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Foreign investments in the real estate sector in Albania have crossed the threshold of one billion euros.
The data from the Bank of Albania show that the stock of these investments has grown rapidly in recent years.
At the end of September, it was estimated that the total investment of foreign individuals or entities in the real estate market in Albania reached 1 billion and 35 million euros, an increase of 43% compared to the same period a year ago, Monitor reports.
Since 2015, the stock of foreign investment in real estate has almost increased tenfold. Investments in the real estate sector now account for 9.5% of total foreign investment in the country, the highest share ever recorded.
New flows of foreign investments in real estate for the 9th month of 2022 reached the value of 225 million euros, increasing by 60% compared to the same period last year.
According to market agents, the demand of foreign nationals or non-residents in Albania has played an important role in the cycle of real estate price increases over the last few years. According to the surveys of the Bank of Albania, about 1/3 of buyers from outside Albania are reported as residents of the European Union.
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| Chart of foreign investments in real estate (million euros), source: Monitor |
Real estate agencies this year report numerous purchase transactions by foreign nationals. According to them, the Czechs and Poles in the south and Durrës, the Germans and the Dutch in Vlora and Durrës, the Italians also in Vlora and Durrës, and the Nordics, especially the Swedes and Finns in Sarandë and Shengjin, predominate in these transactions.
If immigrants have always been a factor with considerable influence in the real estate market, in recent years there has been an increase in foreign nationals choosing to buy property in Albania, especially in coastal areas.
Due to the position of Albania, the climate, and the favorable taxation system compared to the countries where they live, more and more foreign citizens are deciding to invest in property in Albania.
Another factor to consider is the very competitive property prices on the Albanian coast compared to other countries in the Region, such as Montenegro or Croatia.
The strong increase in property prices in recent years has made real estate an even more attractive investment alternative.
This has increased the number of buyers who have bought properties not for residential needs or family use, but for investment purposes. According to the agencies, this category also includes a growing number of foreign investors.
Another phenomenon, according to the agents, is the return of Albanians. Many of them had sold their properties in Albania when they emigrated abroad, due to the need for money at the beginning of emigration.