Fiona Bosticky’s Fresh Property Albania Blog - Albania Properties, Albania Real Estate Market, Albania Estate, Albania Travel, Albania Tourism

Posts Tagged ‘investors’

First off the mark was Praktiker, opening a few months earlier.  But now another DIY superstore has opened, on the Tirana-Durres Highway at the turnoff to the International Airport.

94% Albanian-owned “Megatek” has launched their first Albanian store, due to the huge demand from local Albanians, who are starting to embrace home DIY and renovation.

This will be a major boost for Albanian homeowners, who currently have strong limitations to access mortgage financing in the country, due to the impact of the global economic crisis.  Easier access to stores like these and the products they offer, means they can improve their existing residence, rather than upgrade to a new one.

Please see the current images of the new superstore:

For more images please visit us on Flickr

Due to the request of a client, who was looking for excellent offplan/ new build buy-to-let apartments in Tirana, the capital of Albania, my research has led me to some amazing conclusions - the main one being - PRICES ARE RISING!

In the centre, near the train station, prices are surprisingly around EUR1,200/sqm to EUR1,300/sqm.  Last year apartments were selling around EUR900/sqm.  That’s a 30% increase.

Also, other apartments along the River Lana, which were EUR700/sqm last year, are now EUR900 - EUREUR950/sqm this year.  That’s a 28% increase.

Eventually I found some great apartments in Rruga Don Bosko, which is also a booming part near the centre.  Just 12 - 24 months ago, prices were EUR600 - EUR700/sqm, and now prices are only EUR800/sqm, and still rising!  There are actually only 3 x one bed apartments remaining:

• 56sqm x 800 = EUR44,800
• 56sqm x 800 = EUR44,800
• 63sqm x 800 = EUR50,400

In a short time, these prices will be EUR900/sqm and then EUR1,000/sqm, as prices continue to rise.  If you would like to buy one, please contact us immediately for the payment terms.

The development will be constructed in 4 residential/commercial blocks, with the final block, currently being the only block available, as the other blocks have sold out.  Completion is expected for end 2010.

Rental Yields in and near central Tirana currently range from 5% to 8% for long term rental, and up to 15% for holiday rental.

The recommended hold period for investors in Albania is medium term (5 to 10 years) for maximum gain.

Prices in Tirana will continue to rise, as they are still the cheapest capital city real estate prices in Europe.  With central properties around EUR900 - EUR1,200, this would make Tirana rank around 73rd place for most expensive cities in the world, just after Sofia (Bulgaria) and Budapest (Hungary) - using the Global Property Guide Rankings.

NOW is definitely the time to buy… and invest!  Please contact us for more info.

To view the images on Flickr, please click here.

The area and village of Dhermi in Albania is breath-taking: amazing lush mountains, falling away to white beaches, and crystal clear water.  Situated along the Albanian Riviera, and now accessible by a tarmac highway both from Vlora and from Saranda, the potential for Dhermi is really beginning.  And tough new construction laws for “touristic zones” in Albania, should ensure Dhermi’s future is beautiful and bright, and in direct competition with similar hotspots in Montenegro.

Fresh Property Albania are excited to launch the first ever luxury resort and apartments near Dhermi/ Drymades.  Located in Kallam, this luxury development will comprise a first class hotel and only 46 residential apartments.  All buildings in the resort will be only 2 stories high (ground, first, second), in line with the touristic zone regulations.

Prices from EUR1,050 to EUR1,450/sqm. Apartments Available Include:

5 x 2 storey villas (98.73sqm to 171.81sqm):

• ground floor 2 bedroom apartments
• first and second floor duplex apartments

2 x 2 storey residential apartment buildings (56.78sqm - 81.5sqm):

• ground floor 2 bedroom apartments
• first floor 1 bedroom and 2 bedroom apartments
• second floor studio and 2 bedroom apartments

A swimming pool will be at the centre of this resort and space for free onsite parking for residents will be available. This resort is 700 meters in a straight line from the Drymades beach, or 1.3km via the road to the beach.  Currently the old road from the highway to Drymades beach is under construction with funding from the World Bank, and is due to be completed by summer 2010.

