Albania is definitely an investors market with prices already appreciating, yet with massive potential for capital growth predicted. Investing off plan can represent the quickest returns if a reputable developer is used. The property market is currently under capacity but over-development could result in saturation, so location is essential in any decision.
Secure the best unit in advance.
The optimum return and surest way of capitalising on off plan property is to invest in the prime unit of a development. Opting for the penthouse unit in advance offers the best return and the easiest chance of a quick resale.
Check the developer.
Securing the right location and developer are major factors. Employ an attorney to check the credentials of the developer and legitimacy of land ownership, planning rights, and previous developments: Were they completed on schedule? Did the finished developments comply with legal ordinances? Speak to previous investors – would they do business again? Has he any ties with the local government? Let the developer know you are in the market for additional investments if he delivers.
Check the location and surrounds thoroughly.
It is important to put location before price. It is pointless saving a few thousand Euros on the total investment if the finished unit cannot offer an unobscured view. Check with the municipality regarding planning rights for other local developments which could impinge on your selection. If you opt for the coast pay the extra for a front line property.
Are there guarantees in place regarding infrastructure improvements?
There are so many promises regarding improved infrastructure in Albania but you need a guarantee from the municipality as well as the developer. Roads, electricity supplies and waste disposal are all promised as improvements in many areas but check the time frame. You need a guarantee they will be in place before the development is complete or you could end up sitting on an empty apartment with no rental income or no sale.
Know your target market.
If you are considering rental income while waiting for capital appreciation you should know who your target market is. Holidaymakers taking advantage of inexpensive holidays in Albania will be opting for the coastal areas with easy access from Tirana or Corfu. If you buy in the capital are you targeting foreign business men for rentals, professional Albanians or the general populace?
Off plan represents the best investment if the key factors all coincide in the development. A discount of 20% on current market prices could yield a hefty return if the development comes in on schedule and the predictions of economic growth in Albania materialise.
If nothing else, off plan property in Albania is the best deal around in foreign property investment markets and has the key elements in place for predicted capital growth. Off plan investment in Albania is perhaps not for the nervous investor, but an excellent opportunity for the risk taker.