Foreign investment is galloping: €1.14 billion in six months, up 50%

By Fatos Çoçoli

INSTAT data for the first half of 2026 show a marked increase in foreign direct investment in Albania. For January–June 2026, foreign direct investment reached €1.14 billion, rising by about 50 percent compared with the same period of 2025.

This is a figure of particular importance for our economy, because foreign direct investment represents not just capital inflows. It is linked to real estate, financial capital, energy, trade, technology, services, employment, consumption and the expansion of economic activity.

A particularly important element is the structure of these investments. According to INSTAT data, around 53% of the foreign direct investment flow in the first half of 2026 was linked to purchases by foreigners of apartments and offices in our country.

This means that of the €1.14 billion in investment, around €604 million was tied to real-estate purchases by foreign investors, while around €536 million came from other investment categories.

A 50 percent jump: a signal of strengthening foreign capital interest

The move to €1.14 billion in foreign direct investment in just six months shows that Albania continues to be a destination of interest for international capital.

Table 1: Foreign direct investment 2023–2026

– 2023: €1.49 billion (+8.7%)
– 2024: €1.58 billion (+5.7%)
– 2025: €1.64 billion (+3.7%)
– 2026: €1.14 billion (half-year) (+50%)

An increase of about 50 percent in investment, relative to January–June 2025, means the pace of foreign capital inflows has accelerated markedly, becoming almost a gallop. Why? Because every Italian, Spaniard, German, Englishman, Nordic, even Pole who comes as a tourist to our country plants a desire and interest to invest in buying apartments here.

For a small economy like ours, foreign direct investment carries considerable weight, as it supplements domestic capital and finances activities requiring larger investments than could be borne by emigrants’ savings and domestic capital alone.

Over €1 billion of foreign capital boosts economic activity

A flow of €1.14 billion creates direct and indirect effects on our economy. Investments create demand for construction, building materials, professional services, banks and insurance, transport, trade, energy, technology, legal and financial services, real-estate administration and employment.

That is why the impact of foreign direct investment should not be measured only by the initial amount of capital brought into the country. It has a multiplied domino effect, as part of this capital then circulates in our economy through companies, employees and suppliers.

The fact that 53 percent of foreign direct investment is linked to the purchase of apartments and offices shows that real estate continues to be one of the main channels for foreign capital entering Albania.

This has several economic benefits. First, it brings foreign capital into the Albanian real-estate market. Second, it stimulates construction-sector activity. Third, it increases demand for property-related services such as administration, maintenance, design, financing, insurance and brokerage. Fourth, foreign buyers who use the properties seasonally or permanently also generate demand in tourism, gastronomy, transport and trade.

Investment in finance and insurance strengthens the economic system

Another important part of foreign investment is directed towards the financial and insurance sectors. Foreign capital in these sectors brings new financial products, technology, new management standards, greater competition, expanded services for businesses and individuals, and improved risk management.

For an economy moving towards greater use of electronic payments and modern financial services, foreign investment in finance and insurance also matters for modernising the market.

Diversity of countries of origin in foreign direct investment

According to INSTAT data, Austria leads the foreign direct investment flow with around €121.9 million, or about 80% more than in the same period last year. This shows strengthening Austrian capital interest in the Albanian economy.

Turkey ranks after Austria, with around €111.6 million in investment. The group of countries with considerable flows also includes Italy, the Netherlands and Kosovo, with Italy recording around €88.7 million, and the Netherlands and Kosovo around €66.7 million each, according to the figures given.

Table: Investment flows by country, January–June 2026

Austria €121.9 mln
Turkey €111.6 mln
Italy €88.7 mln
Netherlands €66.7 mln
Kosovo €66.7 mln
Total FDI €1.14 bln

These data show that the sources of foreign capital are relatively diversified and that Albania is attracting investors from several European and regional markets.