Prices of coffee, rent and flooring have increased by 5.4 to 7 percent, almost twice and more compared to the overall price level, according to the detailed inflation table from INSTAT.
Rents for apartments have increased significantly since 2021 and have continued this trend until mid-2025. Especially in the period between January 2023 and July 2025, the growth has been stable, with monthly rates often reaching 3% to 5% on an annualized basis.
In July 2025, the annual change in rental prices was 5.4%, up from 0.9 percent in February 2025. This growth rate has reflected the pressure that Albanian families are facing, especially in urban areas, where demand for rental housing remains high due to urbanization and the high influx of tourists, especially in Tirana where there is also internal migratory movement.
A major factor that has influenced the increase in the cost of long-term rentals is related to tourist developments, where many buildings have been rented out for short periods, removing them from the long-term rental market, which mainly has local families as clients.
If you rent out your house monthly, according to data from real estate agencies, in the capital, a 1+1 apartment, the cheapest is in the Fresku area, which ranges from 330-400 euros, the most expensive in the former Blloku and Air Albania Stadium areas, up to 800 euros/month. For 2+1 apartments, the rent starts from 550 euros for a 2+1 and reaches 1300 euros in the Air Albania Stadium and former Blloku areas.
Another category that has seen significant price increases above the overall average is non-alcoholic beverages and café services. In July 2025, average coffee prices increased by 6% compared to July 2024.
The prices of coffee, tea and water offered in public spaces have increased steadily, especially after 2022, reflecting rising costs for staff salaries and coffee import prices.
This does not seem to have had much impact on consumption demand, as the café remains an important part of Albanian culture. However, for consumers with limited incomes, daily café attendance has increasingly become a luxury that is difficult to afford.
While rents and drinks in cafes remain among the sectors with the highest growth, several other categories have also shown fluctuations. Also, floor coverings, although a product that does not have much weight in household budget expenses, are constantly increasing.
In July 2024, prices in this group increased by an average of 6.7%. A year earlier in July, this change was 2.9%. Although overall inflation rates have started to fall compared to the peak in 2022, prices are not returning to previous levels, becoming a permanent burden on consumers./ Monitor
