Albania - next Europe Emerging hotspot?

[fresh1]

• Low Property Prices - 1 beds from 30,000 Euros, 22,000 Pounds, NZ$56,000
• Mortgages for Foreign Buyers up to 70% - 80% LTV
• The Final Frontier of the Adriatic Region
• Solid expected rental returns (6%+ est.) and strong local market
• Exceptional Capital Growth Forecasts
• Booming Economy and join ing NATO in April 2008 and aim to join the EU in 2014
• No restrictions for foreigners to buy
• Low Capital Gains Tax - 10% from Jan 2008
• Very Low Buying, Running and Selling Costs
• Currency is stable and strong
• Democratic and stable government
• Wage growth approx 10% pa
• The population is increasing – especially working age
• High levels of education - Literacy Rate is 93%
• Relaxed Lifestyle and Culture
• Growing consumerism and mortgages for locals
• Beautiful scenery: mountain ranges, idyllic beaches
• Booming tourism – expected 5.6% growth pa until 2017
• FDI investment for 2005 was US$273 million
• By 2009, the Ministry of Economy and Finance is forecasting exports to rise to US$1.2bn or 10% of GDP

What does everyone think?

Fiona, Independent Property Consultant, Fresh Property Co

[Mojo]

Well I think it sounds pretty good the way you've put it!! So where does one get more information?

By the way, why have you mentioned NZ$ in particular??

[xris]

• Low Property Prices - 1 beds from 30,000 Euros, 22,000 Pounds, NZ$56,000
• Mortgages for Foreign Buyers up to 70% - 80% LTV
• The Final Frontier of the Adriatic Region
• Solid expected rental returns (6%+ est.) and strong local market
• Exceptional Capital Growth Forecasts
• Booming Economy and join ing NATO in April 2008 and aim to join the EU in 2014
• No restrictions for foreigners to buy
• Low Capital Gains Tax - 10% from Jan 2008
• Very Low Buying, Running and Selling Costs
• Currency is stable and strong
• Democratic and stable government
• Wage growth approx 10% pa
• The population is increasing – especially working age
• High levels of education - Literacy Rate is 93%
• Relaxed Lifestyle and Culture
• Growing consumerism and mortgages for locals
• Beautiful scenery: mountain ranges, idyllic beaches
• Booming tourism – expected 5.6% growth pa until 2017
• FDI investment for 2005 was US$273 million
• By 2009, the Ministry of Economy and Finance is forecasting exports to rise to US$1.2bn or 10% of GDP

[FONT=Myriad Pro]What does everyone think?[/FONT]

Fiona, Independent Property Consultant, Fresh Property Co

Well Fiona, seeing as you ask, I would liken Albania to Westport or Eltham.

Either all that you predict will happen and Albania will indeed be the next hot spot, or it will continue languishing under the reputation as being Europe's only Third World country. At this point I am inclined to think the latter. In your list you omitted "closely neighbours an ethnic hot spot" and "potential war zone". If I wanted an idyllic Adriatic home I'd would go to Italy or Croatia. The price would be a minor consideration. Remember: cheap can be expensive. You don't languish on the European periphery for centuries and then suddenly storm in all guns blazing in only a few years.

xris

[SuperDad]

Well Fiona, seeing as you ask, I would liken Albania to Westport or Eltham.

Either all that you predict will happen and Albania will indeed be the next hot spot, or it will continue languishing under the reputation as being Europe's only Third World country. At this point I am inclined to think the latter. In your list you omitted "closely neighbours an ethnic hot spot" and "potential war zone". If I wanted an idyllic Adriatic home I'd would go to Italy or Croatia. The price would be a minor consideration. Remember: cheap can be expensive. You don't languish on the European periphery for centuries and then suddenly storm in all guns blazing in only a few years.

xris

Vintage xris.

Bottle it, and sell it.

Paul.

[fresh1]

Thank you for your feedback. I appreciate all points of view. But first I must ask, have you been to Albania?

If you had you would see a beautiful country and some of the most friendly people I have met. If you flew into Tirana you would see a brand new US$80 million international airport. And driving into the city you would see mass commercial construction building new offices, shopping centres and car dealerships along the road.

