TIRANA, May 4- Spring remains the most intense work season for real estate agencies, especially those focused on coastal areas. Agency manager to Saranda Invest Property Eron Cumani said that real estate prices in Saranda have recently increased considerably. Properties on sale in the city have prices as high as 3,000 euros per square meter.
According to major agencies in the country, coastal price growth has come from several factors. First of they claim that there is an increase in demand for purchase or investment, although they notice a slump of demand from foreigners due to the political situation. Secondly, due to the positive expectations of the owners, there has been an increase in seafront property prices. Thirdly, infrastructure improvements made in certain areas such as Durres and Vlora, have also affected the prices.
Klajdi Memajdini who is sales manager to Devinf, of one of the oldest agencies in the country, said that 2019 was accompanied by a rise in demand for apartments on the coast. A demand for villas was also noticed, however in a fewer number than for apartments. Individuals who decide to buy a property on the coast are more interested in investing in properties located in residential complexes due to better property management.
“Demands have been more numerous for residential complexes. Complexes in the Qerret and Gjiri Lalzit areas are the favorites of the customers who reside in Tirana, because of the distance that these two destinations have with the capital,” said Memajdini.
Even though Memajdini said that spring awaked the interest of foreigners to buy a property on the Albanian coast, Xheni Jahja from Tirana Real Estate said there has been a demand reduction from foreigners in relation to the previous year, due to the political crisis, which has also echoed in foreign media.
“This has influenced some of them, who could be potential buyers, to push decision-making for another time,” explains engineer Jahja.
Director of Century 21 Jonian Antoni said the Albanian coast is attractive to buyers, mostly foreigners, influenced by cheap property prices compared to neighboring countries such as Montenegro, Croatia or Greece. He said that the average price of a coastal apartments is 55,000 euros, while villas cost about 90,000 euros. And Antoni noticed that these are affordable prices from foreign buyers. He also added that although the cheap prices that Albania provides have attracted the interest of foreign buyers, only 1/8 of the interested people will actually buy because of the poor security provided by our country.
Durres is the most economic option
According to the Devinf agency from the properties it has in its portfolio, the prices for residential complexes in Qerret and Gjiri Lalzit range from 900 euros per square meter to 1300. Properties that are located outside the complexes, on the coast such as in Durrà«s, are cheaper starting and from 600 or 700 euros per square meter on the first line of the coast.
Referring to the properties in its agency portfolio, Xheni Jahja explains that objects constructed in the Durres area on the street remain on sale due to limited access to the sea shore, as there is a shortage of overpasses in the beach area, although construction can be of high quality and competitive prices. In the Golem area the apartments near the rails are quite inexpensive and can be purchased at 300 euros per square meter. While in the South, the price ranges from 800 up to 1200 euros per square meter. It also depends on the quality of construction, location and services that the area offers.
Jonian Antoni from Century 21 explained that Albania has a large variation in property prices. He argues that this is related to the typology of the purchase. For example landowned villas which have a surrounding land, cost higher than the apartments, and their price varies also in regard to the area where the property is located. Saranda is one of the most expensive tourist cities for apartments, followed by Vlora and Durres. Antoni said that Gjiri Lalzit dominates in villa prices, followed by some new areas in the Albanian Riviera. Areas with the most affordable prices are northern areas, where buyers are mainly from the Kosovo and Macedonia and are looking for cheap prices. He mentioned the coasts of Shengjin, Lezha, or even Velipoja, where the prices are at the level of 600-650 euro per square meter.
Antoni mentioned that touristic villages are generally well-built, have a high security and cleanliness. Thus they are highly preferred especially from foreign buyers. However, these quality services make touristic villages even more expensive and thus affordable by a smaller number of buyers.
Infrastructure effects
Xheni Jahja from Tirana Real Estate said that the growing demand in the city of Durres is due to the improvement of infrastructure in the beach area. The construction of the promenade in that area has increased the value of properties in Durres. Ilir Konomi from the Albania Property Group, claimed that the infrastructure in the Shkembi i Kavajes area is finally being adjusted, where there is also a price increase. However, he considers Gjiri Lalzit as a better investment option.
Konomi however showed some concerns about the cementation of some tourist areas, such as the Qerret area in Kavaja. He said that Qerret is being over-constructed with accommodation units, from which this cementation might possibly penalize tourism. Jonian Antoni from Century 21, said that improving infrastructure is also accompanied by increased demand and consequently, it also leads to price increases. Even in Vlora, with the completion of works and infrastructure, prices have risen.
