Southern Albania is rapidly emerging as a premier destination for real estate investment, driven by its stunning coastline, booming tourism, and significant infrastructure developments. From the Ionian Riviera to historic towns like Gjirokastër and the bustling port city of Vlorë, the region offers diverse opportunities for both residential and commercial investors.

Market Trends & Investment Hotspots

Coastal Cities: Saranda, Ksamil & Dhermi

The southern coast, particularly Saranda, is experiencing a surge in property values. In 2023, some neighborhoods saw price increases exceeding 50% year-on-year, with this upward trend continuing into 2024. Well-located apartments in Saranda can generate €8,000–€10,000 per summer in short-term rental income, making it a lucrative option for investors .

Ksamil and Dhermi are also gaining popularity, attracting both tourists and investors seeking properties with potential for high returns.

Vlorë & Llogara: Infrastructure & Luxury Developments

Vlorë is undergoing significant infrastructure improvements, including the construction of a new airport, which is expected to boost tourism and, consequently, the real estate market. The Llogara Pass area is witnessing the development of luxury resorts and villas, catering to high-end tourists and investors .

Gjirokastër & Përmet: Cultural & Rural Appeal

Gjirokastër, a UNESCO World Heritage site, offers opportunities for cultural tourism investments, including boutique hotels and restored Ottoman-era properties. Përmet, known for its natural beauty and thermal springs, is attracting interest for rural tourism and wellness retreats.

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Market Dynamics & Growth Drivers

• Tourism Boom: Albania’s tourism sector is flourishing, with increasing numbers of international visitors drawn to the country’s natural beauty and historical sites.

• Infrastructure Development: Ongoing projects, such as the new airport in Vlorë and improved road networks, are enhancing accessibility and boosting investor confidence.

• Government Support: The Albanian government is offering incentives for foreign investors, including favorable tax rates and simplified property acquisition processes .

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Investment Considerations

• Property Types: Investors can choose from a range of properties, including coastal apartments, rural villas, and commercial developments.

• Legal Framework: Foreigners can freely buy property in Albania, with the process involving standard procedures such as notary services and registration.

• Taxation: Rental income is taxed at 15%, and property owners pay an annual tax of 0.05% of the cadastral value .

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Conclusion

Southern Albania presents a compelling case for real estate investment in 2025. With its blend of natural beauty, cultural heritage, and ongoing infrastructure development, the region offers diverse opportunities for investors seeking both short-term returns and long-term capital appreciation. Whether you’re interested in coastal properties, luxury resorts, or rural retreats, Southern Albania is poised to deliver rewarding investment prospects.