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Not only apartments, but also rents are becoming unaffordable for Albanians
2026-02-01 11:38:13 / EKONOMI&SOCIALE
Elona and Sokoli are a young couple, 24 and 26 years old, who have decided to start living together. Sokoli's gross monthly salary is 100 thousand lek per month (almost 80 thousand lek net) and Elona's 90 thousand lek per month gross, or 72 thousand lek.
Their net monthly income is around 152 thousand lek.
Initially, they thought about buying a house, in a relatively good area, to save on car, fuel, and parking costs.
With their income, it is impossible for them to buy a house, which on average costs 1,800-2,000 euros per square meter, so they need 160-180 thousand euros for a 90 square meter entrance. The bank finances them up to 70% of the value, for an amount of 110-120 thousand euros.
According to the Bank of Albania, in November, the average interest rate for new loans was 3.84% in Lek and 4.6% in Euro. For a loan of 120 thousand euros, or the equivalent in Lek, the average monthly installment of a 20-year loan, according to the loan calculator, would be 770 euros, or 70 thousand Lek, respectively.
But, according to the criteria set by the Bank of Albania, borrowers must contribute 40% of their income for the first home and 35% for the second home for the installment payment.
In foreign currency, 35% and 30% are financed respectively. Under these conditions, the maximum installment that Elona and Sokoli can afford is about 60 thousand lek per month.
In addition, they would also need to have savings of around 50 thousand euros, which they would need to cover 30% of the apartment's value, very impossible to save with current living costs and real salaries.
Under these conditions, they decided to look for a house to rent near the downtown areas, due to its proximity to their workplace and to avoid using the car.
But even rents in good neighborhoods were no cheaper than 700 euros per month, taking away almost half of their monthly income (46%).
This level significantly exceeds the limits of affordability widely accepted by international standards, where rent should not exceed 30% of the family budget.
In practical terms, to be in a stable financial situation, they would have to pay no more than around 450 euros per month for housing, while the difference of over 250 euros per month that they are required to pay today directly translates into less money for food, utilities, transportation, and savings.
After paying the rent, they are left with about 82 thousand lek to cover all other living expenses, at a time when the prices of energy, food, and services are rising, making it increasingly difficult to start an independent life in the capital without entering a constant cycle of financial pressure and especially to think about expanding their family.
"The high demand for rentals is mainly due to the financial inability of many young families to purchase an apartment, while sales prices have also increased significantly. These two main factors are continuously influencing the increase in rental prices."
Especially in areas like Liqeni i Thatë, near the Dam and near the 'Petro Nini Luarasi' high school, where demand is higher, rents have increased significantly.
"But in general, throughout Tirana, there has been a trend of increasing rental prices and no decrease is expected in the near future," Dritan Leka, one of the directors of the "CPM" real estate agency, previously told "Monitor".
"Expensive rents and apartments are one of the reasons why young people are emigrating," says Stella Dhami from Colliers International, adding that it is the government's duty to make affordable housing available for young people and the population in general.
Based on international experiences, Ms. Dhami recommends that the state can implement social policies, such as offering loans with low interest rates for young families, offering guarantees for collateral, and guaranteeing risk with banks.
"First, the stock of unsold apartments should be registered. After registering this stock, institutions can make agreements with builders and offer the apartments as a partnership with the private sector," she suggests. /Monitor
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