Foreign Direct Investment in Albania reaches €1.1 billion in first nine months of 2024
According to the Bank of Albania, Foreign direct investment (FDI) in the country totaled €1.1 billion in the first nine months of 2024, marking an increase of €56 million compared to the same period in 2023, according to the latest figures from the Bank of Albania. This growth highlights the continued interest of foreign investors in the Albanian market, particularly in the real estate sector.
Why is this important: The increase in FDI underscores Albania’s growing appeal as a destination for international capital, particularly in sectors like real estate, energy, and financial intermediation. Real estate accounted for 20% of investments, driven by foreign buyers who purchased 27% of homes sold this year, largely in Tirana and coastal areas. Existing investors reinvested €234 million, a 15% year-on-year increase, reflecting confidence in Albania’s market stability. However, a 17% drop in capital injections compared to last year signals the need to diversify investments across more industries.
Key sectors driving investment: The real estate sector led FDI inflows, attracting €263 million during the nine-month period. Other sectors drawing significant investment include:
- Financial Intermediation: 19%
- Hydrocarbons: 14%
- Energy: 11%
FDI figures at a glance:
- January–September 2023: €1,105 million
- January–September 2024: €1,161 million
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