Rental investment: the real ROI in Tirana (2026)

"Buy an apartment, rent it out, it pays for itself in 8 years" — that's the advice you hear in every café in Tirana. The problem? Almost nobody actually runs the numbers. Here's the real math, with concrete figures, not rules of thumb.

Basic formula: gross yield vs net yield

Gross yield = (annual rent ÷ purchase price) × 100. It's the number you hear most often — and it's always higher than reality, because it ignores costs.

Net yield subtracts from annual rent: the tax on rental income, building administration fees, maintenance, and vacancy periods. This is the number that actually tells you whether the investment is worth it.

Concrete example: 1-bedroom, 55m², Komuna e Parisit

• Purchase price: €95,000
• Monthly rent: €450 → €5,400/year
• Gross yield: 5,400 ÷ 95,000 = 5.7%

Now subtract the real costs:

• Rental income tax (~15% on net rent after allowable deductions): roughly €500–600/year
• Building admin + maintenance fee: ~€25/month = €300/year
• Minor repairs + periodic furniture refresh: ~€250/year average
• Assumed vacancy: 1 month out of 12 unrented = -€450/year

Real net rent: 5,400 − 600 − 300 − 250 − 450 ≈ €3,800/year.
Net yield: 3,800 ÷ 95,000 ≈ 4.0%.

That means the apartment pays back its purchase price (ignoring any property value appreciation) in roughly 25 years — not 8, which is what you get from only looking at gross yield.

How ROI changes by neighbourhood

General rule: the more expensive the area, the lower the yield percentage — because purchase prices rise faster than achievable rent.

• Bllok / Centre: high purchase price, high rent, but typical yield 3.5–4.5% — you're paying for prestige and liquidity, not return.
• Komuna e Parisit / Don Bosko: balanced — mid-high price, strong demand from professionals, yield 4.5–5.5%.
• Astir / Kashar: still relatively low purchase price, fast-rising rent — yield often 6%+, but with higher vacancy risk.

Risks nobody puts in the first spreadsheet

• Real vacancy is often longer than 1 month/year — especially in older, unrenovated units.
• Problem tenants — property damage, late payments, legal costs if it escalates to eviction.
• Interest rates — if the purchase is mortgage-financed, a rate rise can wipe out the net yield entirely.
• Unexpected major repairs — roof, plumbing, heating — can eat 2–3 years of net profit in one go.

How to raise ROI without raising the rent

• List directly, not through an agency — a traditional agency takes up to 100% of one month's rent in commission (50% from each side); on Zgjedhja Ime, owners list with 0% commission, always — a full month's rent saved from year one.
• Choose long-term tenants over short-term rentals with higher returns but higher vacancy and cleaning costs, if you don't have time to actively manage.
• Maintain on time — a €50 fix today often prevents a €500 fix in 2 years.
• Re-price the rent every year against the real market — use the valuation calculator as a starting point.

The mandatory caveats

The figures here are illustrative, based on typical 2026 market ranges — not a guarantee. Every property has its own circumstances: condition, exact location, financing. Treat this article as a calculation framework, not a ready-made answer. Before deciding, calculate net yield — not gross — with your own real numbers.

Already have a rental property? List it free on Zgjedhja Ime and save the month of commission you'd otherwise pay an agency.