Albania – A property developers paradise
It’s not too often that you will hear the words Albania and paradise in the same sentence, but it is a fact that currently Albania is one of the worlds newest property development hot-spots and it really is proving a paradise for buyers, investors and developers of property alike.
Whilst the current world property market has slumped the property market in Albania is proving remarkably strong. The EU has seen its new property development market contract by almost 2% month on month recently and these figures are repeated almost throughout the world, with new projects and developments being canceled.
In Albania however the story is different. The property market continues to expand and new projects are not being pulled. Whilst growth has slowed the market itself is far more robust than other international options.
Why consider Albania for property development?
Obviously such growth has attracted the attention of many international property developers. Many property investment funds have announced that they are investing in the strong Albanian market, including some of the biggest names in the world.
What is important to consider is the price. Albania is one of Europe’s poorest nations, and as such the price of property is very low. This makes entry onto the property ladder and into the property development industry far easier than in economically stronger nations. With prices so low there are always interested international buyers willing to come in and try make a profit.
Because of it’s poor economy there has been no ‘property boom’ which many other countries have experienced. The inflation of house prices never really happened in Albania, meaning that property was kept at a sensible level. Because of this there has also been very little by way of a crash now that the world economy is struggling.
As the house prices are at such a reasonable level they are still attractive to both local people and foreign investors, meaning that there are a wide range of people to try sell any property to. These cheap properties have meant that the market has risen at a very real, and very sustainable, growth rate.
Albania and foreign investment
So whereas Albania was previously an unattractive prospect in the property development world because it was not expanding at the same rate as other countries, now that the property world is seeing a fall in prices and production Albania’s sensible growth has meant it has suddenly become very much more attractive.
Because of this lack of foreign investment previously the number of projects has not saturated the Albanians need for new properties, and neither has it suffered from dramatic pull outs of foreign investment when the property market started struggling.
When considered alone with the weak economy of Albania meaning that prices are 75% cheaper than in other Eastern European countries, but experiencing growth rather than contraction, it is very easy to see why so many people are starting to get excited about investing in the Albanian property market.
