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Albania Property Market Outlook
By property | November 13, 2008
Albania Property Market outlook
The absence of financial markets and the irrelevance of financial variables in the workings of the real economy, especially the enterprise sector, have meant that the development of the real estate market has taken place within the wider evolution of the real and financial economy.
At present, real estate lending and real estate transactions in Albania are constrained by a number of factors, including a large concentration of unregistered properties, delays in enforcement of legal contracts, excessive permitting requirements, urban development activities stalled by an overly
layered administrative framework and by the length of resolution of the restitution issue. The lack of information on the magnitude of the registration problem, on actual household income and the market value of real estate transactions further exacerbate the issues.
It doesn’t sound too optimistic, but there are gradual improvements. To be more precise, the situation now looks better than some years ago. Albania is the fastest growing of all the South Eastern Countries that are set to join the EU by 2014. A vibrant real estate sector is crucial for economic development. The
specific weight of the construction in the Albanian economy increased to 47% in Q2 2006 from 43% in the Q2 of 2005! We can interoperate the number of direct flights from Europe (Lufthansa, British Airways, Austrian, Alitalia, Malev,…) as a testimony to the growing interest of western Europeans in Albania.
In Albania’s growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. Apart from the economic growth which is spurring growth in the real estate sector, the recognition of the need to invest heavily in infrastructure and of involving private participation therein, the recent legislation regarding creation of Special Economic Zones (Albania One Euro plan) and the growth of road concession contracts witness it.
Full report is available on demand. Please contact marin [at] balkimo [dot] com
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