Are apartment prices in Tirana starting to slow down?

After years of uninterrupted price growth, the housing market in Tirana is showing the first signs of a significant shift. The latest data published by the Bank of Albania indicate that, for the first time in a long period, real estate agents are reporting slight declines in property prices in both the central and suburban areas of the capital.

Although the Albanian real estate market continues to record price growth at the national level, the pace of expansion is slowing, and Tirana appears to be entering a new phase of stabilization.

What Is Happening to Housing Prices?

According to the Bank of Albania’s Survey on the Performance of the Real Estate Market, the Fischer House Price Index increased by 11.7% during the second half of 2025 compared with the previous six-month period and by 28% compared with the same period in 2024.

However, this growth is no longer being driven by Tirana.

In the capital, the price index remained almost unchanged compared with the first half of 2025, while annual growth was limited to only 4.4%. This represents a significant slowdown compared with the double-digit growth rates that characterized the market in recent years.

Even more noteworthy is the fact that real estate agents reported slight declines in transaction prices for properties sold both in central areas and in the suburbs of Tirana.

Is This the Beginning of a Market Correction?

Not necessarily.

The data from the Bank of Albania do not indicate a broad market decline, but rather a process of normalization following a period of exceptionally rapid growth.

In recent years, housing prices in Tirana have risen much faster than household incomes. This has led to a gradual slowdown in demand, particularly in the higher-priced segments of the market.

In this context, the stabilization or slight decline of prices in certain areas can be viewed as a natural development of the market.

Property Sales Fell by 35%

Another indicator confirming the slowdown in market activity is the decline in the number of transactions.

During the second half of 2025, a total of 1,273 properties were sold, compared with 1,959 properties during the first half of the year.

This represents a decrease of approximately 35%.

On average, each real estate agent completed around eight sales during the period, compared with an average of eleven sales in the first half of the year.

Experts also link this slowdown to expectations surrounding the property revaluation process, which remained pending for several months and influenced the decisions of many buyers and sellers.

Homes Are Selling Faster

Paradoxically, despite fewer transactions being completed, the time required to sell a property has decreased significantly.

At the national level, the average selling period fell to 9.1 months, compared with 11.6 months previously.

In Tirana, the decline was even more pronounced, dropping from 11.1 months to just 8.1 months.

This suggests that properties entering the market at realistic prices and in desirable locations continue to attract strong buyer interest.

The Stock of Unsold Properties Continues to Decline

One of the most important indicators of market health remains the inventory of unsold properties.

The Bank of Albania notes that the number of unsold properties continued to decline during the second half of 2025, extending a trend that has been in place since 2016.

This means that supply is gradually being absorbed by the market and that there is still no oversupply of properties available for sale.

In practice, this is one of the main reasons why prices have not experienced significant declines despite the slowdown in sales activity.

The Coastline Is Becoming the New Growth Engine

While Tirana is entering a phase of stabilization, Albania’s coastal areas continue to attract investment and growing demand.

According to the Bank of Albania, the coastal property market provided the largest contribution to the increase in the national housing price index.

Growing interest in holiday apartments, second homes, and tourism-related investments is supporting price increases in cities and areas along Albania’s coastline.

This trend is gradually shifting the center of gravity of the Albanian real estate market from Tirana toward the coast.

What Does This Mean for Buyers and Investors?

For homebuyers in Tirana, recent developments may represent a better opportunity for negotiation than in recent years, when competition was intense and prices were rising continuously.

For investors, the market is becoming increasingly selective. Location, construction quality, energy efficiency, and rental potential are becoming more important than the simple strategy of purchasing property with the expectation of automatic price appreciation.

At the same time, coastal areas continue to offer the strongest growth potential, supported by tourism development and rising interest from both domestic and international investors.

The latest report from the Bank of Albania confirms that Albania’s real estate market is transitioning from a phase of rapid growth to a more mature and sustainable stage.

For the first time in many years, housing prices in central and suburban Tirana are showing signs of a slight decline, while the coastal market is becoming the main factor driving national price growth.

This does not signal the end of the growth cycle, but rather the emergence of a more mature market, where price, quality, and location will play a more important role than ever before.

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