Why consider real estate in Albania for investment and vacation?

Real estate market in Albania

In this article we will discuss the peculiarities of the real estate market in Albania. Why should you think about buying an apartment in this beautiful state? The reasons can be varied: from investment to vacation or even the possibility of moving permanently.

History of Albania

Not long ago, Albania, a small country in the southwest of the Balkan Peninsula, was overshadowed by more developed neighbors such as Montenegro, Greece and Italy, which are washed by the waters of the sea. For a long time, the Albanian people suffered the consequences of the brutal regime of dictator Enver Hoxha, who was in power from 1941 to 1985 and suppressed any dissent.

Isolation of the country

In the early 70s, Hoxha, who held Marxist-Leninist views, managed to spoil ties with former allies, including Yugoslavia, the USSR and the DPRK. As a result, Albania found itself isolated, surrounded by countries that were considered hostile. The remnants of this dark time can be seen in cities such as Tirana, Durres and Gjirokastra, where numerous bunkers remain, which have become symbols of the harsh living conditions. Every inhabitant was obliged to build such fortifications to protect himself from a non-existent threat.

Daily life in socialist Albania

In addition, some aspects of daily life in socialist Albania are worth noting. For example, in order to visit a relative, it was necessary to notify the local authorities of one's intention in advance, as well as to report on one's return. Undoubtedly, under the leadership of the Communist Party at the beginning of the regime, the country showed certain successes in the field of economy, industrialization and agriculture.

• Advances in educationThe illiteracy rate has decreased significantly.
• Women's rights: women were given equal rights with men.

Nevertheless, by the end of this period, most Albanians continued to live in poverty, and the country lagged significantly behind even other socialist states.

Transition to democracy

The transition to democracy did not bring instant change for the better. In the 90s, Albania became a symbol of criminality, poverty and destruction. However, this period is a thing of the past! Skipperia, as locals often call their country, has gradually turned into a comfortable and safe place filled with friendly people ready to support foreigners.

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With the increasing flow of tourists and immigrants arriving in the country, negative stereotypes about the country are beginning to disappear unequivocally. Experienced experts in tourism are convinced that Albania has significant potential as a tourist destination in Europe.

Investments in Albania

The hospitality industry here is actively developing and can reach levels comparable to Greek standards. All conditions are in place for investment in various areas, especially in the real estate market. Affordable housing prices and attractive conditions for foreign investment open up a wide range of opportunities for those looking for promising investments.

• Albania has been able to attract many investors in recent years.
• The steady growth of the housing market inspires confidence in its future.

Conclusion

Thus, if you are in search of an ideal vacation, investment or relocation destination, Albania should not be overlooked. Given its historical destiny and well-developed tourist infrastructure, you can expect interest in this country to only increase. Unique natural landscapes and rich cultural heritage make Albania an attractive choice for those who want to own real estate in this wonderful region.

The interest of British tourists

Among international travelers, UK residents are particularly interested in Albania, as evidenced by the significant number of flights from this country - more than eight per day.

But what exactly attracts this country to foreign tourists, in addition to the friendliness of the locals, which we talked about earlier? First of all, it is worth noting the picturesque natural vistas, which surprise with their beauty.

Natural resources and climate

Despite its relatively small area, Albania has outstanding climatic and natural conditions due to the fact that it is washed by both the Ionian and Adriatic Seas.

The landscapes here are varied and the following features can be highlighted:

• Majestic mountains,
• Green Valleys,
• Rivers and lakes.

Some of the best known bodies of water include.Lake Shkoderwhich is shared with Montenegro, as well as lakes Ohrid and Prespa, on the border with Northern Macedonia and Greece, which have become popular vacation destinations.

Climate and seismic activity

The country's climate is a combination of Mediterranean and subtropical types, which attracts many tourists. Summer temperatures can reach 24-28 °C, while winters are mild, with temperatures rarely falling below 4 °C.

It should also be noted that this region is prone to seismic events, which is a common feature of many Balkan countries.

The capital and its environs

Tirana is the capital of Albania, located only 40 kilometers from the sea. To the south is the small town of Elbasan, and to the north, near the border with Montenegro, you can see Lake Shkoder.

Popular resorts

Among the famous resorts worth mentioning are:

• Vlora- is located on the southern coast, at the point where the waters of the Ionian and Adriatic Seas meet.
• Saranda- is opposite the Greek island of Corfu.
• Durres- is notable for its proximity to Tirana.

Of particular note isGyrocastra- is a marvelous museum city protected by UNESCO. It preserves an old fortress built during the Ottoman Empire, whose rule in Albania lasted more than four centuries and ended in 1912.

Religious composition of the population

The population of Albania is predominantly Islamic, the result of Islamization under Ottoman rule. Approximately 31-32% of the local population is Christian.

However, it is worth noting that the level of religiosity among citizens is not that high. During the reign of Enver Hoxha, religion was under strict control and anyone who had a religion was persecuted.

After the change of political regime in the country there is a gradual revival of spiritual life. Many tourists and emigrants note a high degree of tolerance for different faiths.

