Property Value Calculator
Estimate a property's value based on rental income, location and market conditions.
Tip: In Albania, property prices are usually higher in Blloku, Sauk i Ri and the Artificial Lake area — rental yield in these areas is 4–5%, while on the outskirts it reaches 6–7%.
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About this digital tool
The property value calculator gives an indicative estimate of a property's value from the rental income it brings, using the capitalisation method (cap rate). Enter the annual rent, the expenses and the capitalisation rate expected by the market, and the tool calculates net operating income and value: value = net income ÷ cap rate. You can also compare it with the asking price.
It is useful for investors, for buyers of rental properties and for owners who want to understand a reasonable price. Real prices depend heavily on location, the condition of the property and market demand, so this is only a guide and does not replace a licensed valuer or comparison with similar sales.
How to use
- Enter the monthly/yearly rental income
- Subtract expenses (maintenance, taxes, insurance)
- Enter the area's cap rate
- Or enter the area's price/m² and the surface
- See the indicative valuation
Frequently asked questions
What is cap rate?
Cap rate (capitalisation rate) = Annual net rental income ÷ Property value. E.g., if the property yields €6,000/year net and the area's cap rate is 5%, the indicative value is €120,000.
How is a property valued in Albania?
The main methods are: (1) Market comparison — prices of similar properties sold recently, (2) Income capitalisation — for rental properties, (3) Replacement cost — the cost of new construction minus depreciation.
How important is location?
Location is the #1 factor. In Tirana, the difference between neighbourhoods can be 2–3x in price/m². Proximity to public transport, schools, shopping centres and green spaces raises value significantly.
How is a rental property valued?
Annual net income (rent minus expenses) is divided by the capitalisation rate. If net rent is 600,000 lek and the cap rate 6%, the value comes to 10,000,000 lek.