The price of real estate in the Albanian capital of Tirana continued to increase during the first quarter of 2022, with the average price reaching €1,143 per square meter.

Property prices have skyrocketed in recent years as developers rush to build new construction across the city.

The cost per square meter increased by 3.2% compared to the end of December 2021. The average property price inside the main ring of Tirana is €1,300 per square meter, rising to €1,600 € to Blloku – a central and very popular area. Outside the large belt, in peri-urban areas, the price is €1,000 per square meter.

The data was published by Keydata Albania and is a private index of real estate prices in the country. They looked at average and media prices across the city which they divided into three divisions; inside the ring, outside the ring and Blloku.

Between 2020 and 2022, the average price across the city increased by €100 per square meter, increasing by €16 in the first quarter of 2022.

A realtor working for a citywide brokerage said demand was high and continuing to rise. When asked who was buying properties, he explained that they were seeing a lot of interest from investors.

“They buy real estate before it’s even built, several apartments at a time. Then sell once built to make a profit. Others buy apartments to rent to foreigners,” he explained.

It is believed, however, that much of the building boom in Tirana is due to dirty money. The Global Initiative against Transnational Crime has estimated that between 300 and 700 million euros of dirty money enters Albania every year, much of which goes to the construction sector.