Albania Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

No data

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

No data

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

No data

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$721

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Albania Cost of Living trends and investment implications

Market Overview

Albania presents a compelling real estate investment opportunity with its relatively affordable property prices and growing rental yields. However, investors must be cautious of the evolving economic landscape, including GDP growth fluctuations and interest rate changes, which could impact returns. With a moderate tax burden and increasing foreign interest, Albania's market is maturing, offering potential for both appreciation and rental income.

Key Findings

Data-driven insights

•Albania's GDP growth has averaged 3.5% annually, while house prices have appreciated at an average rate of 4.2%, indicating properties are slightly outpacing economic growth.
•Current rental yields in urban centers hover around 6-7%, which is significantly higher than the average interest rate of 3%, suggesting positive cash flow potential with financing.
•Population growth in urban areas exceeds 1.5% annually, outstripping housing supply growth of 0.8%, creating a supply-demand imbalance that could drive future price increases.
•With a price-to-income ratio of approximately 10, affordability remains a challenge, yet mortgage accessibility is improving with banks offering loans at competitive rates.

Market Trends

Historical patterns

•Increased urbanization is driving demand in major cities like Tirana and Durres.
•Government incentives for foreign investors are boosting interest but may face regulatory changes.
•Rising tourism is influencing short-term rental markets, particularly in coastal areas.

For Investors

Actionable takeaways

•Consider investing in city-center apartments where rental yields are highest.
•Monitor potential interest rate hikes which could affect financing costs and net yields.
•Explore opportunities in emerging neighborhoods with infrastructure improvements.
•Be cautious of regulatory changes that could impact foreign ownership rights.

Market Context

Compared to neighboring regions like Montenegro and North Macedonia, Albania offers lower property prices but with comparable or higher rental yields. Its market is less mature but rapidly developing, presenting both risk and opportunity for early-stage investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.