Had you told someone ten years ago that in just five years time Eastern European countries like Bulgaria, Romania, Hungary and Poland would be appealing destinations in which to own a home, you would have been met with howls of laughter and looks of disbelief before being carted off to the nearest asylum – where your mad rantings could be closely monitored by a team of highly-paid medical experts.

Well, a decade on and this quartet of former communist countries have all become much sought-after destinations for British investors. Therefore, far from being mad, the people who made such wild sounding speculations all those years ago, and were prepared to put their money where their mouth was, have probably since made a tidy sum of money. So, when I say it could be worth taking a close look at current developments in Albania, instead of rolling your eyes, stifling a laugh and getting ready to call out the men in white coats, hear me out.

Sharing a southern border with Greece, and separated from Italy by just 100 kilometres of water, Albania has a picturesque coastline lapped by both the Adriatic and Ionian Seas, where temperatures average a pleasant 15oC annually, and close to 25oC in the summer. "As with most countries that are just starting off in the overseas investment game, the coast will be where the average investor looks first," says Richard Bannister of Albania Estate. "Resorts such as the one we are selling on the beach at Golem [located on the Adriatic coast, about an hour's drive west of the country's capital, Tirana] will help enhance the country's reputation for tourists and investors alike. Some travel operators have already expressed a keen interest in the country," he adds. The prices for an apartment in this resort start from just 16,500 euros and offer guaranteed rental income. Away from the coast, Tirana is also somewhere worth looking into. Presently undergoing a period of mass redevelopment as it tries to develop a similarly thriving tourist industry to those which can now be seen in other Eastern European capitals – think Sofia, Budapest and Warsaw – many buildings in the city have been given a fresh coat of paint in order to move the city away from the dour greyness of its communist past, while its infrastructure slowly but surely continues to improve. Bannister says that apartments in the city's Fortesa development have a slightly higher entry price, at 28,500 euros, but that properties in Tirana are likely to hold a little more investment potential for purchasers.

A key future development, and one that has been responsible for fuelling other Eastern European property markets in recent times, would be if Albania were to join the European Union. The country took a major step towards doing this last year when, following three years of negotiations, it signed a Stabilisation and Association agreement with the EU – which shows the Union recognises the progress of political and economic reform Albania has made. The country is hopeful of formerly being invited to join next year. "I believe that Albania has enormous potential for the intrepid property investor at the moment," says Bannister. "Of course, it will not be right for some investors just yet, but judging from the reaction I have had over the last six months, it is definitely right for others."

For further information:
Albania Estate  

Macedonia? Not yet
In December 2005 the Republic of Macedonia was granted candidate status for future membership of the EU. However, while in theory this should make Macedonia an interesting proposition for property investors, as yet such interest is not forthcoming. There are a few reasons for this. The break up of Yugoslavia in the early 1990s left Macedonia as the former country's poorest republic, and its economy has struggled to recover ever since. A disagreement with bordering Greece over the country's name – the Greek refuse to recognise the Republic of Macedonia, preferring instead the Former Yugoslav Republic of Macedonia, which Macedonians themselves don't like – led to Greece imposing an economic blockade on the country for a period in the mid 1990s, which really hampered the Republic's economy.

This ongoing dispute, along with a current disagreement with Bulgaria, also threatens to hold up its EU membership application. The Macedonian government has stated they are hopeful of  being invited to join the Union – along with Croatia and Albania – at its next summit in 2008, and gain accession in 2012, but the prevailing arguments with these already EU member countries will need to be ironed out first – something that seems unlikely anytime soon.

Perhaps another factor holding Macedonia back as an overseas property hotspot is the fact it is landlocked, so has no coastline with which to lure tourists and investors; while its capital Skopje is not yet as developed as other capitals in that corner of Europe. All this isn't to say that Macedonia won't one day become more popular. It does boast two picturesque mountain ranges – the Dinarska and Rodopska – a number of scenic lakes and rivers, a warm summer climate, while the country's government has announced plans to introduce tax systems designed to make it a more attractive location for prospective foreign investors. But for the time being, Macedonia is not quite ready to provide adequately for the overseas property seeker.

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Article published on 16 April 2007