Relocation conducted an analysis of the Albanian housing market in the first half of 2025. In 2025, the market is moving towards normalization after an extremely turbulent period from 2022 to 2024. There are fewer building permits, the growth in construction costs has slowed down, prices in the capital have stabilized, and prices on the coast remain high. The share of deals involving foreigners is close to one in five for the half-year, based on the latest Bank of Albania survey (data for H2’2024), and their investments exceeded €380 million in 2024.
Building permits. In Q1 2025, 258 permits for new buildings were issued (-17% y/y). This is a sign of caution on the part of developers after record years and a factor that will restrain supply in 2025-2026 (we are awaiting data for Q2).
Construction costs. The housing construction cost index (INSTAT) rose by 1.0% y/y in Q1 2025, significantly slower than a year ago (3.4% y/y), which partially relieves price pressure from materials and labor.
Prices: capital vs. coast
According to the Bank of Albania (latest published market survey, H2’2024), about 18% of apartments sold in Albania were purchased by non-residents, of which ≈77% were EU citizens. This is an important benchmark for the first half of 2025: the share of foreigners remains significant, especially in coastal municipalities.
Mortgage loans finance a significant portion of transactions, but the share of cash purchases remains high in resort areas.
Rentals and profitability
Foreign buyers
As for forecasts, supply will grow moderately. As for prices, there will be more stable dynamics in the capital and higher seasonal volatility on the coast. Demand from non-residents will remain strong, especially in coastal locations and rental projects.
Source: http://relocation.com.ua/analysis-of-the-housing-market-in-albania-in-the-first-half-of-2025/
Relocation.com.ua has prepared an analysis of the Georgian residential real estate market in the first half of 2025: prices are rising, demand is leveling off, and rents are cooling down.
In June, 3,236 apartment deals were registered in Tbilisi, which is +11% y/y (−2% m/m) — the first noticeable rebound after the sluggish spring months, according to TBC Capital. The average asking price in the city is $1,266/m² (+6% y/y), and the average rental rate is $10.6/m² (−12% y/y).
In Tbilisi, 15,865 deals worth $1.2 billion (+2.6% y/y) were registered in the first five months of 2025, with the average price on the primary market in May at $1,331/m² and rent at $9.3/m².
As for Batumi, 7,129 transactions were registered in Batumi in the first half of 2025 (+4.8% y/y), with a total market volume of $397 million (+16.1% y/y). Weighted average prices: new buildings $1,184/m² (+16.1%), secondary market $1,169/m² (+20%).
According to Galt & Taggart’s assessment, sales growth continued in the second quarter in both the primary and secondary markets; rental rates in June were +1.6% y/y, and yields remain high compared to “pyramids.”
Earlier it was reported that the average gross rental yield in Batumi remains at around 8.8% (end of winter 2025).
Prices across the country: double-digit growth in annual terms
According to the Geostat housing price index, in Q1 2025, housing prices in Georgia were +11.53% y/y (in real terms, adjusted for inflation — +7.78%).
Against the backdrop of the high base of previous years, the issuance of permits in Tbilisi in 5M25 declined moderately (by area −1.1% y/y), and in May, 25 permits were issued for ≈203 thousand m² (−18.3% y/y). This is holding back supply growth and supporting prices in the primary segment.
After peaking in 2022–2023, rents in Tbilisi stabilized and fell to $9.3–10.6/m² in May, depending on the source and observation period. Gross yields in Tbilisi remain around ~8–11%, which is comparable to yields in resort locations.
Foreign buyers: activity continues, with Israelis playing a notable role
Government agencies do not usually publish official monthly breakdowns by nationality. However, a Galt & Taggart survey of systemic developers (covering ≈45% of the primary market in Tbilisi) found that buyers from Israel accounted for 11% of all sales in 5M25. Demand from local and “regional” buyers (Russia, Ukraine, Middle Eastern countries) is also significant, but the shares vary from project to project.
Analysts expect moderate, “healthy” growth while maintaining attractive returns in resort locations (Batumi) and a gradual recovery in demand in the capital as rates and incomes stabilize. External demand will remain selective (investment apartments and lots for short-term rent).
Installment plans with extended repayment terms offered by developers are in high demand among homebuyers and are an alternative to government mortgage programs, Ukrainian developers told Interfax-Ukraine.
“In 2024-2025, we are seeing growth in the share of customers who choose long-term interest-free installment plans from KAN Development. This is due to increased buyer confidence in the future, especially given the improved security situation in Kyiv. The eOselya and eVidnovuvannya programs have had a limited impact on our sales so far. Most customers choose other financial solutions, in particular our own programs,” said the KAN Development press service.
In recent years, there has been a growing demand for longer installment plans, noted Irina Mikhaleva, SMO Alliance Novobud. In addition, developers are offering programs with reduced down payments.
“At the start of construction, we can offer longer installment plans—12, 24, or 36 months. This is because, as a rule, installment plans are provided until the project is commissioned. We also frequently receive requests from buyers to reduce the down payment, which can be anywhere from 10% to 50%,” said the expert.
The Kovalskaya Group’s internal installment plans offer a fixed price per square meter for up to five years with a down payment of 30% of the property value. According to the company, they take an individual approach to buyers’ needs.
“Installment plans have become more flexible: if a customer realizes that they will not be able to make monthly payments, we are open to dialogue and ready to work together to find a convenient solution. It is possible to agree on an individual schedule, for example, to extend the installment period, temporarily reduce the amount of payments with a subsequent return to standard payments, restructure the loan, or exchange the apartment for another of the same size or in another construction project,” explained the developer.
The company “RIEL” in the second launch complex of the capital’s Brother project offers buyers the opportunity to purchase housing in installments until the facility is put into operation in the second quarter of 2028, noted Alla Chipak, sales coordinator at “RIEL” in Lviv. In addition, in some residential complexes, the down payment has been reduced to 10% of the apartment price.
