Tirana is expected to add 192 thousand m² of new offices from 100-story towers

2025-10-12 09:59:00, Ekonomi CNA

Tirana is expected to add 192 thousand m² of new offices from 100-story

In Tirana, the offer for office spaces is expected to be significantly enriched, thanks to new projects that envisage the construction of towers from 40 to 100 floors, as well as other large urban developments.

According to Stela Dhami from Colliers Albania, these projects are expected to exert upward pressure on rental prices, but their effect will depend on the pace at which new spaces will actually enter the market.

Since the construction and commissioning of these facilities takes time, the impact on the market can extend over a long period.

“Tirana has consolidated itself as a hub for large mixed-use developments. Around 192,338 m² of office space is under construction, with notable projects such as the 'Book Building', 'T'Rock', Bulevardi i Tiranës, 'Lake Park Central', 'Eyes of Tirana', 'The Cliffs Project' and 'Lion 2 Residence'.

Several high-rise towers (40–100 floors) have also been announced, but are still awaiting approval. As most new projects include office components, central locations are experiencing intensified competition and increasing pressure on rents,” she highlights.

Also during 2024, the office market in Tirana stabilized and began to recover after a period of uncertainty. The total amount of offices remained almost the same at around 189.6 thousand square meters.

"This shows that new construction is on track to be completed, after a large increase of 31% in 2023. There are more A and B+ class offices in the market, and we are moving towards the best spaces," the Colliers Albania analysis emphasizes.

The geographical distribution of office supply remained largely unchanged in 2024. About 82% of offices are located in the central business district and within the city, while 18% are in the suburbs.

“The central area attracts more new businesses looking for quality offices.

"Because there are few large, quality offices in the central area, new buildings are also being built outside the city, such as on the Tirana-Durrës highway and in the Farka area. These are mainly used as company headquarters," Colliers Albania emphasizes.

2025 is expected to bring new investments and the entry of other international and retail brands.

“Colliers Albania” also highlights in the report that 2025 is expected to be particularly dynamic for the retail sector in the country. “Fashion Gallery Tirana”, a new shopping center with an area of ??5,000 square meters, will start operating near TEG and the Eastern Bus Terminal in Tirana, bringing brands such as “Sinsay” and “Pepco” to Albania for the first time.

Likewise, projects such as "Eyes of Tirana" and Bulevardi i Tiranës will add nearly 7,900 square meters of new commercial space, while well-known regional investors such as "Viva Fresh" from Kosovo have strongly entered the market with the acquisition of the "SPAR Albania" network from the BALFIN Group.

Plans are also underway for the construction of a new logistics center by "Lidl" near Durrës, which will serve as a base for the expansion of their network throughout Albania.

Meanwhile, BALFIN Group, in partnership with "Big CEE Europe", has announced a new wave of construction of retail parks, with the first project in Shkodra, expected to open in 2027.

One of the most important developments of the year was the sale of "Fashion Group Albania" (FGA), one of the leading operators of fashion brands in shopping malls, marking a key moment in the retail landscape in the country.

After the Covid-19 pandemic, store rents increased by up to 38%

After the Covid-19 pandemic, rents for shops in shopping malls and main streets of Tirana increased by up to 38%.

In 2020, according to data from real estate agencies, the maximum prices of premises for shops on main streets were 40 euros per square meter, while the maximum rent for shops in shopping malls reached 52 euros per square meter.

For 2024, according to Colliers Albania, maximum rents have reached 70 euros per square meter per month for shopping centers and 55 euros per square meter per month for main retail streets.

The main shopping malls are almost all occupied, often with waiting lists, attracting international brands.

Quality retail units in shopping malls remain in high demand. Although online commerce continues to grow gradually, online retailers, especially low-cost ones, have begun to enter the market, somewhat impacting small physical and local retailers.

However, physical stores continue to dominate retail sales overall.

Overall, according to the latest report published by "Colliers Albania", the commercial real estate market in Albania has marked a steady recovery during 2024, with positive signals for the continuation of this trend in 2025.

According to the data, the total stock of space in shopping centers increased to 211,395 m², from 203,395 m² a year earlier, thanks to the completion of several new projects.

Meanwhile, the vacancy rate remained low at just 3.71%, an indicator of strong and stable demand from retail operators./ Monitor Magazine