Rents Rise, but Returns Remain Low / How Many Years Does It Take to Recoup the Money Invested in an Apartment in Tirana?

Albania’s real estate market generally offers modest returns on the purchase of rental properties. Although rents have increased in recent years, following the upward trend in sale prices and driven especially by growing demand for short-term rentals fueled by tourism, the return on investment remains weak compared with benchmark standards for property investment returns.

According to AirDNA data, during the first half of 2026, monthly rental income for properties listed on Airbnb in Tirana was €765 per month, or €9,180 per year, in gross terms.

Meanwhile, according to the Keydata Albania index, the average sale price in Tirana reached €2,100 per square meter in the middle of this year.

If the value of an apartment is calculated based on an average area of approximately 80 square meters, the purchase price would amount to around €168,000, excluding furnishing costs.

Based on these figures, the annual rental return comes to approximately 5.5%, but this is always calculated in gross terms. If the costs of furnishing and subsequently maintaining the property, taxes, expenses, as well as the depreciation of the building and furnishings were taken into account, the net return would be significantly below 5%.

Based on the above figures, the gross payback period for the investment through rental income would be at least 19 years. According to global standards, the optimal payback period for a property investment through rental income is 12 to 15 years.

Based on the estimates above, it can be concluded that rental returns in Albania’s housing market are not particularly attractive.

For comparison, the current yield on 20-year Albanian government bonds is 6.5%, while the yield on 15-year bonds is 6.22%, with an upward trend. The yields on zero-risk financial instruments are higher than the average gross return from investing in a residential property through rental income./Monitor