Tirana leads Europe in high office rent returns, but experts warn of risks

2025-10-17 10:02:00, Ekonomi CNA

Tirana ranks first in Europe for office rental yield, according to a comparative analysis of major European markets by international real estate company Colliers International.

By 2025, with a rate of return of 8.5%, Tirana leaves behind cities such as Istanbul (8%), Sofia (7.75%), and Belgrade (7.5%). In Tirana, average office rents range from 19 euros per square meter per month in secondary areas to 30 euros per square meter per month in central business areas.

Compared to the region, Tirana leads the region in office rental prices, where in Belgrade the average price in central areas is 18 euros per square meter per month, in Zagreb 17.5, in Sofia, Bulgaria 16 euros per square meter per month, etc.

In contrast, cities like Zurich and Geneva in Switzerland record the lowest yield of just 2.5%, followed by Paris (4%) and Milan (4.2%), reflecting more stabilized but less profitable markets.

Although office rental prices in these cities are among the highest in Europe

The highest average office rent price for 2025 is recorded in Paris with a value of 97.5 euros per square meter per month for offices in major business centers, followed by London with prices of 97 euros per square meter per month or Zurich with 87 euros per square meter per month.

While Albania is attracting attention as a growing investment destination, experts suggest caution in analyzing the factors that affect the long-term sustainability of this market.

Yield (rate of return) is not just an indicator of the profit an investor can make from renting an office.

It is also a reflection of the quality of the market, its level of risk and maturity.

Colliers Albania real estate experts told Monitor that more mature and stable markets usually have lower yields because they are considered safer and offer long-term stability.

"In these markets, investors do not seek very high returns as the risks are minimal."

In contrast, newer and less consolidated markets, such as those in Southeast Europe, face more uncertainty. For this reason, yields are higher, as investors expect to be compensated for the risks they take.

"So, a high yield does not necessarily mean that the market is better, but that it contains more risk and requires higher compensation for the investor," the experts underlined.

In the case of Tirana, the yield from office rents is among the highest in Europe.

This is a reflection of the fact that the market is still developing, with potential for growth, but also with challenges and uncertainties./ Monitor