Vlora Ranked Europe’s Top Investment Destination

In May 2025, Forbes officially ranked Vlora, Albania as the top investment destination in Europe for properties under €100,000. While some might be surprised to see this city outshine more familiar names, those paying attention to Albania’s evolution know: Vlora is on the rise.

A City in Transformation

Vlora it’s a city undergoing one of the most dynamic transformations in Southern Europe. From the heart of the historic city to the turquoise-lined shores of Palasa, Dhermi, and Jale, the entire region is seeing a wave of development, infrastructure improvement, and international interest.

Key drivers of this momentum:

• New Vlora International Airport set to open soon, improving direct access from Western Europe and beyond.

• Massive infrastructure upgrades, including coastal road expansion, promenades, and urban design revamps.

• Private and public investments in tourism, mixed-use developments, and high-end residential zones.

• Government incentives for tourism and luxury real estate developments, including tax reductions, fast-track permits, and favorable land-use policies.

Lifestyle and Location

Vlora sits at the meeting point of the Adriatic and Ionian Seas, offering a landscape few cities in Europe can match: pristine beaches, rugged mountains, and over 300 days of sunshine per year. But what truly makes it special is its position as the gateway to the Albanian Riviera.

Think of Vlora as the Sorrento of Albania: a vibrant hub that opens up to a coastal stretch reminiscent of the Amalfi Coast, but with a modern edge and far more accessible price points.

From here, the road curves through Palasa, Dhermi, Himara, and eventually Saranda, creating what is quickly becoming one of Europe’s most desirable emerging corridors for lifestyle and investment.

The Numbers Behind the Potential

• Properties under €100K still available even if not for much longer.

• Tourism growth in the double digits year over year, according to INSTAT.

• Foreign investment rising steadily, with growing interest from Italian, German, and Nordic buyers.

Government Incentives for Hospitality Investment

Beyond residential real estate, Albania has introduced some of the most compelling fiscal incentives in Europe for those investing in luxury hospitality. Eligible 4- and 5-star hotel developments can benefit from:

• 0% corporate income tax for 10 years

• 6% VAT on accommodation and services

• Exemptions from infrastructure and building taxes

• Public land lease for as little as €1/m²

To qualify, projects must meet specific criteria including a minimum investment amount (€8M for 4-star, €15M for 5-star) and operation under an internationally recognized brand. These incentives are designed to accelerate high-end tourism growth and attract international operators.

Looking Ahead

Vlora’s inclusion in international investment rankings reflects a broader trend rather than a standalone event. Infrastructure investment, policy alignment, and rising international demand are converging in a location that is rapidly repositioning itself within the Mediterranean landscape.

For investors and observers following Albania’s evolution, Vlora represents a market where visibility is increasing, fundamentals are strengthening, and the window for early positioning is gradually narrowing.

Forbes