Features:

• 5 Star Hotel
• Bar/Restaurant
• Fitness Centre
• Outdoor/Indoor Swimming Pool
• 24 hour Security services
• Shuttle Bus to beach

Apartment Services:

• Cable TV
• Internet
• Cleaning services,
• Garden services
• Maintenance including pool services

Construction has already commenced on site, with the first villa-apartments expected to be ready for summer 2010, and the whole site and resort to be open by summer 2011.

This is a rare opportunity for property investors to get into the magical Albanian Riviera property market in a luxurious project.

To view the site photos taken in November 2009, please click here.

To view the site video taken in November 2009, please click here.

For more information and availability please feel free to contact Fresh Property Albania.

Summer was strangely longer than usual in Saranda this year.  The masses of tourists left at the end of August, but the hotels and tours operators were strangely busy, booked up until the end of October.  So even though the students had returned to college, a lot retained jobs to keep up with the tourism demand.

While the dust is settling, the locals are getting their first chance to reflect.  This year, 2009, saw the busiest summer season ever, as 1,000s of holidaymakers poured into Saranda from Macedonia, Kosovo, Italy, Greece and a few additional European countries like Poland, Holland and Norway.

Accommodation was in very short supply during August, as many local residents opened up their homes for the first time to offer beds so that many would not have to sleep on the beach (although some really did have to).

Saranda town had some noticeable changes this year, including a new tourist office next to the beach, new funky orange street lights, and the main road into Saranda was a permanent construction site as workers began widening and improving the road and installing a new footpath.

Prices for hotels and renting apartments were also higher than last year, a big shock to some tourists expecting a cheap and empty Albanian seaside resort.

Regarding real estate, nobody can deny that Saranda is a mass construction site of residential apartment blocks.  Locals and foreigners are curious to see the effects on Saranda of the 1,000s of apartments currently under construction.  Sadly most of the projects are built to 90% or more of their plot footprint, leaving little space for gardens, trees and parking.  Some developers have even extended balconies over busy roads, which seems highly dangerous and must be illegal.

I wonder if the Saranda council will start clamping down on developers who are building these concrete monsters, ruining some vistas in Saranda, and converting this lovely seaside resort town into a concrete city.

Despite the ugly construction, prices are going up.  Holidaymakers realised this year that buying an apartment in Saranda may be a lot cheaper than renting each year, and since prices are rising, it may be a good financial investment as well.  Prices in Saranda range from EUR500 – EUR1,300 per sqm, but for a sea view the prices start closer to EUR650 per sqm.

So why is Saranda booming?

1. Roads

Newly completed roads have started to open up access.  And since most visitors to Albania still arrive by car, this is having a huge affect.  Access via the coastal road from Tirana is now under 6 hours.  And a new highway currently under construction from the border near Gomenitsa in Greece, will change the access path from the south away from Yannina (Ioannina).  This road which is due to be completed in 2012, but will offer access shortly, will cut travel time to approx 1.5 hours from the Greek border.  This will also provide a faster route to Saranda for Italians who want to bring their car across on the ferry to Gomenitsa, eliminating the need to go via Vlora.

2. Tourism

Saranda’s touristic port is receiving more and more cruise liners each year including Easy Cruise, Cruise West - Spirit of Oceanus, Holland America Line – Westerdam, Louis Cruise Lines - Louis Majesty, and Regent Seven Seas Cruises - Seven Seas Mariner.  Bus Tour companies are mass-converging on Saranda, bringing tourists from Greece, Macedonia and Kosovo.  And demand will continue to rise.  They are drawn to Saranda as more positive press reaches international holidaymakers about the amazing nearby mountains, beaches, and sites:

• Butrinti
• Lekursi Castle
• Blue Eye
• Beaches (Ksamil, Borsh, etc)

3. Saranda International Airport

It has been many years since the plans for a Saranda Airport have emerged.

