Why invest in Albania?
Since no official house price figures exist, market players and speculators alike make different estimates of how much house prices have risen and will likely rise in the future.
Property prices have risen 200% in the most sought-after places, with an overall increase of 20% annually, according to Obelisk, a leading European real estate firm.
Prices are expected to go up by 10 to 15% annually, “perhaps even rising to 30 percent when Albania enters the EU,” says David Stanley Redfern, Ltd., an overseas property specialist.
Property prices surged 107% between 2002 and 2006, and by more than 300% from 1996 to 2006, according to a study by INF 93, a Tirana-based real estate agency.
Some reports say that prices of city-centre apartments have quadrupled over the past six years.
There are no restrictions on the purchase of private residential property by foreigners, except for agricultural land.
Property prices in Albania are among the lowest in Europe, although real estate agent’s estimates vary. Vacant land can be bought for as low as €40 – €150. Prices of newly built apartments in Tirana are around €700 to €1,000 per sq. m.. Luxurious units in the city centre are
priced at around €1,000 – 1,500 per sq. m.
Rental yields estimates are quite low, at around 5% to 7% per annum. Property buyers are counting more on capital appreciation than on rental income for a return on their investment.