Albania Estate - Albania Property

2/1/10. 2010 is going to be a strong year yet again for telecommunications , services and property in Albania. As this article states, there are internationally marketed off plan developments available, allowing you to buy luxury property very cheaply. The fact that the properties are built to target overseas buyers and Albanians means that today’s investors will be able to sell to Albanian’s when they decide to cash-in their investment.

Albania’s government has an excellent fiscal track record over the last decade. Between 2002 and 2006 they successfully brought a quarter of the nation’s poorest out of poverty. Albania then became a middle-income country according to the World Bank’s classification. This allowed Albania to borrow money from international banks instead of relying on handouts. Courtesy of www.overseas-property-world.com

Between 2002 and 2006 the economy was growing strongly. When this continued into 2007 and 2008, the government took advantage of its new status and took out a series of massive loans from international financial institutions. These included a massive loan from the European Bank for Reconstruction and Development to build a new terminal at Albania’s largest port in Duress, as well as renovating the existing terminals.

The huge investment in a super-highway linking the port of Durres to inland Kosovo will boost the economy massively for years to come, by making it the quickest route for Kosovo exports, and also increasing tourism from land-locked Kosovo to the Albanian beaches. The latter also could be a holiday rentals market for foreign investors in coastal areas like Saranda.

Again, economic growth in Albania will push up property prices: economic growth means increasing employment, increasing wages and increased affluence. This leads to increasing living costs, including the cost of building materials and labour.

This automatically increases property prices at the rate of inflation. But because property in Albania is so cheap, the increasing numbers of foreigners buying for investment and/or accommodation as businesses move into Albania could push prices up much faster. This will also boost the residential rental market and push rental yields up from the current 4% to 6% in the next 5 years.