Apartment prices have increased over the last few years in Tirana, with rates that exceed even the capitals of the region and Europe.

A report of the United Nations Organization, which evaluates the urban development of Albania, shows that the increase in price may have been influenced by money laundering.

“Organized formal developments target high-priced housing segments. Up to 32 percent of properties sold in the first 6 months of 2021 were purchased by non-residents. Money laundering has probably been a contributing factor to the increase in prices in Tirana and coastal areas,” the report reads.

Even the possibilities to buy a flat are becoming difficult, as with the average price of 1200 euros/m2, Tirana is among the seven main European cities with high levels of housing unaffordability… the report says.

For the United Nations, multi-apartment buildings inherited from the socialist era suffer from a lack of investment and lack of maintenance. The overcrowding rate for the general population is more than 58 percent, which is the highest in Europe, except for Montenegro.

The housing market with mortgage loans is under development, as only 1% of owners pay loans, which shows that the sector remains informal through cash and remittances.