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Albania is emerging from the shadows - is now the right time to invest in Albanian Property?

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Albania has many things going for it from a property investment perspective. The country is showing many of the same signs that Poland, Romania and Bulgaria did before it. The question is - can Albania expect the same levels of property price growth and should YOU invest there?

Just some of the questions you should be asking are:

Is the market growing?
Will there be significant property price growth?
Is there a mortgage market?
Is it competitive?
Is it worth investing there?
What problems will I face?

The Albania Property Market Profile - researched and written by our team of experienced property market analysts and now updated with all the latest information and data - answers those questions and more...

If you're considering investing in Albania or are just interested in the market then this Property Market Profile is the ideal resource.

What's inside?

The Albania Property Market Profile provides you with comprehensive analysis and explanation, covering a wide range of related subjects, including:

• The politics of the country
• Albania, NATO and the EU
• Economic fundamentals
• Currency matters
• The abour market
• FDI - the past, present and future
• FDI - Government incentives
• Demographics & Population
• The housing market - supply & demand
• Property price analysis
• Finance - local & foreign
• Market review - Tirana, Durres & the Coast
• How to buy - requirements, taxes and pitfalls

Basically, EVERYTHING you need to know to make a fully informed investment decision on Albania.

Why should I consider Albania?

Albania, the most overcrowded country in Europe, has long remained isolated and unstable. But since 2005, when a new Government was elected, the country has strived hard to be recognised by the international community. And the signs are now there that people are starting to sit up and take notice. Already invited to join NATO and with a target for EU membership in 2014, Albania should now be on the "possible" list of all property investors.

From the Executive Summary:

ALBANIA HAS ENORMOUS POTENTIAL FOR GROWTH

"In our opinion, Albania is still a market in a speculative phase of development, meaning that not all criteria we like to see for sustained growth are present yet, and investing now could be perceived as potentially relatively high risk. However, the rewards for those investors willing to be in this market early could be very attractive indeed.

"Mortgage lending – the main driver of the property market is developing rapidly in Albania, stimulated by the presence of foreign banks and strong competition among lenders.

"Terms and conditions for locals are fairly attractive for a market at this early stage of development (up to 95% LTV over 20–25 years with interest rates of 7–8%), the number of people who can afford a mortgage is still relatively small and is not yet able to drive the property market.

"Affordability for locals and a widespread willingness to take on debt are the key components that we believe will emerge shortly in Albania and drive long-term growth in the property market."

Designed to provide a balanced view of the investment potential of the country, the Albania Property Market Profile is also clear where the risks lie:

INVESTING NOW - POSSIBLY HIGHER RISK BUT HIGH REWARD

"Albania’s risk is created predominately by its still uncertain political situation, issues with clear title deeds and illegal housing. At this stage of development though, of course, the rewards can also be very high.

"We can clearly identify three types of investment in Albania: off-plan apartments in large cities (Tirana or Durrës), apartments on the coast and buying land.

"Buying off-plan in cities now means you’ll get in cheap (€600–800/sqm) with prospects of excellent capital growth (up to 30% per year), but an investor will have to accept there is an undeveloped rental market and outside Tirana, a lack of a secure exit strategy. At this stage Tirana seems to be the safest bet."

What about the in-depth analysis?

The Albania Property Market Profile delves as deeply as possible into all the factors affecting the property market. All the available statistics relating to economics, finance and Foreign Direct Investment have been gathered, analysed and conclusions drawn. Sources used include:

• Various Albanian Government Ministries
• Heritage Foundation
• Albania's National Statistical Institute
• Bank of Albania
• International Monetary Fund
• Transparency International
• AlbInvest
• Balkimo
• Albanian News Agency

And, of course, Property Secrets' own research and analysis.

The Profile is packed with graphical illustrations of the analysis used, giving you a clear understanding of how conclusions are reached.

You cannot find a more balanced, comprehensive review of the Albanian property market.

Where - and how - do I invest?

If, after reading the Albania Property Market Profile, you think Albania is a market that you should be in, you're going to need to know where and how. And having read the Profile, you'll know.

Tirana - the most advanced property market in Albania

"Tirana is going to be a totally different type of property market – driven by local buyers, unmet demand and improving mortgage finance, a secure exit strategy and capital growth.

"In Albania, we can list only two cities in which the economies are strong enough to stimulate development of their property markets in the near future – Tirana and Durrës.

"Tirana as the capital city and the leading city in the country is the prime destination of FDI investors and inward migration.

"Its population is estimated at 750,000 inhabitants. Here the property market is already active, driven by the emerging middle-class and young professionals, but also, to a limited extent, by foreign buyers.

"Tirana has been increasingly promoted to the international community of property investors, mainly due to the very low prices. Our Albanian expert, Paul Wild, believes that most such buyers are speculators, counting on high profits in the short term, while investors with a longer-term strategy, depending on less risky, sustainable capital growth, are still in the minority.

"Low prices are a big selling point for investors in Albania – off-plan apartments start from around €50,000, which means you need a deposit of only €15,000 to invest (you can get 70% mortgage).

"And the price growth is solid – around 15% per year, but new builds up to 30% in 2007 (subject to location).

"The best places to buy in Tirana are the centre, east and west suburbs.

"The rental market is still relatively undeveloped with most of the tenants being foreign workers like embassy staff or students. Few locals rent, which is characteristic of a market at this stage of development and also, of course, of one in which there is such a huge proportion of home owners.

"Monthly rent varies from €6 to €10 per square metre for new builds in the centre and €3 to €5 in other locations. Gross yields don’t exceed 7%, but 5–6% yield is typical."

This is THE information you need to ensure you make the right decisions, avoid costly mistakes and maximise your investment potential.

Click here to download it now