At this current time, there are no restrictions when it comes to buying property in Albania. Anyone from the UK or from the United States can simply go there, find a property and purchase it. However, this doesn’t mean that you shouldn’t be careful when you are searching for a property.  There are a variety of issues when it comes to buying property in Albania and if you don’t make sure to do everything that you really need to do, you will end up losing a lot of money.

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.

All investors and tourists know all about the European hotspots when it comes to real estate and tourism. There is substantial evidence with respect to the potential there is for investment within countries such as Italy, Spain, Greece and so on. The underlying problem however is the extremely high cost that will coincide with any investment in these markets. Yes there is potential to make money but you are going to need substantial start up capital. The key to investment success is finding untapped markets that are set and primed for an economic boom. This is exactly why so many investors are rushing to get involved in the Albanian property market. Albania consists of lengthy stretches of pristine beach front and its beauty rivals that of any other major European market.

The country itself is quickly becoming known as the last, and possibly best, market on the continent that has not yet been exploited to its full potential. The heart of the country, its capital of Tirana, is in the midst of a massive economic boom as buildings, tourist attractions, hotels and a major airport are all being constructed. All major investors are predicted extreme economic growth in the area due to an increase in tourism. More and more people are starting to take notice of this uncultivated jewel along the coasts of the Adriatic Sea.

In hindsight, Albania offers all the advantages that can be found in other major tourist hotspots within Europe but at a fraction of the price. This is a statistic that will not be present for long. Over the past few years, property prices within the country have risen on an average of about 20%, and up to 200% in some of the more popular areas. There are also predictions by many seasoned investors that the price will continue to rise up to 30% annually after Albania finally becomes part of the European Union.

As an expat or foreign investor, there are no restrictions that are applied to your investment opportunities within Albania. On top of this, purchase prices are extremely low in comparison to other areas, while rental costs are significantly higher. As the market for tourist continues to rise, so will your investment in Albanian property.

The time is now to get involved is this relatively unknown investment hotspot. At the moment property prices are some of the cheapest that anyone can find in all of Europe. However, as tourism, construction and development continue to grow at a rapid pace these prices will not be in existence for long. Albania has a wealth of potential resources and untouched capital that are ripe for the picking. Investment is all about timing, and if you want to take advantage of this unexploited market, you are going to have to act fast.

The property investment market has got very difficult in recent times. The credit crunch induced recession has meant that house prices are falling rather than rising and bargains and suitable investments are hard to spot. It is also a rather unfortunate fact that the same is happening almost all over the Western world, with the usual house hot-spots no longer the sure return on investment they once were.

Thankfully there are areas available to investors that are still proving to be very good investments. It is simply a case of hunting around and understanding trends and potential. It is also a matter of shopping further afield.

International property investment

Because most local property investments are now far higher risk looking for property investments internationally could well prove to be a far safer bet. Unfortunately the usual investment opportunities in Spain, Portugal and the like are proving to be suffering the same lack of returns or safety that local markets are.

So many investors are now having to think a tad more creatively and consider other opportunities, and the name that keeps cropping up time and time again in researching best countries to offer a return on investment for property is actually Albania.

Albania as a property investment target

Many property investors are unaware of the potential that Albania has. As one of Europe’s poorest economies it has long been ignored by property developers and investors as a country worthy of note. So unlike much of the world Albania has never gone through what could be termed as a ‘property boom’, its prices have only grown very steadily, making its returns not worthy of note for developers looking for big money.

However because it has not gone through that boom it has also not suffered the crash in value and confidence that has effected most of the world. Unlike EU countries, which have seen a drop of 2% month on month in the property markets, Albania’s marketplace is still growing and completing new property projects.

Foreign investment fueling growth

Albania has seen significant foreign investment in the last 5 years or so, with Hewlett-Packard, Peugeot and Citroen all opening up presences in the region of the capital city Tirane. This has led to more money being pumped into the area, further fueling the Albanian economies growth, which stands at 6% growth year on year for the past few years.

This extra investment, as well as a very significant rise in tourist numbers, has seen the property prices rise rather than fall – with some areas of Tirane improving their house prices 30% or more each year.

With such economic rise comes the attention of banks. Larger foreign banks have started developing presences within Albania, which has further caused property price increases as more and more people become used to, and have access to, credit lending, especially mortgages.

The trends within the country are for further growth of property prices, economy and tourist numbers. Certainly a very viable property investment country.

Many property investors and developers are suffering under the effects of the credit crunch.  With mortgages getting harder to find both buying and selling property has been difficult, as well as getting the credit needed for buying the tools, supplies and labor needed to develop the property.

With that in mind developers have started looking further afield to see where they can make money stretch further, and where the buying market is more buoyant and less risky than it is in many of the major nations.  Unfortunately the credit crunch has caused recession and economic uncertainty in most of the world.

However there are some markets that are still showing good growth, and it these small gems that developers are seeking to work in.

The growth of the Albanian property market

One such gem comes in the surprising shape of Albania.  At first this may come as a surprise, Albania is not a country on many peoples lips, in fact few know where it is or what it can provide.  But further examination shows it is a perfect country for property investors and developers, with a lot going for it and the likelihood of further property price growth very high indeed.

It should be noted that Albania has one of the weakest economies in Europe, which is why for so many years it has been ignored for international development and investment.  This has turned out to be of benefit to the Albanian property market.  Whilst other markets saw house prices boom and then bust with an influx of investors, developers and speculators Albania was able to make consistent and solid growth.

Whilst before this growth was not of a level to interest investors recent crashes in the worldwide property market, coupled with large foreign investment in the Albanian economy has made Albania a far more lucrative proposition.

Reasons for the growth

So Albania is now seeing property growth far in advance of its European counterparts whilst still remaining very cheap (and so allowing for new developers to get a foothold), indeed it’s land and property price comes in at 75% cheaper than its Easter European neighbors such as Greece.  With such a small cost of starting up many people are prepared to take a risk at the Albanian economy.

Furthermore there has been significant investment in Albania by multinational corporations.  Hewlett-Packard and Citroen have both opened up centers near to the Capital city of Tirana, and where big business goes the banks follow, with many Western banks getting footholds in the country.

Because of the influx of wealth and banks more people are starting to be able to get mortgages, something that was virtually unheard of in Albania until recently.  With more and more people now getting access to the kind of credit they need to buy a house there are far more potential customers for property – and it is really starting to show.  For the last two years house prices in Tirana have increased 30% year on year, quite a return on investment.

So whilst the property markets of much of the world suffers there are gems to be found, Albania is certainly proof enough of that.