Rising property prices and a positive economic outlook in Albania are helping to encourage more overseas buyers, especially those concerned by the current Eurozone debt crisis, it is claimed.
According to Albania’s Central Bank, economic growth in the second quarter of 2011 will be around 3.4% with a forecast of lower inflation for the remainder of the year.
Over the past decade, Albania’s economy has enjoyed real Gross Domestic Product growth and despite the economic downturn in 2008, the Balkan nation was one of only two countries in Europe that not only recorded economic growth of 0.4% in the first quarter of 2009 but also 6% growth from 2001 to 2010, one of the strongest performances to have taken place throughout Europe.
In addition to economic growth, The House Price Index in Albania has once again increased by 1.6% during the second quarter of 2011 with The Bank of Albania stating that from the end of 2009 and throughout 2010, prices remained virtually unchanged indicating stability in the market which will come as positive news for those wishing to invest in property in Albania.
According to Albania’s Central Bank, increases in the house price index, which saw an overall average increase of 13.6% for the entire year back in 2009, are a reflection of the undervaluation of Albania’s currency, the Albanian Lek, and increased prices within the Albanian property market whilst rising demand, improved credit access and an increase in construction permits have also thought to have pushed up property prices.
Ravin Maharajah, partner of Lalzit Bay Resort & Spa, a five star luxury residential development located on Albania’s Adriatic coastline, the outlook makes buying property more attractive.
‘There are numerous upward forces being applied to land and property prices in Albania including increasing infrastructure investment and vast differences in property prices between close neighbors such as Croatia,’ he said.
He pointed out that a recent poll by Arrowtrak of businesses in the region discovered that around 37% were considering investing into the Balkans. ‘Considering economic growth and stability within Albania and with more overseas investment, Albania will see an increase in expats moving to the area which will in turn boost property prices,’ he explained.
‘For example Lalzit Bay Resort is attracting the attention of the growing middle classes across the Balkans, with at least 70% of units released having already been sold. We have even had to release additional units to meet high demand,’ he added.