Albania » Market Report

It is the right time to invest in Albania property as it is only just emerging and has alot of potential to grow. Ignored by the European community for quite some time Albanian property market is now becoming increasingly popular to invest in. Being at an early stage of development Albania offers a lot of business opportunities. Albania is being tipped as 'the last property frontier expecting to boom in the next five years'.

“Albania 1 Euro” initiative to attract foreign investment by offering overseas firms entry to the Albanian market literally for 1 Euro is paying off. Various sites are available under the Albania One Euro initiative. Industrial sites are better priced in Albania than in Eastern European or other Balkan countries. The easy and quick buying process in Albania, ease of getting finance, absence of property purchase tax and capital gains tax are obvious advantages that the Albanian real estate agents are finding to be working to their advantage. Bustling cities and a beautiful Balkan coastline which is unspoiled and underdeveloped is attracting property buyers to Albania. The number of foreign companies selling property in Albania is on the rise as it right on the doorstep of the EU and also has an added advantage of cheap labour. Albania is attracting a high number of visitors from Italy, Greece, Germany and Italy specially in the months from June to August. As a result of this development we can see a number of well-established coastal resorts in Albania which present some great investment opportunities.

 

Albania property offers off-plan opportunities for those property investors who do not want to take much risk. In general, Albania property represents three types of property investment opportunity: cities, resorts and land. These property markets vary accordingly as they are characterized by different factors like different type of buyers, rental market. As a result, the property investment opportunities in Albania also vary. The Albania property market trend is like that of Bulgaria and Turkey (both of which have coastlines) and is divided into the cities and the coasts – so we have two types of property investment opportunities: city apartments and beach properties.

 

The capital, Tirana, commercial and cultural hub of Albania  provides investors with mid- to upper-market property investment opportunities aimed at the emerging middle classes. Tirana has the most advanced property market in Albania. The growing population here provides great potential for rentals as Albania is fast developing. Buying property here would involve low risk as it is the best bet for growth. It has a great market for city apartments. Outside of the capital, the best places to invest are the wonderful miles of coastline from the north to the south, the Adriatic to the Ionian. The warm seas and pretty beaches make it an attractive investment place.

Capital growth has been around an average of 25% in recent years and expected to do better in the coming year. Albanian properties, lands and other investment opportunities are 75% cheaper as compared to other European markets of Bulgaria, Croatia or Montenegro.The low Albania real estate price makes it easy for foreigners as well as locals to own their very own Albanian property from as little as €20,000 with lots of room for capital. There are no foreign restrictions to buy.

 

Although property market in Albania is not as bad as it was before, International Property Brokers forecast that though market is improving but keeping in mind that it is a developing economy, the global crisis and the risks attached there are still apprehensions at the moment. The furture for property market in the next three to five years looks brighter. The Albanian property market will take off as a result of major infrastructure developments and governments’ business incentives.