Residential property prices in Albania have increased 10.3% year on year to the end of the third quarter as a number of economic pointers and figures indicate a positive outlook for next year.
The figures from Albania’s Central Bank also shows that the country’s Rental Price Index is also up with a 1.1% increase year on year.
According to the budget bill passed by the Albanian parliament recently, Albania is predicted to see its budget deficit drop to 3% of GDP next year with economic growth reaching highs of around 4.3% despite the debt crisis currently affecting many countries. The International Monetary Fund (IMF) is predicting strong economic growth of 3.5% in Albania for 2012.
Travel guide Frommer’s has declared the Albanian Riviera as the Top Value Destination for 2012 according to its editors, authors, and experts from around the world. There was a 200% increase in tourists visiting the country between January and August this year compared to 2008.
The first 38 kilometre stretch of motorway linking Albania’s border directly to Kosovo’s capital Pristina was delivered ahead of schedule and within budget a few weeks ago. It was recently announced that a new €53 million loan from the EBRD has been agreed for the construction of two bypass roads in the south of the Albania.
‘With growth in the Balkan region predicted to be around four times higher than the 0.5% growth the European Union is expected to post next year, those wishing to invest in property will be making a sensible choice if they look in Albania’s direction,’ said Ravin Maharajah, partner of Lalzit Bay Resort & Spa, a five star luxury residential development located on Albania’s Adriatic coastline.
‘Indeed, demand for property in Albania this year has been on the up and in light of 2012 predictions will no doubt continue as property hunters search for alternative options. For example, the international market is starting to wake up to Albania’s potential as a beach holiday destination which has generated excellent demand,’ he explained.
Maharajah believes that Albania has a good set of attributes to attract an increasing number of visitors and thus boost the rental potential of properties.
‘Albania’s coastline is its greatest asset with 295km of Adriatic coastline that runs from Montenegro down to Greece. It has gleaming white beaches, a rich history and is a land of legends and ancient civilizations. It is a nation where travellers will enjoy authentic traditions and cuisines, as well as a friendly welcome,’ he said.