Saranda Airport Impression

However in 2005, the Albanian government granted a 20 year exclusive contract for international flights

to the German-American consortium owning Tirana International Airport.  This created a major problem since an airport in Saranda only offering national flights would not generate much income for its investors, and hence has not gone ahead.
However, demand is so strong, the government are considering breaking the contract so that the airport can be built.  Watch this space….

4. Cheap property and real estate (but expensive land)

Compared to other seaside destinations on the Ionian or Adriatic sea, Saranda has very cheap real estate for the moment.  Sea view apartments can still be found from EUR650 per sqm and if prices double in the next few years, Saranda will still be the cheapest for property prices in the region.  However land prices are already very high.  Land with building permission 100m from the sea might still be found for EUR250 per sqm.  The best land to buy at the moment is on the 6th Road in Saranda where small sea view land plots may still be around EUR30,000.

5. Climate

Saranda enjoys a Mediterranean climate and warm sea waters, and averages 290 sunny days a year.  Due to the excellent climate there is potential for a long summer season from early May to end of October.

Saranda is a rapidly changing town, drawing business and students away from Gjirokastra city in the mountains.  Improving infrastructure and increasing tourism demand will only continue to support this growth.  Heading into November, and shortly 2010, summer preparations for a possibly bigger season next year are already underway.

To view the range of Saranda photos, please click here.

Some of our Tirana development real estate projects are getting closer to completion, and here are the latest images of the developments under construction…

Dajti Hill Views

To view the full range of images, please click here to visit our Flickr set.

Classic Kashar Residences Tirana

To view the full range of images, please click here to visit our Flickr set.

Tirana Lake Residences

To view the full range of images, please click here to visit our Flickr set.

The first floorplans have been released for the size of the luxury villas which will be constructed in the Vlora Village Resort.

Here is the villa layout for the smallest villas (approx 150sqm, 2 storey) which will be constructed on the smallest 500sqm land plots, which are currently available for only EUR7,500!  The CHEAPEST beach resort land plots in Europe!

Ground Floor:

First Floor:

And for the larger plots, including very limited sea view plots, the villas are approx 200sqm (2 storey) on land plots of 1,000sqm.

Ground Floor:

First Floor:

Please note: Internal configuration of bedrooms and bathrooms is negotiable

In the current global crisis, property investors are viewing Albania as amazing value, especially in Vlora where a population and tourism boom is taking off.

This is a rare opportunity to get in first, and early, as land prices will surely triple by completion.

For more information on the Vlora Village Resort in Albania, please click here.

For more information, please send us your details below.

I recently had a client ask me “What do you think about Montenegro in comparison with Albania ?”

What a great question - comparing Montenegro with Albania. I’ve never really considered it in detail before, which is unusual since they are neighbours sharing a border and the same amazing coastline.

Montenegro and Albania are VERY different. Montenegro is aligned with Serbia, and Albania is aligned with Kosovo. This means the people, the culture and the politics are very different. Also Albania being a closed communist country until 1991, and then taking so long to recover has caused issues as well.

Montenegro has always been keen to attract foreigners and foreign investment, especially since they changed their currency to the Euro in 2002. The government was also keen to take advantage of Montenegro’s best opportunity - TOURISM.

Despite some issues with land and title deeds, foreign developers from Spain, France, Italy, UK and Ireland flocked to Montenegro to take advantage of the cheap land prices. This has resulted in developments springing up all along the coast.

Property prices since 2002 boomed in Montenegro, and now sea view apartments range from EUR2,200/sqm up to EUR5,500/sqm.

