Albania is attracting more attention from international property investors, but the strongest decisions are built on disciplined analysis rather than momentum. This guide focuses on one practical part of the investment process and the questions NordAlp believes should be answered before capital is committed.
Key takeaways
—Obtain a written schedule of common costs.
—Check whether major future repairs are being reserved for.
—Assess building governance, not only the fee amount.
—Include service charges and maintenance in the base-case yield.
Net yield starts below the headline rent
Apartment buyers often model rent, management and tax while treating building-level costs as minor. In practice, service charges can include lift maintenance, security, cleaning, landscaping, pool operation, common electricity, concierge, waste, insurance and administration. Resort developments can have a particularly wide range of shared services.
The investor should obtain a written budget or estimate and understand whether charges are fixed, variable or linked to the size of the unit.
Low charges are not always good news
A building with unusually low service charges may be underfunding maintenance. That can create future deterioration or large one-off assessments. Investors should ask whether there is a reserve or sinking fund for major items such as facade work, lifts, pumps, roofs, pool equipment and common mechanical systems.
The absence of a reserve does not automatically make a building unattractive, but the owner should recognise that future capex may arrive unpredictably.
Governance matters as much as the budget
Foreign owners need to know who controls the building manager, how budgets are approved, how arrears are handled and what reporting owners receive. A well-maintained building can protect rental performance and resale value; weak governance can damage both.
For off-plan investments, the management structure and expected fee schedule should be reviewed before purchase, not introduced as a surprise at handover.
Put building costs into the base case
NordAlp prefers to model service charges and a maintenance reserve explicitly. If the exact fee is unknown, the investment memo can use a conservative allowance and show sensitivity. The analysis should also ask whether the cost is likely to rise as amenities age.
The objective is to compare properties on net owner cash flow rather than on marketing yield.
Sources & further reading
- Bank of Albania - Survey on developments in the real estate market
- INSTAT - Construction Cost Index for Dwellings, Q1 2026
Written for general information, not as advice. Figures and rules change; every live mandate is verified against current law and current comparables.