Why Invest in Real Estate in Albania?

Albania is often viewed as an emerging, relatively untapped market with strong growth potential, especially compared to its more developed Mediterranean neighbors.

1. High Growth Potential & Low Entry Prices

• Affordability: Property prices are currently a fraction of those in neighboring EU countries like Greece and Italy, offering an accessible entry point to the Mediterranean market.

• Capital Appreciation: Cities like Tirana and coastal hotspots such as Vlorë and Sarandë have seen continuous, sometimes rapid, price increases, fueled by domestic and foreign investment and major infrastructure projects (like new airports and highways).

2. Booming Tourism and Rental Yields

• Visitor Numbers: Tourism has exploded, drawing millions of foreign visitors each year to the country's Adriatic and Ionian coastlines.

• Rental Income: This high demand, especially along the Albanian Riviera, translates to strong short-term rental opportunities and high seasonal yields, with coastal properties often offering the best returns.

3. Favorable Legal Environment for Foreigners

• Equal Rights: Foreign individuals can generally purchase residential and commercial properties with the same rights as Albanian citizens (i.e., you can own 100% of the property)

• Minimal Restrictions: Unlike some countries, there is no requirement to obtain residency or establish a local company to buy an apartment or house. The main restriction is typically on the purchase of large plots of agricultural land.

4. EU Accession and Infrastructure

• EU Trajectory: Albania is a candidate country for the European Union. Investors who got into countries like Croatia before their EU accession saw significant property value increases. Buying now is seen by many as positioning before a potential future surge in confidence and foreign capital.

• Infrastructure: Significant public and private investments in roads, airports (like the new Vlora International Airport), and coastal developments are improving accessibility and driving up property values in strategic locations.

How to Buy Investment Real Estate in Albania (Step-by-Step)

The process for a foreign individual buying residential or commercial property in Albania is generally straightforward, but it requires careful due diligence, often taking around 3 to 6 weeks to complete.

1. Initial Preparation and Documentation

Your first step is to secure the necessary identification documents and financial groundwork. You must have a valid Passport and obtain an Albanian Tax Identification Number (NIPT), which is essential for any property transaction. It's highly recommended to open a local bank account in Albania to facilitate the transparent transfer of funds.

2. Engage Professional Experts

This is the most critical step to securing your investment. You should hire two key local professionals:

• A reputable, independent lawyer who specializes in real estate and is experienced with foreign buyers. They will protect your interests and perform the mandatory legal checks.

• A trusted real estate agent (especially important if you are not fluent in Albanian) to help you find suitable properties, understand market value, and negotiate the price.

3. Conduct Thorough Due Diligence

Your lawyer will immediately begin the legal verification process, known as due diligence. They will check the property's title and history with the National Cadastral Agency (ASHK) to confirm:

• The seller is the legitimate, sole owner.

• The property is free from any existing mortgages, liens, debts, or legal disputes.

• The property has the proper building permits (especially critical for newer or informally built structures).

4. Sign the Preliminary Contract

Once the due diligence is successfully completed and the terms are agreed upon, both parties will sign a Preliminary Sale Agreement (often called a pre-contract). At this stage, you will typically pay a deposit (usually 10% to 30% of the sale price) to the seller or an escrow account to officially reserve the property and lock in the price and completion deadline.

5. Final Sale and Notarization

The final transaction takes place at the Notary Public's office. The Notary is a public official who ensures the legality of the entire process and bears legal responsibility for the transfer.

• The Final Sales Contract (Notary Deed) is signed by both the buyer and the seller (or their legal representatives).

• The remaining purchase amount is transferred. For transparency, funds are often deposited into the Notary's account first and released to the seller only after the ownership transfer is registered.

6. Pay Fees and Final Registration

As the buyer, you are responsible for certain fees and taxes:

• Property Transfer Tax (usually around 2% of the property's value).

• Notary and registration fees.

• The Notary officially registers the new ownership with the National Cadastral Agency (ASHK). Once the agency completes the transfer, you receive the final Certificate of Ownership, and the property is legally yours.