Albania is geographically double the size of Montenegro. Albania has taken a very long time to stabilize, due to a corrupt and incompetent government. Albania only started to move forward after the new Democratic Party came into office in 2005. They immediately began to reduce corruption and organized crime, and move forward to join the European Union (The stabilisation agreement was signed in 2006, and in April 2009 Albania submitted their formal application to become an EU Candidate member).

They then aggressively began reconstructing roads across the whole country, and they began encouraging foreign investment. This was evident once the beautiful new Tirana International Airport opened in 2007, after being taken over by a German-American investment company.

Land title deeds has also been a huge issue for Albania, and is still their major roadblock for joining the EU.

Albania has ENORMOUS tourism potential, just like Montenegro, with the beautiful coastline, mountains, lakes and forests. But also Albania has potential to become a commercial hub of the Balkans. Commercial construction, especially in Tirana, Durres and Vlora, is booming. I believe this is directly related to the construction of the Corridor 8, which will create an important and high traffic transportation flow across Albania.

Also Albania’s low tax taxes of 10% for companies, is attracting a lot of businesses to set up offices and branches.

Regarding real estate prices in Albania, land and property prices are currently the cheapest in Europe. Currently sea view apartments in Albania range from EUR550/sqm to EUR2,400/sqm, but as promotion increases for tourism in Albania, these will not stay low for long.

Also, one last interesting point: the population of Montenegro is going down, and the population of Albania is going up. For an investor, this is an important long term consideration.

New Albania Property Launch:

One of the largest, most ambitious tourist communities to date, the Vlora Village Resort will change the north coast of Vlora dramatically.  The resort will be constructed by one of the largest construction company groups in Albania, and all is expected to be completed by 2012/13.

The resort fronts the sandy beach, and offers amazing views of the Ionian Sea and Sazan Island.  The village will be 2km away from the new highway from Fier to Vlora, which will be completed in 2011.

The drive from Vlora city centre to the turnoff to the resort is currently 20 mins, but once the new highway is complete in 2011, this should only take 10 mins.  This will also offer fast access from Vlora port which currently receives regular passenger ferries from Italy.

The resort will be a village community unlike any previously seen in Albania.  The first section of the project will comprise 120 hectares, and the whole site once complete will cover 700 ha.  The developer will only construct up to 15% of the total size of the land, leaving the remaining 85% as natural forest.

The Features of the Vlora Village Resort include:

• A Number of Luxury Beachfront Hotels
• Small Land plots for Villas (now available)
• Luxury Apartment Buildings
• Extensive Parks and Gardens
• Aqua Water Park
• Swimming Pools: summer and winter
• Shopping Centre
• Commercial Centre
• Bars and Restaurants
• Sporting Club - Volleyball Courts, Football Field, Tennis Courts, Basketball Courts
• Children’s Playground
• On-site Parking
• Marina
• Petrol Station
• Gated Community with security guards

FIRST PHASE LAND PLOTS in Vlora Village Resort from EUR7,500

For the first phase release, there are a limited number of 500sqm, 700sqm and 1,000 sqm land plots available.  There are 5 price levels depending on the distance to the beach.

The closest land plots are EUR35/sqm and the furthest land plots are EUR15/sqm, so the prices for the land start from an amazing low price of EUR7,500.

EUR1,000 is required as a reservation deposit, to take your plot off the market, and the balance is payable once your contract for your land is signed.

There is no time restriction for when you need to build.  You can just hold the land for land banking if you wish.

If you would like to build a villa, you must use the site developer to construct your villa.  You can choose from 2 or 3 designs models, and the price starts from EUR450/sqm for medium-high quality construction.

The timescale the developer guarantees your villa will be constructed is 3 years.  This will allow time for the infrastructure to be available.

The site developer will retain ownership of all the common land, so they will have an ongoing vested interest in the Village Resort.

Once you have purchased in the Vlora Village Resort, you will become a member of the Resort Club, giving you access to all the Resort facilities.

