Albania Attracts Interest As Property Market

TIRANA, June 23 – Albania seems to have turned into an investment location due to its entrance in the property market.
It is increasingly becoming more popular as an investment location and the number of foreign companies selling property in the country is on the rise. International media and those focused on the property market have increasingly written about this country.
The property investment opportunities vary in this market when referring to the coast and the rural areas.
Albania represents three types of investment opportunity: cities (currently dominated by Tirana), resorts and land.
Tirana is the most advanced market in Albania and the trendsetter.
As a general rule, cities are markets far more likely to be driven by domestic buyers. Solid capital growth, secure exit strategies and developing rental markets are what one looks for in most city markets.
Some markets are far more suitable for a quick profit strategy, taking advantage of fast capital growth, than a longer term one that depends more on a stronger rental market.
They say that at this moment only two cities in Albania have strong economic fundamentals able to trigger solid property price growth: Tirana and Durres.
Some of the factors needed to make it attractive are only just developing.
Local affordability has not quite reached a critical mass to really see this market driven by sustained and widespread middle class demand, which accounts for the lack of an assured exit strategy.
Mortgage lending has not taken off yet and the idea of borrowing to buy property is still new to Albanians, who are used to purchasing property with cash.
It will take at least 18 months to two years before we will see enough Albanians using mortgages to create a significant driver of the property market, according to experts.
But it will come, and when it does the market will take off rapidly, as has been the experience in so many other CEE markets.
Albanian tourism has great potential to grow in the near future and become a serious competitor to Croatia or Montenegro.
The Albanian coastline is unspoiled with 350 days of sunshine every year – encouraging sun-seekers and holiday home hunters.
The coast has just started to emerge as an investment destination. But large-scale growth is possible only if the currently woeful infrastructure is improved. Albanian resorts are still small and undeveloped.