As the Albanians themselves state, their only common faith is thefaith in Albania.

Transportation and airports

Albania has one international airport, named in honor ofMother Teresathe famous humanist. Although she was born in Macedonia, her roots came from Albania.

The airport is located just 17 kilometers from Tirana, in the small town of Rinas.

Lack of direct flights

Currently, there are no direct flights between Russia and Albania, which puts travelers to the task of organizing their routes with connections. One of the convenient options becomes the way through Istanbul. In addition, it is possible to arrive in Montenegro and further travel by bus to Albania. This country is actively working to strengthen its positions on the world political arena and since 2014 has the status of a candidate for accession to the European Union.

Difficulties of learning a language

The Albanian language is a rather complex object of study. It belongs to the Indo-European language family, but at the same time it differs considerably from other languages of this group. Nevertheless, many young people in Albania speak English, which makes it easier to communicate with foreigners.

Culinary traditions

Albanian cuisine consists mainly of meat dishes. However, the variety of dishes is enriched with fish, seafood, as well as local fruits and vegetables, which can be found both in markets and restaurants.

Growth of the real estate market

The residential real estate market in Albania has become much more active over the past few years. Experts note that the interest in buying housing in the capital and tourist areas is declared more and more clearly. Local media report a construction boom, for example:

• The first quarter of 2022 saw a record number of building permits issued - more than 800,000 square meters of residential space.
• There is no fresh data at the moment, but it can be seen that the trend continues.

Investment and demand for real estate

Among the factors contributing to the growing interest in real estate is the active participation of foreign investors. As of September 2022, the volume of non-resident investments in Albanian real estate has increased by 43%. The main categories of foreign investors are:

• Citizens of European Union countries such as the Czech Republic, Poland, Germany, Italy, Sweden and Finland.
• Interest from Russians, Ukrainians and Belarusians.

Foreign buyers tend to look for homes in resort areas.

City of Vlora

The town of Vlora, known for its attractiveness and popularity among tourists, is famous for the fact that the waters of the Adriatic and Ionian Seas merge here. Vlora has:

• A cozy waterfront;
• Lots of parks;
• Cafes, restaurants and stores.

Nevertheless, Vlora cannot be considered exclusively a tourist destination, as 70% of the local budget revenues are generated by tourism. There is also a well-developed infrastructure for permanent residence, including clinics, educational institutions, kindergartens and universities.

Transport communication

Ferries to Brindisi in Italy depart from the newly renovated seaport of Vlora. The city attracts attention with its picturesque beaches, however:

• The length of the coastal zone is only 2-3 kilometers.
• The distance to the airport in Tirana is 150 kilometers.

This may create some inconvenience for travelers, but it's worth noting that a new airport is under construction near the resort.

Real estate prices

Housing prices in Vlora have increased significantly in the last one or two years. The cost per square meter in new buildings under construction is about 1200-1300 euros. The surge of interest in real estate is explained not only by the growing number of tourists, but also by the desire of investors to provide themselves with housing in this picturesque country.

Real estate in Albania

In Albania, choosing the prestigious Lungomare district, you will have to spend about 1,500 euros per square meter for a one-bedroom apartment on the first or second line in Vlore. Minimum prices for such apartments start from 80,000 euros.

Saranda: Nature and Attractions

Saranda, located on the southern edge of the country, opposite Corfu in Greece, attracts tourists with its stunningly clean, white-sand beaches.

Edy Rama: The Artist and the Mayor

Edi Rama is an artist by vocation and three-time mayor of the capital of Albania, a position he has held since the beginning of the twenty-first century. Under his leadership, a major initiative called “Return to Identity” was implemented in Tirana. As part of this program, illegal buildings were demolished, new parks and gardens were laid out, formerly abandoned squares were transformed, streets were renovated, new infrastructure facilities were built, and building facades were decorated with bright graffiti.

This approach to greening and beautifying the city through contemporary art has become particularly relevant, and Tirana has literally become filled with street art. Since 2013, he has also been the Prime Minister of Albania, further increasing his influence on processes related to the development of urban infrastructure.

Demand for real estate in Tirana

There is a steady increase in demand for residential real estate in Tirana. If in the recent past the price per square meter on the secondary market was approx.1200 eurosand now it's risen to2500 euros. In new high-rise buildings the cost of square meters starts from1800 euros.

For example, a one-bedroom apartment in the city center now costs no less than120,000 euros. Despite the significant amount of new construction, secondary real estate still leads the market.

Experts advise that when buying an apartment from a landlady to pay attention to:

• age of the building (preferably before10 years);
• condition of the apartment (especially mold problems, which is typical for seaside areas);
• location (effect of low season on activity in some locations);

Having a property manager is an important point, as this person is responsible for the order in the apartment building and solves issues related to the operation of the apartment.

