Hungary TriGranit to build “resort town” in Albania

TIRANA, March 14 – Hungary-based real estate giant, TriGranit, has announced plans to build a resort town in the northwest part of Albania, which will function as a tourist leisure complex.
In this multimillion euro project, TriGranit plans call on creating a facility the size of a small town with hotels, restaurants, villas, roads, hospitals, a variety of service units and public utilities on the shore of the Adriatic Sea, the local news portal index.hu reported last week.
There is virtually no hindrance to the planned project, since Albania does not restrict non-residents’ real estate purchases, does not levy tax on capital gains, real estate acquisitions are exempt from value-added tax and there are also a number of tax allowances available.
Albania, with a population of over 3.5 million, is becoming even more appealing for investors as its economic growth continues along with its general stability.
On the other hand, its political instability and the lack of infrastructure, including frequent power outages, are not for the faint-hearted.
Nevertheless, Kosova’s recently announced independence and Albania’s expected membership in NATO could enhance political stabilization and create economic pillars for investors to build upon.
Albania’s tourism industry, thanks to the country’s favorable geography, including sandy white Mediterranean beaches, rocky mountains, plains and lakes, not to mention an average of around 300 sunny days a year – has been growing by about ten percent annually. According to index.hu’s information, the tourism sector generated EUR 1.5 billion revenues in 2007, accounting for 13.8 percent of the country’s gross domestic product.
The tourism industry may be further boosted by the fact that the weak USD is causing American tourists to seek destinations outside the euro zone and Albania is still considered extremely cheap for tourists.