The capital city of Albania, Tirana, is the cheapest capital city in Europe, and predicted to become a good investment opportunity for both rental yield and long term capital growth. The infrastructure of Albania is slowly being improved and development is rife in Tirana. This is in anticipation of foreign businesses moving into the area, more Albanians moving to the capital in search of better jobs, and more Albanians returning from overseas to work at home. Tirana University is turning out graduates who will remain in the city, and accommodation does not meet demand.
A mass of concrete development is springing up by developers who are eagerly targeting their properties to foreign investors seeking foreign investment opportunities. Tirana is being marketed as the place to invest for Albanians to rent as well as for foreign workers. However not all the developments are being marketed in a strictly honest way as are sold as being close to the city center when they are not, and being described as in clean areas which they patently aren’t. Although Tirana is safer than it was, the reality is that investors must visit before buying and making their own assessments, rather than rely on the somewhat dubious advertising flying around the internet.
Tirana should provide capital growth: as one Albanian said it’s impossible for Albania to get any worse, and with the influx of European funds and the likelihood of Albania being accepted into the EU around 2014, it should prove a wise investment for the long term. Investors need to take the time though to source a recognized developer and good lawyer and carefully consider the type of development to invest in.
Gated developments on the outskirts of the capital which provide security are likely to be popular long term as Albanians who improve their income will want to move away from the center into something more elite and safe. Primary consideration should be given to anti seismic developments, and those close to Tirana’s business district. Rental yields in secured developments are the most likely to have long term increases as the suburbs become a more attractive choice than the city center.
Tirana is the major port city of Albania with a newly improved international airport 25kms from the center. Improved roads now make access to the coast less than an hour’s journey. Tirana lake view properties could also be a good investment as long as the view is protected and there is no chance of another concrete block being thrown up in front of it.
Currently there are no restrictions to foreigners investing in property, rental yields are set to improve, and capital growth predicted but determined by the investing in the right area of Tirana. It is still possible to invest in brand now apartments in the city center for less than 30,000 Euros, and for those who take the time to research developments thoroughly Tirana appears a good long term, albeit risky, investment.