Luxury Living in Albania
Investing in Albania is compelling due to strong economic growth, a booming tourism sector, and government incentives for foreign direct investment (FDI), particularly in real estate, energy, and infrastructure.
Strong Economic Fundamentals and Growth
- GDP Growth: The World Bank reported a strong GDP growth of 3.3% in 2024, expected to accelerate slightly to 3.4% in 2025, driven largely by private consumption, tourism, and construction.
- Growing FDI: Albania hit a historical record of FDI in the first nine months of 2024, totaling €1.16 billion, with real estate being a top choice for foreign nationals, attracting €380 million in 2024 alone.
- EU Integration: The country’s ongoing efforts toward European Union (EU) accession provide a strong framework for structural reforms, improving the business climate and fostering long-term stability and growth.
Key Investment Sectors
Several sectors offer significant potential, supported by government initiatives.
- Tourism: The tourism sector is booming, with 11.7 million visitors in 2024 and a significant increase in tourism-associated businesses. This growth creates opportunities in hospitality, real estate, and related industries. The government offers incentives, such as tax exemptions for qualifying four- and five-star hotels/resorts.
- Real Estate: The real estate market has seen significant price increases, especially in Tirana and coastal cities, driven by high demand from both domestic and foreign buyers. Rental yields, particularly from short-term tourism rentals, are high, reaching an estimated 8-10% annually in some coastal areas.
- Energy and Infrastructure: There are substantial opportunities in renewable energy projects (solar, wind, hydroelectric), transport networks, and logistics hubs. The new Vlora International Airport, expected to open in 2025, is set to further boost connectivity and tourism along the Albanian Riviera.
- Agriculture and Technology: Other sectors attracting attention include agriculture, fisheries, technology parks, and innovation hubs, all of which are supported by specific government incentive programs.
Key statistics
VISIT ALBANIA
Focus on its stunning beaches, clear Ionian waters, and nearby islands.