561 million euros in one year: Foreigners are buying Albania

2026-03-25 21:04:01Biznes SHKRUAR NGA REDAKSIA VOX

561 million euros in one year: Foreigners are buying Albania

Real estate led foreign investments in the Albanian economy for the fourth consecutive year.

According to data from the Bank of Albania, last year foreign investments in real estate in Albania reached a record value of 561 million euros, an increase of 48% compared to 2024.

Real estate brought in more than 34% of the total value of foreign direct investment last year. The share of real estate in the structure of foreign direct investment has marked another strong increase, from 24% in 2024.

The last quarter of 2025 also brought the highest value of foreign investments in this sector, with 158 million euros, 43% more compared to the last quarter of 2024.

The growth of the real estate market in Albania in recent years is being supported to a considerable extent by demand coming from foreign investors.

Foreign investments in property are especially typical for coastal areas, where, despite rising prices, they remain competitive compared to other coastal countries in the region.

The strong increase in property prices in recent years has made real estate an even more attractive alternative and has increased the number of buyers who have purchased properties for investment purposes.

The Bank of Albania estimates that at the end of 2025 the stock of foreign investments in the real estate market in Albania reached 2.63 billion euros, an increase of 29% compared to the previous year. In the last decade, the stock of foreign investments in real estate has almost increased by 17 times. However, the increase in the stock of investments has not only come from new flows, but also from changes in the exchange rate and from the increase in their value, due to the increase in prices.

The second sector by specific weight to total foreign direct investment last year was financial services. This sector brought in investments worth 291 million euros or approximately 18% of the total. Investments in this sector increased by 1.4% compared to the previous year.

The banking sector continues to bring in significant investment flows, supported by high annual profits and increased regulatory capital requirements in recent years, while last year two new entities received preliminary approval for licensing.

The stock of foreign investments in the financial sector is estimated by the Bank of Albania at around 1.91 billion euros.

The trade sector follows, which last year brought in foreign investments worth 162 million euros, a value equivalent to 10% of all foreign investments for 2025. Foreign investments in trade increased by 51% compared to the previous year. The stock of foreign investments in the sector is estimated at 934 million euros. The increase in investments in the trade sector is particularly related to several important purchases made by businesses from Kosovo in Albania last year.

Investments in the extractive industry last year fell to 161 million euros, 25% less than in 2024. After the departure of the Dutch company Shell, they remain largely linked to investments by the main crude oil extraction company, Bankers Petroleum, and to a lesser extent with other investors in the mining sector. The stock of investments in the extractive industry last year reached 2.72 billion euros.

Meanwhile, the energy sector is showing a decline, with investments last year falling to 107 million euros, 38% less than the previous year. Energy, however, remains the sector that leads the stock of foreign direct investments, with 3.84 billion euros at the end of last year.

According to data from the Bank of Albania, foreign direct investments last year reached a record figure of 1.65 billion euros, the highest historical level. The value of foreign investments increased by 1% compared to the previous year. (Monitor)


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