Mar
14
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.
Mar
12
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.
Mar
12
Albania – A country with huge property development potential
Filed Under Property Development | 3 Comments
Property developers have been searching the world for new markets. The credit crunch has limited the opportunity for developers to make money in many different ways. Difficulties gaining credit has limited buying power whilst the same problem has also cut the number of potential customers available for developed property. Coupled with many people having less money to spend anyway, with job losses becoming all to common in much of the Western World it is far from surprising to see people considering other markets to develop in.
So international markets have become the destination of choice, with developers studying statistics of many different countries trying to assess where will provide the best RoI (return on investment) for their time, money and efforts. And where is proving to be most popular?
Albania
That’s right, Albania. Most people aren’t even aware of just where Albania is (Northwest border of Greece in Europe) but it is fast becoming one of the worlds biggest property hot-spots. It has huge potential as a country for those who are looking to build or develop property for profit.
The country is one of the poorest in Europe, with a small but fast growing economy and exports limited to mostly textile based industries. But by looking a little deeper property developers are starting to see real benefits in investing in the area.
Property prices
Property prices in Albania never underwent the mass rise that most of the Western World did, and so it has also managed to stay free of most of the crash that the world is now going through. Rather than suffering the 2% month on month contraction of the property market that the EU is going through Albania is actually seeing modest growth in the property sector. Also unlike much of the EU all it’s new projects and developments are going ahead, with little to no cancellation.
It is this growth in property prices that is especially appealing. All over the Eastern European country prices are rising at steady rates, but it is in the countries capital of Tirane that property prices are performing best, with annual growth of 30% far from uncommon.
Foreign Investment
Another reason to believe that property prices in Albania are likely to continue to rise is the level of foreign investment that has started. Large foreign companies such as Hewlett-Packard and Citroen have set up offices in the country, whilst many international banks have started opening up offices in the region.
Economic Growth
The potential for Albania as a country is only just starting to be realized. The number of tourists coming into the country year on year is increasing exponentially, increasing the need for holiday homes and the amount of money being brought into the country.
The economy itself is starting to improve dramatically upon its poor history, with growth at 6% for the last few years running, outstripping much of Europe for growth. Such new money, foreign investment and growth is showing that Albania really is a country with huge property development potential.
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