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21-August-2008
Award-winning Property Investment Ticks All the Boxes
Overseas property investment specialist, Obelisk, has a passion for excellence and the company’s determination to offer superior standards and high professionalism at all stages of property investment has reaped its rewards.
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Property Investment in Albania 2008
Albania is displaying a new, exciting, and emerging property market that property investors can benefit greatly from; huge growth potential coupled with a low cost of living and extremely low property prices certainly presents Albania as an interesting destination for bullish returns.
A huge potential for tourism, Albania is tipped to follow on from the success seen by Croatia and Montenegro. Albania's stunning mountains and lakes, and the Adriatic and Ionian coast in the west and south-west, is favoured by tourists of all ages and agendas.
"Travel and tourism figures for the end of 2007 are set to confirm an impressive $2.247 million income into the economy."
Travel and tourism figures for the end of 2007 are set to confirm an impressive $2.247 million income into the economy, and statistics released by the World Travel and Tourism Council forecast 5.6% growth year-on-year for the period 2008 to 2017. Annual tourist inflows have risen from 150,000 in 2000 to 450,000 in 2005, with the Albanian Ministry for Culture Tourism and Sport aiming to double this number, increasing tourism generated income to 15% of GDP equivalent to $462 million.
Tirana International Airport is to undergo an $80 million expansion project, with British Airways now operating flights three times a week, and a further 29 destinations available through various carriers. A new highway connecting Dubrovnik in Croatia down the entire length of the coast to the popular tourism destination of Sarande is currently under construction. Sarande has also now been included into easyJet's summer 2008 easyCruiseOne's itinerary.
After the fall of communism in the 90's, the country entered a new era in terms of economic growth realising an astonishing 85% growth in GDP per capita. Particular growth areas are the industrial and construction industry with the service industry now accounting for over 50% of GDP. The young population of Albania is a strong factor in the country's economy with 65% of the population of working age, and according to the EU, unemployment is falling at a steady rate.
The private sector has grown from 0% to 75% since 1995 spurred on by a stable currency and a very low interest rate of 2.5%. The legal framework "On Foreign Investment" brought into effect in 1994 gives foreign investors the right to fully own non-agricultural land, property, and companies and expatriate all funds, which has also aided large-scale privatisation.
A large number of Albanians live and work abroad, sending money home, adding to the country's economic stability. Last year the figure equated to a staggering $1.25 billion or 13% of GDP, most of which has been invested into the property market. The high demand for quality real estate in metropolitan zones and coastal areas of Albania has fuelled the residential property market, which now makes up 60% of all construction in Albania. In the most sought-after areas, property prices have increased by 200%, with an overall increase of 20% year-on-year, according to the UN.
There is much to attract the serious real estate investor to property investment in Albania. The country has an established mortgage market for both residents and foreign property buyers of up to 80% loan-to-value over 10 to 15 years. The local currency is very stable but foreign investors may find it beneficial to mortgage in Euros.
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