Foreign investment in real estate reached 610 million euros in January-June, up 141% from the same period in 2025. It accounted for more than half of total foreign direct investment during the period.

In the second quarter alone, real estate investment reached 438 million euros, the highest quarterly figure on record, up 194% year-on-year.

The surge in property investment has been linked to major development projects, particularly in tourist areas, as well as increased purchases by non-resident buyers.

Bank of Albania survey data showed that around one in five homes sold in the first half of the year were bought by non-residents. About 85% of those buyers were citizens of European Union countries.

Foreign capital also flowed into the financial sector, which attracted 181 million euros, up 23% year-on-year. Manufacturing drew 92 million euros, trade 67 million euros and energy 66 million euros, while information and communications attracted 48 million euros.

Overall, foreign direct investment rose 50% from the first half of 2025 to its highest level on record for the period, the central bank said.

/e.xh/j.p/u.sh/

The central bank said businesses had improved their financial position, with their net debtor position relative to gross domestic product falling to 108% at the end of 2025, from 118% in 2020-2021.

The stronger performance has also been accompanied by increased bank financing. In the first half of 2026, business lending was supported by higher financing for investment and in foreign currency, while the average interest rate on new loans in lek and euros was around 6%.

The Bank of Albania said businesses’ solid financial performance had helped ease their debt burden. Its surveys showed that most businesses operated at a profit, while sales continued to perform positively, particularly among large companies and in the construction sector.

Lending to households also expanded, rising by around 17% year-on-year in the first half of 2026. Housing loans, mainly in national currency lek, accounted for the largest share of the increase.

The growth in lending was also supported by easier credit standards and a higher approval rate for loan applications, reflecting improved access to financing for businesses and households.

Foreign direct investment recorded particularly strong growth in construction, real estate and wholesale and retail trade, the central bank said.

/e.xh/j.p/u.sh/

Speaking at a news conference, Ibrahimaj said the economy grew by 3.71% in the first quarter, above the Western Balkans average of 3.6% and significantly higher than the European Union average of around 1%.

She said growth was driven mainly by public administration, health and education, professional and scientific activities, construction and real estate services.

Agriculture, forestry and fishing posted a slight decline of 0.49%, affected mainly by weaker performance in livestock and fisheries, although crop production rose 8.7%, Ibrahimaj added.

Industry contracted by 2.17%, weighed down by declines in extractive industries and textiles, while electricity generation and food processing recorded growth.

Services remained the dominant sector, accounting for 49.6% of the economy, followed by agriculture at 15.5%, construction at 10.7% and industry at 10.2%.

Ibrahimaj said macroeconomic indicators showed continued stability and resilience to external shocks, noting that public debt fell to 48.8% of GDP in the first quarter, down from 54.1% a year earlier.

Austria was the largest source of FDI in the period with around 60 million euros, followed by Italy with 49 million euros, the Netherlands with 48 million euros, and Türkiye and Kosovo.

By sector, 42.5% of investments were concentrated in real estate, 16.8% in financial and insurance activities, and 9.4% in electricity, gas and water.

Ibrahimaj said 9,591 new businesses were registered in the first five months of the year, while business turnover rose by 9.3%, or 142.8 billion leks compared with the same period in 2025.

She said foreign reserves were an important indicator of the country’s ability to withstand global economic volatility.

/u.sh/

Recent balance of payments data from the Bank of Albania shows that foreign investors continue to favor the real estate sector, pouring roughly €174 million into properties—representing 43% of total FDI inflows. Trailing real estate are financial intermediation at 17%, energy at 9%, transportation at 5%, and hydrocarbons at 4%.

The total foreign direct investment structure reveals a shift toward new capital injections. While reinvested earnings from foreign companies still formed the majority at €206 million (51%), they contracted by 3.7% compared to the previous year. Conversely, new capital investments grew by 25.3% to €183 million, reflecting rising investor confidence. Debt instruments continued to play a marginal role, fluctuating around €14 million by the end of the quarter. /j.p/p.s./

During his “Let’s Talk” podcast, PM Rama said that, “Foreign investments remain on a strong upward trajectory, with 1.21 billion euros already secured in 2025 following a stellar 2024 of 1.6 billion euros, solidifying Albania’s reputation as a top investment destination in the region.”

Rama also stated that the foreign investment stock surpassed 16.6 billion euros, a level that according to him was unimaginable a few years ago.

According to the prime minister, these indicators imply the change in Albania’s position in the region, getting transformed from a market viewed with skepticism into a premier destination for long-term, tangible investment.

