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Albania hots up - 5 November 2007

Albania is the new place to go for the early bird property investor, according to a leading agent.

The low cost of living, no capital gains, no VAT, no transfer tax, and prices that are the cheapest in Europe, claim Obelisk International. Within the last few years Albania’s stability and growing tourism sector has opened up the country to property development, which is attracting early property investors.

After abandoning Communism in 1992, Albania has made enormous strides for both democratic and monetary development, revealing itself as a country that is not only ripe for tourism growth, but that also offers very affordable entry-level property investment.

The country presents tremendous scope for development of the tourism industry as tourism growth is estimated at 5.6 per cent per year. With Adriatic and Ionian coastlines, and only a few miles east of Italy, Albania enjoys a Mediterranean café culture feel, with unspoiled National Parks, beaches, mountains and rivers.

Rental yields of at least six per cent should be realised, and once Albania’s bid to join NATO in 2008 and the European Union in 2014 has been accepted, the potential for rental yields to increase is high.

The financial benefits of property investment in Albania is a large plus point for the country’s growth; there are currently no restrictions on foreigners to purchase residential property, no capital gains tax, as well as low buying, running and selling costs.

The currency and democratic government is stable and strong, and the country has an annual wage growth of around ten per cent. Albania already has mortgage facilities in place for foreign property investors, which is unlike many other Eastern European countries who took some time in building a foreign investor product base.

Local agents are currently reporting prices of between €550 and €800 per square meter, and as such, overseas Albanians are sending funds home to snap up these bargains pre-construction, creating a valuable source of revenue for the country.

 

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