David Fuller spoke to Richard Bannister of Albania Estate to see why this Balkan country could be an emerging market worth looking at.

David Fuller: Not many people will currently consider the Albanian property market  on a shortlist of places to buy a property overseas. Do you think this will change over the coming year?
 
Richard Bannister: Definitely. It will be a slow process to spread the word. I do, however, think that although the UK and Irish investor are slightly scared of the unknown they are far more prepared to take what they feel are educated risks these days compared to five or ten years ago
 
David Fuller: What are Albania's main attractions for Brits seeking an overseas property? 
 
Richard Bannister: The ease of getting finance, no purchase tax, no capital gains tax, uncomplicated and quick buying process,  and high capital growth. Also the chance to purchase early in a country that has just realised all the good things it has going for it.
 
David Fuller: What do you think the first areas of Albania to open up to overseas property buyers will be? Why do you think this? 
 
Richard Bannister: As in any country in the world people will always look to the cities where in the early stages they can buy cheaply and know they have a good exit strategy or a high rentability due to the demand of locals coming into the cities for work prospects and higher wages. The capital Tirana is the perfect choice in this respect. Then,  of course, you have the wonderful miles of beached coastline flowing from the north to the south, the Adriatic to the Ionian. We all love a warm country with warm seas and pretty beaches. Albania has this and therefore this is a draw to all overseas property buyers as they can see a good rental and exit strategy - if they think its nice then someone else will too.  However, in Albania there is a severe shortage of beach properties.
 
David Fuller: How lively has the Albanian property market been over the past few years in terms of capital appreciation? 
 
Richard Bannister: Before 2004 there was not really a market to produce any sort of gauge. However, what we do know is that desirable properties such as in Tirana and around the few around the coast have been averaging around 30 per cent per year.  
 
David Fuller: What is the  Albanian property market's capital appreciation outlook for the next 12 months?  
 
Richard Bannister: Again the signs for the overseas property investor are encouraging as we expect the same sort of figure again this year. Like all emerging markets the earlier you get in the bigger the margins. 
 
David Fuller: Are there any potential problems someone buying a home in Albania should know about, either in the purchasing of the property itself or spending time in the country? 
 
Richard Bannister: There is an open door for foreigners to buy in Albania without ever setting foot in the country. But like many countries in Europe and especially the Balkans, the biggest problem is clean title deeds. It is imperative that you ask the representing local lawyer to give you guarantees in English that the titles are clean and therefore there will be no dispute. It will,  of course,  be written in the contract that you sign but if you are ever unsure make sure you have an local UK-based lawyer who has experience of international law to double check the contract before it arrives to you. Albania is one of the most peaceful and friendly places I have ever been to. The people are kind and courteous to foreigners and I and my associates have never felt intimidated at any time or had fear of violence.  
 
David Fuller: How much should you expect a decent property in Albania to set you back?  
 
Richard Bannister: Somewhere decent would cost you between 50,000 and 80,000 euros ( £33,000-£53,000). This would buy you a nice two-bedroom apartment in Tirana with a balcony. It would also buy you a two-bedroom newly built apartment in a beach resort. 
 
David Fuller: What would a top-end property in Albania be and how much would this cost? 
 
Richard Bannister:  One or two of the very top apartments in the very best district in Tirana are now selling for between 1,500 and 2,000 euros per square metre (120,000-160,000 euros  / £80,000-£108,000). Decent top-end villas and cottages are a rarity at the moment but with plots of land being sold often with planning permission and the low build costs and taxes it is possible to have a villa of your own on the beach with swimming pool and with all services for 120,000 euros (£80,000).

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Article published on 1 February 2007