meter of an apartment in existing buildings in Tirana reached 1,830 euros. The average price was calculated based on data for 90% of them for the prices of existing apartments, that is, for buildings built 5, 10 or 15 years ago and 10% for the prices of new buildings.

Compared to 2005, the earliest year when the calculation began, prices are 2.8 times higher. The average price of apartments in 20 years has almost tripled compared to 2005.

In 2024, Albania was also ranked among the countries that have recorded the highest price increases in Europe, according to the report "On the Real Estate Index 2025" compiled by the international company "Deloitte".

The report noted that the average sales price of apartments nationwide in 2024 reached 1,620 euros per square meter. Compared to 2023, the average price increased by about 17%.

Meanwhile, in Tirana, according to the Deloitte report, the average sale price of apartments reached 2,000 euros per square meter. In downtown areas such as the former Blloku or Skanderbeg Square, average sale prices reached 3,000 to 3,500 euros per square meter.

Also, according to a field survey by "Monitor", it turned out that for some areas in Tirana for 2025, prices changed within nine months. There was a rapid increase of 10 to 33% in areas such as the former Blloku, near the Artificial Lake, Porcelani and the area near the Olympic Park./ monitor.al


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×