There are some parts of Albania however in which buying property is still too risky and getting a return on your investment might never happen. However, there are a few places which seem to be the most popular and offer the best opportunities for foreign investors.

Most of the popular places to buy property in Albania sit on the Adriatic coastline and if you have been there, we are sure you will agree that it is a stunning part of the country, and indeed the world. The capital of Albania still remains the most popular place to buy property for foreign investors and although it isn’t exactly right on the coast, it is still near. There are new developments springing up in the city faster than you can imagine. The capital of Albania is named Tirana and if you are looking to buy property here you will more than likely be looking to purchase a city apartment. These are being built at an alarming rate and there are some good deals to be had. The city also has eight of the top universities in the entire country, making it a great educational place.

Another popular place to buy in the country is in Durrës. This is the former capital of the country and it has a coastline on the beautiful Adriatic Sea. If you are looking to buy a property in this area then the best route for investment is to buy a beach front property. As the tourist industry grows in the country so will the value of these properties.

It may be hard to believe that Albania is so poor, as its location really predicts the opposite. The country is located in a beautiful part of Europe with a fantastic position that has a coastline of the Adriatic Sea. As well as this, the southern part of the country is only a very short ferry ride from the popular Greek island of Corfu. This is an island that has a booming tourist industry and has many resorts and hotels in which tourists from all over the world stay in.

However, the main reason for Albania being so low on tourism is more than likely due to its history. The country has a history in which there was an extreme dictatorship and communism and it is said that these are the main reasons for foreign buyers being put off the country. Of course, like many countries that are aiming to join the European Union, things are changing, although it seems they aren’t changing as past as people might like.

Having said this, the economy is developing in Albania and there are now certain places of the country in which buying property could certainly see a good return on an initial investment. A lot of people still believe that it is too early to consider investing in the country, however, places like the capital city Tirana are slowly becoming a great place to invest in. There are hundreds of new resorts planned in the year of 2010 and some of them have even begun being built already.

Although the country is becoming much more stable, you should still be extremely careful when investing in Albania, but if you are careful, there is certainly a lot of money to be made if you buy the right property in the right place.

One of the biggest issues when buying property in Albania is that you need to make sure that the title deeds of the property that you are going to buy are checked over by an independent lawyer. This is because in Albania, around 15% of the property there is not legitimate and the property does not belong to the true owners. If you buy a property and the title deeds did not state the true owners name before you bought the property, then the property can be taken off you and you will lose all of the money you paid for the property. Currently, this is especially important in places such as Tirana and the coastal towns as this is where most of the property that is not legit is located.

Another thing to be careful of when buying property in the country is that you need to check that the building you are looking to buy is legal. There is a history in Albania of building being built without permission and are therefore illegal. Buying one of these properties could see you lose a lot of money so make sure to check with the state that the property you wish to buy is all above board.

One other thing to be careful of in Albania is the fact that the country has a high corruption rate. Although this is being combated by the new government that came into power in 2004, it is still a big issue in the country and something to be careful of.

The buying procedure in general involves signing numerous contracts – first a reservation contract, an undertaking contract, an introductory contract and the concrete sale-purchase contract.

Once signing the reservation contract, the property is reserved for approximately 4 weeks by the buyer. This time is then used by the buyer (through the lawyer) to carry out careful checks on the property.

Although there is no obligation to have a lawyer for a property purchase in Albania, it is always suggested to use one. During the communist era (before 1990) a lot of property was confiscated by the government. However since the 1990s roughly 85% of the confiscated properties have been returned to their original owners. The outstanding 15%, situated primarily in Tirana and coastal areas are still in the process of being resolved.

To prevent a familiar problem when buying property in Albania it is highly recommended that the buyer’s lawyer must certify that the property in question is really in full ownership of the present seller and is free from any liens.

The quality of construction is also an issue at times. This is due to the fact that some developers decide to take shortcuts when building.
Once all the required documents are obtained, the ‘undertaking contract’ is signed by the buyer and seller. This indicates their agreement to buy and to sell the property in that order. And usually would include information of the timescales, payment conditions, and price conditions of the acquisition. The undertaking contract is signed in a Notary office; this is where a public official is appointed by the government to notarize legal documents.

It is usually common practice that once the introductory contract is signed a 10% down payment is paid for second hand properties. Off-plan developments usually require a bit more as down payment, this could be anywhere between 20%-40%.

To get to the final sale-purchase contract the property needs to have been paid for fully and then the contract can be signed in front of a Notary. To finalise the sale and for the titles deed to be transferred to the new owner the final contract is then registered at the Office of the Immoveable Property Registration.