Regarding the maintenance fee, currently the management company for the site has not yet been established, so if you buy the land plot now, there are no management or maintenance fees to be paid for the moment.

Villa Stage Payments

If you decide to go ahead and have your villa constructed, the stage payments required during the building phase are as follows:

1. 30% of villa build cost on receipt of building permission
2. 30% of villa build cost within 30 days of the completion of the shell of the villa
3. 30% of villa build cost within 30 days of receiving the keys/ build complete
4. 10% of villa build cost on receipt of hypotek/ title deed

This is a unique opportunity to invest for your personal use or for an investment return, in the changing seafront real estate market of Albania.  The first phase of the resort will offer luxury Albanian property for a very low price.

For More Information please visit our

• Fresh Property Albania website
• Flickr Vlora Village Resort site photos
• You Tube Video - view of beach of Vlora Village Resort
• Facebook Fresh Property Albania page

Tirana, the capital city of Albania, is going through a retail boom. Recent modern apartment buildings in Tirana centre, were not really designed as proper retail/shopping centres, but almost accidently became that way – European Trade Centre (ETC) on Boulevard Bajram Curri and the Twin Towers on Deshmoret e Kombit.

One of the earliest dedicated retail complexes was QTU (Qendra Tregtare Univers) located on the Tirana-Durres Highway, 6km from the centre of Tirana.  QTU is currently the largest shopping centre in Albania.  Also QTU seems to be expanding, by taking over a building in the centre of Tirana on Abdyl Frasheri and calling it QTU City, and also taking over buildings in Fier and Vlora and renovating them with their branding.

After QTU, opened  Casa Italia Shopping Centre at Kamza Crossing in Kashar, a little closer to the centre.  Next was the Kristal Center in Komuna Parisit. To make easier access for shoppers and to attract more customers, Casa Italia and QTU run free regular buses from the centre of Tirana – Skenderbeg Square.

Albanians seem to be happy to visit the new shopping centres, but are still using the main street shopping locations as well, like Myslym Shyri.

There seems to be much anticipation generated for the new shopping centre – City Park Tirana. The brand new shopping “city” will be the largest retail park in Albania, when it opens in September 2009.

But even before the opening, another new larger shopping centre is in the works – Tirana East Gate. This goes to show that higher demand is expected by retail investors. The EBRD (European Bank of Reconstruction and Development) will support the project with funding up to EUR24 million.

The shopping park will be a modern family-oriented retail and entertainment centre in Lundër, Farka, 5km south-east of Tirana. This will create HUGE demand for housing and property in this location, where real estate prices are currently very low.

The project will offer 39,000sqm of retail, happy-shopper space, around 1,600 parking spaces, and will create 100s of jobs for the locals.

Albania is changing and growing, boosted by the emerging middle class, the current population growth, foreign investment, remittances from Albanians abroad, and educated Albanians returning to their homeland. Even in the global economic crisis, Albania continues to grow, and the new East Gate Shopping Park will lead Albania into a whole new retail world.

Dhermi beach (Drymades) has always been a favourite swimming spot of mine.  Positioned in south Albania on the Albanian Riviera, this tiny coastal resort is 40 minutes drive from Vlora over the Llogora Pass, and 100 minutes drive from Saranda.  The pebbly beaches and crystal clear turquoise water, make Dhermi appear to be the perfect holiday destination.  But does this mean it is the perfect holiday destination, and will property and land here be the perfect investment?

Dhermi has always been popular for holidays, in the past the government elite chose to spend their vacations here.  It was especially preferred by the ex-dictator Enver Hoxha, as he had a villa over-looking the coast.  The Ionian clear waters set against the dramatic mountainous backdrop create a breathtaking scene.

