Albania’s real estate market is seeing a lot of interest in its smaller towns. As more people look beyond the capital, Tirana, places like Durrës, Saranda, and Vlorë are becoming popular among investors and homebuyers. This trend is fueled by factors like increasing tourism, government-backed development plans, and affordable property prices compared to neighbouring countries.
Why Smaller Towns Make Great Investments
Durrës
Durrës is Albania’s primary port city and a major economic hub. The government has ambitious plans to redevelop the port into a modern marina, which makes the city a key player in regional trade and tourism. This transformation is expected to increase property demand in the area, with a focus on apartments, villas, and commercial space
- Fact: The project is estimated to cost €2 billion and will include luxury residential areas, hotels, and leisure facilities.
Saranda
Saranda is one of the most visited coastal towns in Albania, thanks to its proximity to the Greek island of Corfu and UNESCO-listed Butrint National Park. The town has seen consistent development, with new resorts, apartment complexes, and restaurants catering to both locals and international tourists.
Vlorë
Vlorë is another coastal hotspot benefiting from its strategic location at the entrance of the Albanian Riviera. The area has seen investments in infrastructure, including improved roads and ports, making it more accessible. Properties here, especially those with sea views, are in high demand.
Shkodër
Its affordable property prices and proximity to Lake Shkodër make it attractive to retirees and those looking for a peaceful lifestyle
Key Factors Driving Demand in Small Towns
- Affordability
Property prices in smaller towns are significantly lower than in Tirana. For example, apartments in Durrës or Saranda can start as low as €800–€1,200 per square meter, compared to €1,500+ in Tirana’s central areas. This makes them accessible to both local and international buyers. - Growing Tourism
Albania’s tourism sector is booming. In 2024, the country received over 9 million tourists, a 20% increase from the previous year. Small towns, especially along the coast, are benefiting from this influx. Many buyers see these areas as perfect spots for rental properties or vacation homes. - Infrastructure Improvements
Investments in roads, airports, and ports have made small towns easier to reach. For example, Saranda now has a faster ferry connection with Corfu, while Durrës is set to benefit from its marina project. - Government Incentives
The Albanian government has introduced policies to attract foreign investors, including tax breaks and streamlined property ownership processes for non-residents. These measures have increased interest in the market.
Challenges to Consider
While the opportunities are exciting, there are challenges to be mindful of. Rapid development in some towns raises concerns about overbuilding and environmental impact. Buyers should also check legal and ownership regulations in advance.
Final Thoughts
Albania’s small towns are no longer just quiet corners of the country; they’re becoming prime spots for real estate investment. With affordable prices, strong government support, and rising tourism, towns like Durrës, Saranda, and Vlorë offer excellent potential for both short-term and long-term returns.
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