Rising prices in Saranda
According to real estate agencies, family buyers choose Center Albania areas to be closer to the airport and the big cities. Meanwhile, individuals investing in the coastline also need support infrastructure, such as healthcare services or proximity to large cities. Coastal cities with sandy beaches are preferred by families with small children. Buyers of a slightly older age (who have older children) head to areas of natural beauty and more quality beaches, such as the Albanian Riviera area and especially the city of Saranda.
In some of the new buildings which located on the first line of the coast, prices range from 2000 to 3000 euros per square meter. According to Eron Cumani from Saranda Invest Property, although this type of housing is limited in number and has an improved quality, they still don’t justify the pricing even after the tax increases and costs for the builders. He said that apartments would cost up to 70 thousand euros a few years ago, whereas now bookings for properties range from 100 to 300 thousand euros. Cumani said that price increases have come mainly due to demand, however he expresses reservations for owners’ abuse for somewhat salty prices.
Properties that come at relatively high prices tend to attract above-average income clients. Cumani remains skeptical of how the city will respond to potential buyers, saying that Saranda can become another Monte Carlo in a few years, as far as customers can be withdrawn. He added that the city has problems with infrastructure and it is not responding to services, stressing that the buyers’ category has also high demands apart from the budget,and thus they could be disappointed if infrastructure is not upgraded. A part of properties bought from foreigners are put on sale, which indicates their dissatisfaction with the city. Saranda still suffers from the consequences of poor construction.
Cumani said that the seaside real estate market is supported by three groups of buyers, which make up the demand for real estate on the seashore. The first group are those who buy a property for investment reasons, as the return of capital at a later time is higher. This category buys a property to resell it later at a higher price, but in the meantime they use the property, leasing it during tourist seasons, where return on investment is immediate. The second group of buyers are persons of 50-55 years of age and older, who precede the pension and make a purchase to secure a place to pass the old age. And the third group is those who buy a property for personal use, though they are smaller in number.
Political situation effects on foreigners
Polish, Ukrainians, Swedish and Italians are some of the foreign nationalities which have targeted properties along the Albanian seashore. Even though the demand of foreigners for coastal apartments have been almost the same from the previous year, real estate agents claim that the political instability in the country is affecting purchasing contracts.
Agents said that foreigners prefer properties which have closer distance with the airport and that provide good road and services infrastructure. A rising tendency in demand has been noticed by Polish citizens, especially those who have been in emigration and have sufficient budget. The second highest demanding group has been Swedish citizens. The area with an increasing demand has been the city of Vlora.
Apart from the political situation affecting purchases, concerning for the real estate agents has also been the response of property owners in increasing prices. For example as Saranda is attracting above-average income Polish citizens, the prices start at 1300 euros per square meter at the line of the sea. Agents say that the prices in Sarana have increased by at least 10 percent.
There has been noticed an increase in demand for properties in Durres due to infrastructure improvements, however foreigners prefer mainly in complexes and resort villages at the Gjiri Lalzit area which have construction and services standards. In tourist villages, prices range from 800 to 900 euros per square meter for apartments, while villas 1000 to 1100 euros per square meter.
Companies that are developing coastal projects estimate that the demand to buy remains high. There is a kind of diversification of buyers, who are not typically diaspora Albanians. Of course, they continue to remain an important part of the buyers, but nowadays Nordic, Israelis, Russians and Ukrainians are seeking to buy properties for the first time in Albania. All this is related to the tendency that tourism has had. There have been some disappointed buyers that have wished to return to Albania simply as tourists, while there have also been tourists who want to have their own property upon returning for vacations, or that wish to return as permanent residents.
Ledia Telhai from Balfin Real Estate confirmed that in at least two important projects of the company, buyers are Albanians and foreigners from different countries of Europe, but not only. Concretely on “Green Coast” interest has been expressed by buyers from Switzerland, Austria, Italy, but also from farther countries such as Israel, Russia, the United States or England. However, 60 percent of buyers are Albanian citizens so far. In the “Vala Mar Residences” in Hamallaj, about 75 percent of the buyers are Albanian citizens, and the rest are from the diaspora, Kosovo nationals, and Nordic countries.
The same trend is confirmed by the company Concord Investment, which is implementing a series of projects along the coast, starting with “San Pietro Resort,” “Palasa Resort,” and “Kep Merli” more recently. Companies underline that the group of buyers purchasing villas on the coast varies greatly, among whom descried are the elderly, who also have the necessary financial means to invest in such a wealth. There are few cases when foreign pensioners have chosen to live in Albania from a low cost of living in relation to their own country and it seems that a small group will also be residents of these touristic villages.