And visiting the coastal resorts of Durres, Vlora and Saranda, you will see breathtaking beaches and that from June - September the population of these towns double as Greeks, Italians, Kosovans, Serbians and Macedonians arrive for the summer. And now Stelios's "Easy Cruise" have added Saranda to their Greek Island cruise itinery for 2008.

I dont believe its really "all guns blazing". It's been a build up to this point, starting with commencing EU negotiations in 2003, huge demand for flights to start from London (originally planned for 2008, brought forward to 2006), and other European capitals, and now direct flights from New York as well.

If you have seen the December 07 edition of "Property Investor News", there were 2 articles which caught my attention:

• Demographics and Property Markets

The article explains about a report just released by United Nations and Eurostat detailing their forecasts for population movement in Southern Europe over the next few decades, and it indicated the following population changes:
- Bulgaria: -35%
- Ukraine: -28%
- Russia: -23%
- Bosnia: -20%
- Macedonia: -15%
- Croatia: -14%
- Portugal: -13%

And the only country in southern Europe with a rising population is ALBANIA: +14%.

• Foreign Direct Investment & its Affect on Property Prices

In the section on "Economy changing FDI" Peter Hemple states "it is not the amount of FDI but the FDI/GDP ratio that has the most dramatic effect on a country's economy." Based on this, there is a table detailing the Worldwide Top Ten Countries who are receiving high levels of economy changing FDI:

1. Macau
2. UAE
3. Bahrain
4. Libya
5. Bulgaria
6. Tunisia
7. Romania
8. Jordan
9. Albania
10. Lebanon

From this list, there are only 3 countries in Europe, and 2 of them have already joined the EU and experienced excellent property price growth. The other, Albania of course, is also there but still approx 6 years away from joining the EU……

For a holiday home, it's all about personal choice, and Italy and Croatia are certainly beautiful. But when it comes to investing, and comparing Albania more to Bulgaria or Romania, you cannot help but feel this little country can only move forward.

Fiona Bosticky, Independent Property Consultant, Fresh Property Co

[67910241]

Albania's a very pretty and unspoiled country, almost an image of what Medditerranean used to be before the civilisation arrived. Or at least, that's what my trip from Monenegro to Scodra a few years ago felt like. However, I'd have to investigate before deciding to buy anything there because I'm aware of the serious ongoing issue Albania has with corruption and gangs. Basically, I'd like to see a trend toward the biggest per capita exporter of organised crime in Europe becoming a bit more "under control". If they manage to get there, I'd love to invest, especially in larger land blocks. It might just be too cheap to last. As you said, it's a growing country and Albanians (as well as other Balkans) are great, fun, hospitable people whenever not in the traditional tribal warfare mode.

[cdwc]

Romania is starting to get a lot of interest as well of property investors.

[dwightcarter81]

As far as i understand from the article! Soon in Bulgaria we can buy cheap apartments!

[eri]

is the albanian mafia active in albania?

According to the Belgian police department specialized for Albanian organized crime, Albanian mafia clans dominate, leading in the illegal trade, including human trafficking and the sale of cocaine and heroin. The Albanian gangs are spread throughout Europe, police says, adding that Albanian brutality and networks of prostitution rings have made them notorious and dominant in human trafficking in the West. They are known to be very violent and stop at no cost.

http://en.wikipedia.org/wiki/Albanian_mafia

[mattinvestor]

I would definitely invest in Albania. Beside law property taxes, Albania is a very beautiful country and many tourists are attracted to it nowadays. Also, it is very cheap to travel there, so I think it is absolutely worth it investing in the Albanian property.

[muppet]

Is that law or low property taxes, Matt?

[ChrisEdwards]

Is that law or low property taxes, Matt?

I think he meant Low property taxes.

[revdev]

A friend of mine, a Captain on a super yacht, has had the boat chased twice (hijackers/pirates) passing through Albanian waters. Next time, the owner is going to provide an armed escort on board for that segment of the trip.
Sounds like a nice place!