According to a report done by a British real estate investment firm, Albania is a prime country for global real estate investment. Certain fundamental elements which include geographical, political and economic factors are the reasons that make the country’s future regarding real estate quite promising and rewarding. Despite being the least developed nation in Europe, it can offer opportunities for the real estate investors globally due to the reasons discussed in the ensuing paragraphs.
Politically, Albania has been able to create an environment that is conducive for the trade by resuscitating the issuing of construction permits. Due to this positive development, real estate investors have ended up taking advantage of the opportunity. Besides, the stimulation of the property market has created an upward trend in the property prices which translates to apt investors striking it lucky in real estate ventures (Kraja Boriçi and Osmani 27-32). Moreover, its democratic system of governance has also come in handy in making Albania come into the limelight as a landing place for new real estate investments. Joining the European Union as well as NATO later in the year has also been a step in the right direction.
Its stable economic environment has facilitated real estate expansion in Albania. The country has exhibited progression by the six percent growth in its Gross Domestic Product. The growth is also coupled with the fact that the increase was experienced in a period when the costs of living were reasonably low. Investors are therefore able to make accurate judgements based on such stable economic factors as it affects their rate of return in the trade (Graaskamp 619-639).
Besides, foreign investments in the country have been aided by its solid legal fabric. Most foreign investors can efficiently invest in Albania as there are few restrictions that they face. For instance, foreigners may purchase land for commercial purposes if it is established that the returns would be more than three times the purchase price. Moreover, a ninety-nine-year lease is offered for agricultural land as it cannot be sold. Such circumstances create a favourable environment for Albania to attract as well as retain real estate investors.
Furthermore, Albania offers tax advantages that attract international investors. Such tax advantages end up lowering the costs if transactions which are the aim of any investor as most would only want to maximise profits. Foreign investors also aid in complementing domestic investment which is a boost for an economy that seeks to increase its accumulation of capital (Yulek and Gur 245-256). The absence of various taxes including Value Added Tax on property purchases, inheritance tax, withholding tax, capital gains tax, transfer tax as well as wealth or state taxes are some of the economic advantages that the nation has created to help drive its growth globally. As a result, investors’ capital is likely to appreciate by a whopping thirty percent putting into consideration the type of investment and the nature of the company.
Lastly, Albania has a rich geographic history that is yet to be discovered and revealed to non-Balkans. It is the pride of any nation to preserve its history in a way that makes it attractive to foreigners. Geographically, the country boasts of favourable climatic conditions which are an advantage especially regarding attracting foreign investments. It is through such geographic factors that Balkan destinations can allure investors from across the globe.
In conclusion, Albania is a rich country that is well endowed with economic, political and geographic factors that can steer it forward as ‘the next big thing’ in global real estate investment (Bermejo Carbonell and Werner 425-456). Moreover, it is important to realise that all these factors are interrelated hence it would be a fallacy to rely solely on any one of them.
Works Cited
Bermejo Carbonell, Jorge, and Richard A. Werner. "Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied To Spain." Economic Geography 94.4 (2018): 425-456. Web. 8 Aug. 2018.
Graaskamp, James A. "Fundamentals Of Real Estate Development." Journal of Property Valuation and Investment 10.3 (1992): 619-639. Web. 8 Aug. 2018.
Kraja Boriçi, Ylvije, and Elezi Osmani. "Foreign Direct Investment And Economic Growth In Albania." ECONOMICS 3.2 (2015): 27-32. Web. 8 Aug. 2018.
Yulek, Murat, and Nurullah Gur. "Foreign Direct Investment, Smart Policies And Economic Growth." Progress in Development Studies 17.3 (2017): 245-256. Web. 8 Aug. 2018.