Given the popularity of the developer’s renovation option, Intergal-Bud also offers the possibility of paying for renovations in installments along with the apartment, said Anatoly Kovrizhenko, deputy commercial director of Intergal-Bud.
According to the DIM group of companies, developer lending programs with extended installment terms are an alternative to state mortgage programs with loan limits. The company has its own financial programs, under which the down payment is 30% of the cost of the property, and the installment period is up to five years.
In addition, DIM offers a long-term installment plan of up to 10 years.
“In early June, we launched a long-term installment plan in hryvnia for a period of 10 years, with the option of early repayment, price fixing in hryvnia, fixing the price per square meter in the contract, without linking it to the exchange rate or market price increases, with a fixed interest rate of 10% per annum in hryvnia and a down payment of 30%. It was planned to launch as a pilot project for two months, testing it in large residential complexes such as Metropolis, Lucky Land, and Park Lake City. However, we received quite a few inquiries from buyers, which turned into real deals, so we continued the program until the end of the summer,” said Alexander Nasirovsky, managing partner of DIM.
Installment plans with extended repayment terms offered by developers are in high demand among home buyers and are an alternative to state mortgage programs, Ukrainian developers told Interfax-Ukraine.
“In 2024-2025, we are seeing an increase in the share of customers who choose long-term interest-free installments from KAN Development. This is due to increased buyer confidence in the future, especially given the improved security situation in Kyiv. The ‘єОселя’ and ”єВідновлення” programs have had a limited impact on our sales so far. Most customers choose other financial solutions, in particular, our own programs,” said the press service of KAN Development.
In recent years, there has been a growing demand for longer installment plans, noted Irina Mikhalova, CMO of Alliance Novobud. In addition, developers are offering programs with reduced down payments.
“At the start of construction, we can offer longer installment terms—12, 24, or 36 months. This is because, as a rule, installments are provided until the project is commissioned. We also frequently receive requests from buyers to reduce the down payment, which can be either 10% or 50%,” the expert said.
The Kovalskaya Group’s internal installment plans offer a fixed price per square meter for up to five years with a down payment of 30% of the cost of the home. According to the company, an individual approach to the buyer’s needs is practiced.
“Installment plans have become more flexible: if a customer realizes that they will not be able to make monthly payments, we are open to dialogue and ready to work together to find a convenient solution. It is possible to agree on an individual schedule, for example, to increase the installment period, temporarily reduce the amount of payments with a subsequent return to standard payments, carry out restructuring, exchange an apartment for another area or in another construction project,” explained the developer.
The company “RIEL” in the second launch complex of the capital’s Brother project offers buyers to purchase housing in installments until the facility is put into operation in the second quarter of 2028, said Alla Chipak, coordinator of the sales departments of “RIEL” in Lviv. In addition, in some residential complexes, the down payment has been reduced to 10% of the apartment’s cost.
Given the popularity of the developer’s renovation option, Intergal-Bud also offers the possibility of paying for renovations in installments along with the apartment, said Anatoliy Kovrizhenko, sales director at Intergal-Bud.
According to the DIM group of companies, developer lending programs with extended installment terms are an alternative to state mortgage programs with loan amount limits. The company has its own financial programs, under which the down payment is 30% of the cost of the property, and the installment term is up to five years.
In addition, DIM offers a long-term installment program of up to 10 years.
“In early June, we launched a long-term installment program in hryvnia for a term of 10 years, with the possibility of early repayment, a fixed price in hryvnia, a fixed price per square meter in the contract, without reference to the exchange rate or market price increases, with a fixed interest rate of 10% per annum in hryvnia and a down payment of 30%. It was planned to launch as a pilot project for two months, to test it in large complexes of quarterly development such as Metropolis, Lucky Land, and Park Lake City. However, we received quite a few inquiries from buyers, which turned into real deals, so we continued the program until the end of the summer,” said DIM managing partner Alexander Nasikovsky.
In July 2025, Ukrainian citizens ranked fourth among foreign buyers of real estate in Turkey, according to data from the Turkish Statistical Institute (TÜİK).
Russian citizens were the leaders in terms of the number of properties purchased, with 315 transactions. In second place were Iranian citizens (152 transactions), followed by German citizens (135 transactions).
Ukrainians purchased 134 properties in July, which allowed them to take fourth place in the ranking.
Iraqi citizens closed out the top five with 120 transactions.
The top ten also included Azerbaijan (93 transactions), Kazakhstan (65 transactions), Saudi Arabia (64 transactions), Palestine (52 transactions), and China (51 transactions).
It should be noted that a month earlier, in June 2025, Ukrainian citizens ranked second in terms of the volume of housing purchases in Turkey, second only to Russians.
According to TÜİK, the Turkish real estate market continues to attract foreign buyers, but the distribution of leaders by nationality varies significantly from month to month depending on the tourist season, price fluctuations, and investment interests.
According to a recently published report by Deutsche Bank, the highest increase in rents for three-room apartments in European city centers between 2020 and 2025 was recorded in Southern and Eastern Europe, reaching 206%. These figures are from a study covering 67 cities worldwide, including 28 in Europe.
According to Eurostat, housing prices in the EU rose by 27.3% quarter-on-quarter (from Q1 2020 to Q1 2025), while rents rose by 12.5% between June 2020 and June 2025. However, growth exceeded the average in central city areas.
The most expensive and cheapest cities in 2025:
The highest rental growth (2020–2025):
Overall, the findings show that Southern and Eastern Europe have lost their relative affordability in terms of housing rentals, while the major financial and political centers of Western and Northern Europe remain the most expensive, but affordability in Eastern Europe is declining rapidly.
