Tirana has been ranked as the second most unaffordable city in Europe for buying a property, according to the latest report by the international platform Numbeo, which measures the ratio between property prices and income. With a ratio of 17.9, the Albanian capital ranks just behind Lisbon, which holds the first place with 19.4, and ahead of cities such as Split with 17.8, Milan with 17.8 and Belgrade with 17.0.
This indicator measures how much higher the price of a house is compared to a family's annual income, and the higher the ratio, the more difficult it becomes for local residents to buy a house. Tirana's positioning in second place indicates a very low level of affordability, even more problematic than in many cities in richer European countries.
In Italy, for example, Milan has a ratio of 17.8, while Rome is significantly lower at 14.6. In Spain, Madrid comes in at 12.4, Barcelona at 11.8, and Malaga at 11.4. Athens and Thessaloniki also have a ratio of 14.0, remaining below Tirana’s level. In the region, although real estate markets have experienced strong growth, Tirana remains among the least affordable, with Belgrade at 17.0, Ljubljana at 14.8, Skopje at 13.4, and Zagreb at 11.4.
This ranking reflects a rapid development of property prices in the Albanian capital in recent years, while incomes have remained much lower than in European Union countries. In many areas of Tirana, especially in the center and in new projects, apartment prices have reached 2,000 to 3,000 euros per square meter, while the average net salary in the country is estimated at around 600 to 750 euros per month.
This large gap between prices and incomes has made purchasing a home increasingly difficult for Albanian families, requiring long-term financial commitments and often substantial loans. At the same time, the market has also been influenced by investment demand, including purchases by expatriates and investors, as well as the development of new residential projects at higher prices.
The Numbeo ranking highlights the contrast between Albania’s income levels and property prices, placing Tirana on par with some of Europe’s most expensive markets in terms of affordability. This development confirms that, while Albania remains one of the lowest-wage countries on the continent, housing prices, especially in the capital, have been rising at a much faster pace, making home ownership increasingly unaffordable for a large portion of the population./ekofin.al
