Albania's real estate market is making a growing contribution to the country's GDP, with performance across multiple sectors. The hospitality, office, and residential markets are driving this growth, while the retail and industrial sectors are experiencing steady expansion.
The office market is poised for transformation, driven by ongoing construction and development, while the retail sector is positioned for continued growth, supported by both existing investors and the arrival of new brands. The influx of planned and ongoing construction is expected to influence both prices and vacancy rates, with the alignment of supply and demand playing a key role.
Following the entry of international hospitality brands such as Melia, Marriott, and Accor, Albania is now positioned to advance into the next stage of its hospitality development. This phase will be characterized by the development of large-scale, luxury resorts designed to cater to demand from high-net worth individuals.
"Albania continues its tourism momentum in 2025, building on the performance of 2024. The country remains a top-ranked destination, attracting growing interest from global hospitality brands, particularly along the Albanian Riviera," said Stela Dhami, Managing Partner at Colliers Albania & Kosovo. Developments such as Vlora Airport and the Llogara Tunnel have improved access to the south, where June 2025 also marked the opening of the first branded 5-star hotel, MGallery Green Coast.
The office market in Albania, particularly in Tirana, has seen substantial development in recent years. During 2024, the office market in Tirana showed clear signs of stabilization and recovery after an indecisive period. The total office stock remained steady at 189,608 sqm, reflecting the development cycle of upcoming new deliveries. A key highlight in 2024 was the drop in the vacancy rate to 12.55%, down from 21.56% in 2023, indicating improved absorption and signaling a potential turning point for the Tirana office market.