He emphasized that new applications, interests and opportunities mean that the future will be better than today, as a result of transformation reforms, economic stability, improved business climate and the creation of a predictable environment for long-term investments. /r.e/p.s./

Rama addressed the “Tirana Economic Forum,” a meeting with entrepreneurs and international experts organized in the Albanian capital under the auspices of the Delphi Forum, which focused on development opportunities in the country.

He said FDI in 2024 reached 1.58 billion euros, the highest level ever recorded, and that the upward trend continues into 2025.

“Capital does not choose randomly; it goes where there is stability, clarity, and direction. Today, Albania is precisely that destination – a country with stability, clarity, and leadership,” Rama said.

The government head emphasized that Albania is no longer seen as a remote corner on the map but as a country where reforms are implemented in practice, and transformation is visible in everyday life.

“Our country stands as a pillar of stability and a growing economy. We opened all chapters of EU accession negotiations in record time, doubled GDP, and continue to see growth in tourism and infrastructure – from ports to railways. We are driving digital transformation at a remarkable pace,” he said.

Rama added that his government is combating corruption, modernizing the state, raising wages, and revitalizing the defense industry.

“Nothing happens by accident. Growth comes step by step through work and trust. Our economic progress is not just quantitative but qualitative. We are building an economy measured not only by volume but by value, productivity, and innovation,” he said.

/r.e/a.f/us.sh/

The central bank said that most of the foreign capital was directed toward strategic sectors, including real estate, financial and insurance services, extractive industries, manufacturing, and energy – particularly electricity, gas, and water supply.

In 2024, total FDI inflows amounted to EUR 1.6 billion, a 6% rise from the previous year.

Real estate accounted for nearly a quarter of this figure, with EUR 325 million in inflows, up 17% year-on-year, reflecting continued investor appetite for property in Albania’s urban and coastal areas.

e.xh/j.p/u.sh/

Blendi Gonxhja, Minister of Economy, Culture, and Innovation, emphasized the strategic importance of this development for Albania’s economic stability and growth.

“FDI reached a new record in Q1, 2025. With an inflow of 362 million euros during the January -March period, the highest FDI inflow ever registered during this period,” Gonxhja stated.

Data show that the largest investors in the first quarter came from Türkiye, accounting for 13.8% of total FDI, followed by the Netherlands (13.5%), Italy (12.7%), Austria (8.6%), and Germany (7.7%).

Investment was predominantly concentrated in the country’s real estate sector, which absorbed 28.7% of FDI, indicating sustained interest in the construction and property market. The finance and insurance sectors accounted for 20.7%, reflecting growing confidence in the banking sector and financial services overall.

The extractive industry attracted 14.1% of investments, confirming its traditional role as a key pillar for foreign capital inflows, while manufacturing and trade each held an equal share of 8.8%.

This record-high level of investment sends a clear signal of foreign investors’ confidence in Albania’s economic climate.

The increase in foreign capital not only aids in job creation and infrastructure development but also strengthens Albania’s economic integration with international markets.

/j.p/u.sh/

Addressing a campaign rally in Berat, PM Rama noted that Albania is also the country that has recorded the highest influx of foreign direct investments compared to other countries in the region.

The government head highlighted the increased employment rate, exports and the wages reform.

PM Rama criticized the media for feeding the public a distorted interpretation of real Albania.

“Albania’s transformation can be clearly shown through facts and figures. During our terms in office, Albania is the country with the highest GDP growth in the Western Balkans. Albania’s GDP ratio is now estimated at over 25 billion euros, significantly up from just 10 billion euros when we took office. It is our goal to take Albania’s GDP to 35 billion euros by 2030,” Rama said.

Rama also noted that the value of Albania’s exports has grown to over 9 billion euros from less than three billion euros in 2013.

He urged Albanian citizens to back his ruling Socialist Partym saying  the May 11 vote will decide the fate of the future generations to become equal among the equals within the EU family.

/r.e/a.f/u.sh/

Central bank data show that the real estate sector proved to be a primary attraction for foreign direct investment with a total of 379 million euros, followed by the extraction industry with investments value estimated at 214 million euros, processing industries with 173 million euros and electricity with investments reaching 166 million euros.

In the third quarter of 2024, FDI inflow reached 423 million euros, with reinvested profit accounting for the largest share.

According to central bank, the Netherlands, Italy and Türkiye are top investors in Albania. The increase in FDI underscores Albania’s growing appeal as a destination for international capital.

/a.f/u.sh/