It’s July, and for a beachside “resort”, it feels a little like a ghost town.   Which leaves me to ponder, what is wrong with Dhermi?  Where are all the tourists?  Dhermi has its fair share of current problems that can only leave me guessing:

1. Bad Infrastructure.  The road from Vlora to Dhermi via Lloggora was completed a few years ago which immediately created better access, especially from Tirana.  Currently the road from Dhermi to Saranda is nearly complete, due September 2009, which will further open up access from the south.  Unfortunately the road from the highway down to the beach is in a very bad state and there wasn’t an indication when this would be fixed.  Even though the main road is 100% improved, other problems exist like electricity that fluctuates and blackouts, and no internet access.  The electrical flares are destroying appliances, and a mediation box needs to be purchased to moderate the flows.  I am not sure how long it will take to fix these issues.  Now there is a bitumen road, there will be faster investment in the area, but it will still take years to resolve these issues.

2. Limited facilities/ Things to do. Other than beach activities - swimming, sunbathing, watersports and walking on the beach, there is not a great deal to do in Dhermi.  This may be perfect for some people wanting to lie on the beach for 15 days, but for other people, there is a chance of going crazy.  Also there are only a couple of bars and restaurants, which are quite expensive (compared to other Albanian seaside towns), so you may feel stuck for choice.
With a car, you can visit Lllogora Wildlife Park (15mins drive) or Orikum Archeological sites (25 mins drive) or Vlora City, Port and beaches (40 mins drive), but to drive over the steep mountain more than once or twice may not be so good for your car.  I’ve heard there is a disko nearby for people who enjoy the “nightlife”, but it was so quiet, I’m not 100% sure.

3. Litter/ Rubbish.  This problem is not exclusive just to Dhermi, but there is clearly a huge issue with rubbish disposal.  In summer a greater effort is made to tidy things up, but as the tourist numbers and population grows, this issue will require attention and a major solution.

4. Expensive and Over-Priced.  For the limited infrastructure and things to do, Dhermi felt a bit expensive.  I wasn’t too surprised that sea view accommodation was booked up by the regulars in advance, as finding a spare room in the limited available hotels/ rooms wasn’t easy.  In the end EUR50 for a room with no sea view and no air con, does not feel like a good deal.  And I am yet to be impressed by the food.  The seafood and salad I had at Hotel 2000 Restaurant was very average.  I also tried a 600leke pizza from a local pizzeria.  It was very nice, but 600 leke?
With the local street stall selling a can of softdrink soda for 120 leke this seems truly beyond the average Albanians holiday budget.  The current average salary in Albania is only about EUR300 per month.  If Albanians tourists cannot afford to visit, how can a tiny seaside village resort in Albania survive?

Holidays in Dhermi have their problems and limitations, but what about the issues for property and real estate investors:

1. Title Deeds. In regards to property investment, buying land or property here may be tricky.  Unresolved title deed land issues are common, and caution needs to be exercised.  Land with no documents, or with multiple owners holding the same official documents for the same piece of land, is THE BIGGEST obstacle and deterrent for property investors.  This issue is still a huge risk across Albania, so when buying don’t just believe the documents you see.  Have someone, preferably a lawyer, check and double check all documents before parting with your cash.

2. Large Land. Small land plots are mostly unheard of.  So the idea of a little piece of land next to the sea can be dismissed for now.  Potentially in the future, the current large plots may be subdivided and sold off, but for now, investors need a lot of cash for the huge plots of land for sale.

As an individual property investor, I am not sure I would buy in Dhermi for pure investment, as the area will only ever be a village, and the market will always be seasonal.  For pure investment, nearby locations like Vlora city seem more feasible for better returns.  Having a holiday home here, may be a great idea if you can wait 5 – 10 years for infrastructure to catch up.

Overall, as a location, one cannot deny that Dhermi beach and bay has a magical alluring quality that immediately removes everyday stresses.  If you don’t mind the higher prices and if you are not expecting luxury amenities, than a visit to Dhermi is a must, even if just for a swim.

For more photos, please visit our Flickr page.