Many people are wondering where to start with property development.  Developing properties for both fun and profit is a dream shared by many people around the world, and it has been a very lucrative business.  However the credit crunch has led to a huge slump in the property market, making property development very risky and a business model fraught with danger.

So not surprisingly many people have started looking for other markets that are not suffering such a slump in prices and buying numbers.  Internationally a lot of the world are suffering through the same problems brought on by the credit crunch slowed marketplace, but there are still some markets that are proving to be profitable to invest in.

Albania and property investment

Albania is one such country.  Unlike many countries in recent years it has not gone through what one might consider a ‘property boom’.  So high prices have always risen in a slow but consistent manner.  Until now that has made it an unattractive proposition for anyone looking for returns on their investment.

However because the country never experienced anything like as big a rise in property prices as the rest of the world it has also not seen the crash they have experienced either.  Indeed unlike the EU’s property market, which is shrinking by 2% month on month at the moment, Albania is experiencing modest but steady growth.

Great for first time property developers

Such consistent growth is perfect for anyone who is considering getting into property development as it means that the market is a far smaller risk than that of many other property markets.  With positive growth and less development over the years there is still real need for property in Albania.

The economy of Albania is also a great boost for any potential international developers.  Albania is one of the poorest countries in Europe and as such costs are going to be down considerably on what it would cost to develop elsewhere.  Materials and labor are all at far more affordable prices than many developed nations.

The property price is also of benefit to first time property developers. With prices at 75% less than even Albania’s Eastern European neighbors, and therefore much less again than countries such as Spain and Portugal, traditional property strongholds, it costs dramatically less to get your foot on the property ladder than it otherwise would.

The buyers within Albania are also far more numerous.  Because there has been no hike or crash of prices buyers within Albania are not as wary of house buying as many populations are.  With house prices still at affordable levels for locals there is a considerable number of potential buyers available.

Foreign investors are really starting to wake up to the value of property in Albania, with many property investment funds announcing that they will be putting money into the area, which gives additional buyers for the canny property developer to sell to.

Albania is proving that property development is, even in the credit crunch, a viable business model.  You just have to look further afield than you might have thought.

This entry was posted on Monday, March 16th, 2009 at 5:47 pm and is filed under Property Development. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.