Real estate in Durrës and Vlora

In addition to Tirana, real estate is also actively offered in the cities of Durres and Vlora. However, there are not many really attractive options; the best offers are bought up quite quickly. Small apartments with an area of up to50 square metersare in the highest demand, although they are quite rare in Albania. Moreover, most of the apartments start with an area from70 square meters.

On the coast can find private home but their amount is extremely limited. Most of the individual buildings are concentrated not so far from Tirana, and the average price for them is about200,000 euros.

Classification of districts and taxes

At the moment in Albania there is no clear division into expensive and more budgetary neighborhoods. Residential development includes different types of properties that can be located next to each other, although they have different price categories and construction periods.

It should be noted that when buying real estate in the country, it is worth considering the tax in the15%of the value of the home being purchased, while there is currently no property tax on ownership.

Financial aspects

Developers also offer installment payment options until the end of construction, but foreign buyers cannot count on mortgage lending. If you are thinking about buying an apartment as an investment, for vacation or permanent residence, the classic choice of many is “dacha by the sea”. Owning a property on the coast is a great opportunity for frequent vacations and enjoyment of picturesque views.

Buying a home in Albania

The question of buying a home in Albania is becoming increasingly important, especially against the background of affordable real estate prices, which are noticeably lower than in most popular European resorts. Among other things, an attractive point is the possibility of generating additional income through renting.

Real estate rentals

A study of market prices demonstrates that studio rentals can range from25 to 50 eurosdepending on its location and condition. One-room apartments can be rented for the amount from30 to 60 eurosWhile prices for two-bedroom options start from35 eurosand can reach90 eurosper day. Even in the off-season, from October to May, the demand for housing remains stable and does not decrease. In long-term rentals, studios can bring in180-200 eurosper month, one-room apartments -200-350 eurosand the two-bedroom units250-400 euros.

Investment attractiveness

Import interest in the Albanian real estate market is growing and more and more foreign investors are considering investing, expecting a rise in housing prices. The market continues to develop due to increasing demand from both local citizens and foreign buyers.

• The Albanian government is actively working on the development of many regions, leading to their improvement and increasing the profitability of real estate and business investments.
• The Republic is considering active development of transport infrastructure - new airports are being built, railway routes are being modernized.
• A bypass road from the airport to Saranda is being created, significantly reducing travel time.

Transport infrastructure

Thanks to these steps, the travel time from the air port to Saranda will be reduced from4.5 to 2.5 hours.

Moving to Albania

Every year the number of foreigners choosing Albania for permanent residence is increasing. It is important to choose areas where the infrastructure is developed and the quality of life is at a high level all year round, not only in summer. The procedure for obtaining residency status in Albania is quite simple.

Obtaining a residence permit

For example, the purchase of residential or commercial real estate opens the door to obtaining a residence permit. The size of the value of the apartment or house is not crucial, the main thing is sufficient space for one or more people to live in, especially if you plan to move with your family.

According to the legislation “On Foreign Nationals”, it is sufficient to own at least half of the property, which allows two owners to jointly apply for one dwelling. However, it must be taken into account that the actual residence in the apartment must be at leastsix monthsduring the year.

Documents for obtaining a residence permit

In addition to providing proof of ownership, you will also need to have:

• Valid health insurance
• The amount in300,000 Albanian leksin the bank account (which corresponds to approx.2600 euros)

It should be noted, however, that buying real estate is only one of the options for obtaining a residence permit. Albania offers various visa programs that target both highly skilled professionals and certain categories of workers, such as digital nomads, which creates ample opportunities for migration and work in the country.

Conclusion

As I wrap up my article on real estate in Albania, I want to share with you my thoughts on what this country is like today and what it has to offer those who are ready for new opportunities. As I mentioned, Albania, once in the shadow of its more famous neighbors, is now clearly developing its tourism and investment potential. It is the desire to overcome stereotypes and discover a distinctive culture and magnificent landscapes that is attracting more and more foreigners.

Investment opportunities

Alternative real estate investments are becoming not only a way to get rich, but also a chance to become part of a dynamic society. As the infrastructure and quality of life here grows, the number of people willing to invest in the Albanian real estate market is increasing. The interest is not only in apartments and houses, but also in the unique opportunity to experience the true Albanian way of life - with its traditions, cuisine and, of course, hospitable residents.

What Albania attracts foreigners

We live in a world where everyone is looking for something special. Albania, with its mountain ranges, clean beaches and historical monuments, provides such a space. I truly believe that the coming years will be decisive for the country opening its doors to new ideas and innovations, where comfort and security will define the lives of residents and visitors.

Why you should consider Albania for investment:

• Rich in history and culture.
• Unique nature with picturesque landscapes.
• Affordable real estate prices.
• Hospitable residents.
• Prospects for the development of the tourism industry.

Summarizing the results

So, if you are thinking about buying real estate in Albania for investment, vacation or even relocation purposes, you should pay attention to this destination. I am sure that this step will help you to discover many opportunities and experience unforgettable moments in the heart of the Balkans. To summarize, I would like to say that Albania is not just a geographical point on the map, but a country with a rich history, culture and undoubted prospects.