EU Accession – Effect on Albania’s property market
Joining the EU over the past decade has led to staggering effects on a country’s property prices. For instance property prices in Estonia trebled on entering the EU, the Slovak Republic and Slovenia saw property prices double and Cyprus saw a 40% increase.
So how might Albania’s property market react in 2014 when it joins the EU?
Since 2008 the economic crisis hit almost every country in the world with force. However several economies have already started to recover and the news is looking good for the Balkan states.
Forecasts by experts say that the Balkan Penninsular will start their recovery in 2011 and they are confident that it is time to invest. Activity in the private sector has recently showed an increase in merger and acquisition transactions as well as restarting property developments which had been purchased before the crisis. Experts believe that real estate will be the first sector to benefit from this recovery.
In a recent poll conducted by Arrowtrak of businesses in the region, it stated that: “37% are considering expanding into the Balkans, investing or creating a joint venture within the next year.” This potential surge of investment will have the effect of increasing wealth in the relevant countries. With more overseas investment Albania will see an increase in expats moving to the area. This will benefit property prices, particularly focusing on areas where they will live and weekend away.
One such development is Lalzit Bay Resort and Spa. This development is being fully managed by a resort operator and will provide 5 star amentities to its guests. Ravin Maharajah, Sales Director, says: “Lalzit Bay will be one of the most desirable resort destinations in the Eastern Mediterranean. Its first class accommodation and leisure facilities will come with cutting edge design, exceptional quality and an attention to detail not normally seen in Albania.”
Albania is working very hard to change it’s image and is confident that by 2014, as it enters the EU that it will be considered a “new-era” destination hot spot, that will appeal to far more than just the intrepid traveler..
Albania’s Prime Minister, Sali Berisha, has pledged “to attract greater foreign investment and development”. He is welcoming expansion programmes such as Lalzit Bay, bringing with it jobs for local people, foreign wealth and a touch of class and sophistication that has not been seen in this country before. With a strong leader such as Berisha, it is not surprising that Albania can claim to have doubled the national income over the last five years.
More good news for the Balkan States is that the European Union Ministers have said visa requirements for Albanians and Bosnians will be lifted starting in December 2010 as the two states work towards EU membership. This signals very positive messages to these two countries that are working so hard towards their EU accession.
The air of optimism is blowing in the Balkans, and the smart money is alreadytaking advantage of this unique situation before the window of opportunity narrows.
Apartments in Lalzit Bay Resort & Spa are available from just €50,400. Villas are priced from €234,000. For more information contact Lalzit Bay on 0845 125 8600 or visit www.lalzitbay.com.