Hi,
I've been looking into buying an off-plan property in the Albania and would just like other peoples thoughts on whether this could/would be a wise investment? Or if anyone on here has bought property in Albania already and their views on the process, agents used?

Also I would like to know peoples views on whether they would buy in the capital Tirana or buy in a sea resort?

Thanks.

Albania is a minefield with most property being illegally built and being in an earthquake zone......Its a major issue.

I went out and visited the only english speaking agency I could find (Balkimo dot com). The guy running it Mario, is a very credible ex Swiss banker. They have sold a couple of developments via Barrasford and Bird.

They have a development called Terranova - its about Euro 600 psm. I was tempted but the rental market seemed a bit hit and miss so although it was cheap.....but this is probably your safest bet.

In the end I invested in Bucharest.

The coast is cheap again- 500 euro psm but a lot of the developments are quite small. That said, the season is much longer and warmer than Bulgaria - the same as Southern Spain so I can see it being an all year resort one day ( say 5 - 7 years).

Hi Bullettooth. I bought in Albania 12 months ago and like everybody else who buys there, bought it as a long term investment. Albania is in its infancy to the foreign market and of course like Spain all those years ago and Bulagaria and Montenegro more recently, there will not be a shortage of complications. Since buying I have been selling in strength to the UK, Irish and US markets. I run a company called Albania Estate and helped Balkimo into the foreign market and have found it an successful education. There are more hurdles to overcome, just like there are in any emerging or even established market but we are getting there. We still insist on making sure that all due dilegence is down before properties are put on the market. There is absolutely no sense selling something that is illegal,no matter how glamorous it may look. If you buy something illegally, there is a chance it maybe destroyed over a period of time but there is a chance it will not and you may happily sell it on to a local in years. Your choice , but we do not want to get involved. Property is cheap in the capital and we playing the game sensibly and making sure prices are not hiked up by developers, for hiking sake. Albania lacks certain infrastructure but is coming along nicely and for a city that is thriving on urbanisation Tirana is where it is happening. The international banks will give you finance through certain developments which is far earlier than Bulgaria and Romania had it. If the big banks are there , then someone must have thought it was good. I would suggest buying on the coast , only where the location is spot on. ie front line , now you have the choice. In 2 years obviously there will not be the choice, although I cannot see it ever being a Sunny Beach scenario. Rental is not the reason for coming into the City or coast at this stage. If you are down to your last euro then dont buy in Albania. Of course you may get rent but Albania is for capital growth right now. Just in a reply to Bulbasaurus - We sold Terranova and Soleal through Balkimo and am happy to report that sold more than any other agency. Marin is the gentlemans name not Mario and if you are going to worry about earthquakes then don't buy in Montenegro, Thailand and beware of serious terrorist threats in US, UK , Turkey, Spain, Egypt, Morocco , India, Pakistan, Italy ........ If you would like to discuss the market, the present and the future in Albania then please drop me a line or pm me.

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Stingo the reason I mentioned earthquakes was in the context of the amount of illegal property and the likely use of substandard materials, shallow foundations etc. Another reason to buy property with the right papers and building regs. A lot of property was destroyed in Bucharest in '77 for example which now makes new build very safe in that City due to very strict building code that followed.

The only investments worth buying into are new build and land. Both of these we sell at Albania Estate. New build qualities are now way ahead of what used to be built and are being constructed , in a majority of cases, by high end local and international companies. I understand your point and clients need to be re assured by agents and developers like myself. No properties will be marketed by us ,unless the paperwork is clean. If unsure on purchase, investors should ask for copy of existing title deeds and ask for further checking by independant lawyers in the country if necessary. This advice would be given when purchasing in other countries. If you needed names of these lawyers again, feel free to ask.

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Firstly - can I concur with Stingo. Albania is for the more intrepid investor who is looking for medium to long term capital growth. Ignore the agents that predict prices will treble in 3 years!
There is a reasonable rental market in certain coastal areas from the Italian market - but this should not be relied upon.
Infastructures are improving all the time with new roads etc. The EU is ploughing billions into the area to bring the region up to speed.
So what about the basic facts - increasing tourism, increasing investment, great entry price level, lovely coastline and climate. When you are buying at approx £20k - expect a few issues. After all, property investment is all about balancing risk and reward!!
We will be releasing some pre-offplan units on the coast very soon at low prices - to pre register email me at jeffm@iqpropertyinvest or visit Specialists in the sale of discounted off-plan worldwide properties for investment purposes » IQ Property Investments Limited » Welcome

Hi,

I'll be travelling to Albania in January and would love to research the property market.

I was wondering what your thoughts are on the subject of buying a home, not an investment property? Basically, since I cannot afford to buy a house in my home town of Spain or in London, where we live now, but I still want to have a home somewhere, that I can call my own, I decided I would buy something in Tirana, as I loved it there and my husband is Albanian.

However, my budget is quite low (£20,000max) and I am not so keen on a new development but rather a compfy old flat in the town centre.

I have found it hard to find contact details of estate agents (only balkimo or albania-estates) or property lawyers. Would someone be able to forward some info for me?

Any advice/help would be greatly appreciated.

Many thanks!

Buca

Hi Buca

At Albania Estates we are concerned about the structure of old properties in Tirana as well as the assurances of title. With new developments we can be sure of the quality and title and wish to only promote these plus land to the foreign market. For older resale properties in Tirana you are best to speak to Balkimo who have an establised resale market. I understand you have their details and they would be happy to meet you in Jan.
We feel that the capital growth (20%) will be at its very best on new constructions with established developers in Tirana. New property will work better for rental due to the finish and size of the properties now being built with young couples and students in mind.

stingo

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Hi -I am new to this site but find the commentary and advice excellent so thanks to all.

I am interested in buying in Albania for medium term investment - something that interests me most is purchase of land [probably coastal] for future resale for development purposes. Is there much opportunity within this area ? Would there be any issue with land title ?

Also I am intending to go to Tirana in late January to review sites around albania - are there any reputable agents which I could contact who could facilitate a review of the area ?

Thanks,
Sean

Hi Sean, I am trying to find time to visit Tirana at the end of January as well! I will be looking for off plan in Tirana and just getting a feeling of the place. I agree with the other posts regarding land banking, it would need to be done with extreme care!! I have had many years experience in the Bulgarian market and expect land purchase in Albania to be similar to Bulgaria ten years ago. As I understand it foreign investors cannot own land in Albania, so this would necessitate a company formation and possibly a Albanian partner?

I have done some research on FDI etc, if you want a copy IM me and I will send you what I have

Regards
Martin