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Buying a Property in Albania

Albania property: Investment potential

Albania has been the quietest of the states to emerge from the shadows of Communism to a free market economy and democracy, but despite some quite public setbacks, is well on the road to expanding its influence in Europe and the world, and this goes equally for the property market.

This part of Europe has seen some impressive growth over the past five years as the countries of the former Yugoslavia make their way to independence. Many of these are yet to have the full set of accoutrements that go with a developed market and economy, but that has failed to deter investors and speculators.

There is no reason why Albania cannot enjoy the fruits of opening up its property market, along with the development of the tourist trade, to have the same effect. This in turn will allow the infrastructure and the facilities available to the population as well as visitors to grow and develop.

In theory, the growth in both the economy and the property market was to continue to some degree until the proposed candidature of Albania for EU entry in 2014. However, the global recession has slowed growth in all emerging economies as the foreign investment from richer nations dries up and even overseas property buyers retreat until the storm is over. Additionally, one note of caution is that nothing is signed or sealed on the issue of EU entry at present.

Health and education

The provision of primary health care for the Albanian population is one of the areas in which the government is aiming to improve rapidly. At present, just one percent of the national budget is spent on healthcare, and with 25 per cent of the population officially below the poverty line, and there is a real need for this to improve. That said, life expectancy in Albania stands at a healthy average of more than 77 years.

Until this situation with the healthcare provided by the state is improved significantly, it is wise to make sure you have personal health insurance for the time that you are in Albania.

Transport

Another unfortunate remnant of the Communist era is a transport system that is old, outdated and neglected. Trains, roads and buses are below-standard, but this situation is beginning to change. The international airport in Tirana has recently undergone a refurbishment, and the government is spending money on the construction of a new highway between the capital and Saranda. Government funding for new road-building schemes across the country is increasing.

And finally...

Albania is one of the truest ‘emerging’ markets in the world at present. The infrastructure and services somewhat lag behind what should be expected in a modern, western European country, but progress is being made. The potential for the new democracy, the new economy and the new hope among the population for Albania to sit happily alongside Greece, Montenegro and Croatia is there, and in years to come there is no reason why they should not be regarded as at the same level of development.

However, with emerging markets there are risks, and it would be unwise to go into buying property in Albania without being aware of these. Make sure you judge your attitude to risk carefully so that you are comfortable with the developing infrastructure, the fledgling free market economy and the relatively new government. So long as you are aware of the situation, and take appropriate advice along the way, Albania could be the last true emerging market in its region.

Clearly the global recession is having an effect on the pace of development of the economy and infrastructure of Albania. However, when the world emerges from the ravages of this situation, Albania could be one of the places that adapts quickly to the new world. As with any property investment overseas in the current climate buyer should be very careful, but Albania could be a market to watch in the future.

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More pages

Page 1: Why Buy Property in Albania?
Page 2: The property buying process
Page 3: Albania property: Investment potential

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