A Guide to Albania Property Investment
With its beautiful frontage on both the Adriatic and Ionian seas and its incredible mountain views, Albania is a country that is gaining a lot of attention from international holidaymakers. As the masses discover the warm Mediterranean climate this country has to offer, investors too are turning their sights towards Albania.
The growing tourism industry, stable government and emerging property market are coming together to make Albania a land of interest for buyers. We at Nubricks.com would cite the following 10 reasons as those that are bolstering investor confidence in property in Albania as a long-term investment commodity: -
1) Government Stability Leads to Investor Confidence in Albanian Property
The parliamentary democracy of Albania is still considered fairly new, but it is taking great strides to bring stability and strong leadership to this southeast European country. Governmental stability has been enjoyed since the 1990s and Albania’s recognition on the worldwide political scene is growing significantly. This is good news for buyers who desire a stable environment to grow their investments in. Albania’s dedication to economic, political and human rights improvements is helping the country gain a great deal of prominence within the international community. Whilst reforms remain ongoing, the country and its government have made incredible progress in recent years.
2) Governmental Programmes to Improve Albania’s Economic and Political Stability are Driving Property Investor Confidence
Albania has adopted a constitution and is taking tough stands to improve its economy and political footing. The country is a member of NATO’s Partnership for Peace Programme and has officially applied for NATO entry. Albania is also taking part in international operations and has even offered troops to support efforts in Bosnia and Herzegovina, Afghanistan and Iraq. Since the formation of its democracy, Albania has been granted membership of the Council of Europe, the World Trade Organisation, the United Nations and the South East Europe Cooperation Process, among other organisations. Its active and committed stance on improvement is very appealing to investors who want to buy in to a developing country’s emergence.
3) Albania’s Relations with the International Community Serve to Bolster Property Investor Interest
Albania has been working hard to implement programmes to change its economic and political standing. As it strives for better international recognition and a greater sense of stability, its relations with neighbouring countries are strong, according to the British government. Albania has been taking stands to help the international community and is actively pursuing closer relations with the European Union. In fact, membership of both NATO and the EU are the prime focus of the country’s foreign policy efforts at the current time. Albania’s drive and desire to take part in the international community and the EU are very encouraging for investors who desire stable political environments within which to invest.
4) Growing Economy and a Broad Range of Natural Resources Make Albania Very Attractive to Investors in Real Estate
Albania is considered by many to be one of Europe’s most impoverished countries. Recent reforms and economic improvements however, are combining to change that picture quite dramatically. Albania’s current GDP is US 9.1 billion and is growing at a rate of about 5% per annum. With an economy that is fuelled by tourism, mining, hydroelectric power production and cement, Albania is forging a stable future for itself on stable foundations. The economic growth and promise that this country is showing is helping boost long-term property investor confidence and commitment greatly.
5) Fast-Growing Tourism Industry Bodes Well for Investors in Albanian Property
As more Europeans and holidaymakers from other worldwide destinations learn of the beauty, history and wonder of Albania, the country’s tourism industry is getting a real positive lift. According to the World Travel & Tourism Council, tourism is up by 5.1% in 2007 already. It should continue to grow at a rate of at least 5.6% per annum through to 2017 as well according to the Council. With a fascinating history that includes initial settlement by the Illyrians and eventual contact with the Greeks, Romans, Venetians, Byzantines and even Ottomans, Albania’s historic sites attract a lot of attention annually. Add to this its wondrous landscapes and pristine coastlines and it is clear why this country is gaining so much attention. Holidaymakers and expats are making the Albanian property market very attractive for investors with a multitude of different strategies in mind.
6) Albania’s Coastline, Warm Climate and Other Geographical Features are Attractive to Holidaymakers and Investors
Albania’s 28,750 square kilometres are packed with natural attractions for expatriates and holidaymakers alike. The country boasts nearly 400 kilometres of coastline along the Adriatic and Ionian seas. Whilst the beaches very much call to holidaymakers, the country’s mountains are considered breathtaking. The climate is mostly Mediterranean, which appeals to holidaymakers and second-home buyers. In some regions however, a continental climate with cold winters is present. The diversity of climate and geography appeals to holidaymakers and expats. This makes the Albanian property market very attractive for buy-to-let investors. Those looking to purchase holiday homes for eventual profitable resale also favour it and give an investor a tangible exit strategy to consider.
7) Low Entry Prices Make Investing in Albanian Property Affordable
Property in Albania is considered among the cheapest in all of Europe. As the country continues to develop its tourism industry, the prices are not anticipated to remain low for terribly long. Prices for off-plan properties are ranging between EUR 550 and 800 per square metre. One-to-two bedroom apartments off-plan are starting at around GBP 30,000 and under. These prices are incredibly competitive with other developing hotspots such as Morocco for example. Considering the Adriatic and Ionian coastal draws, the investment buy in is very attractive to those looking at holiday homes, property to let and even to investors hoping for big returns via resale at some point down the road.
8) Favourable Exchange Rate Makes Albanian Investment Very Attractive
The exchange rate between the British pound and the Albanian lek is incredibly favourable for Britons. With a single pound valued at nearly 176 lek, British money goes extremely far in Albania. When the favourable exchange rate is coupled with the low cost of living, low property prices and other attractive features of the Albanian buying landscape, it is clear why so many are focusing their attention on this eastern European country.
9) Favourable Tax Laws Make Buying Property in Albania Very Promising for Investors
Property investors are finding the taxation climate in Albania is very attractive. The country does not have a capital gains, VAT or transfer tax. When these factors are combined with the low buy in prices and anticipated tourism growth, Albania is a very hot prospect. Rental yields are expected to fall in around 6% and are predicted to grow considerably as the country gains more footing within the international community. Many are predicting that investors who get in early will reap the rewards of this country’s climb in prosperity.
10) Low Cost of Living and Friendly People Make Albania Welcoming for Holidaymakers and Investors
The cost of living in Albania is considered very low by British standards. Although even imported products are not expensive, the basics of living make this country very appealing to holidaymakers and expatriates on a budget. This is excellent news for investors who want to reap the rewards of buy-to-let properties. The friendly nature of the Albanian people also makes this country quite attractive for visitors and investors.
Albania’s beautiful beaches, growing holidaymaking industry and low property prices are making this country very attractive for buyers who want something a little different. The country is still in a growth phase, but it is showing a great deal of promise. As government reforms, economic stability and growth and tourism all change the face of Albania, many believe the property market here will more than pay off for investors in the short, medium and long-term.
