Albania Buyers Guide

Your Gate to Investing in Albania
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www.Albania-Estate.com
Albania Property Guide
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About Albania & Albanians
International integration
Economic data
Why should I invest in Albania?
Albanian Cities
Questions & Answers
Conclusion
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Albania covers a total area of 28,748 km, with a
coastline of 362 km. Albanian Coastline borders in
the Adriatic and Ionian Seas.
The territories of present day Albania have been
inhabited as early back as 100.000 years ago. At the
turn of the third millennium B.C. an Indo - European
population settled there. As the result of the mixture,
a population incorporating the unique cultural and
linguistic characteristics of the whole Balkan
Peninsula (pelages) was created.
Based on this ancient population, the Illyrian people
developed through the second millennium and the
first century B.C. After its fall in the year 30 B.C.
Illyrian came under the control of Roman Empire.
With the division of the Roman Empire (395 A.D),
Illyrian became a part of the Byzantine Empire.
The country has suffered continuous invasions over
the last 1000 years and by the end of the 14th century
Albania was occupied by the Ottoman Empire.
Scanderbeg square in the center of Tirana Capital of Albania
Location of Albania in Europe
Map of Albania
History of Albania
About Albania and Albanians
TIRANA
MACEDONIA
ADRIATIC
SEA
IONIC SEA
KOSOVO
MONTENEGRO
GREECE
Durrs
Kavaja
Elbasan
Pogradec
La
Lezha
Peshkopi
Lushnje
Fier
Vlora
Saranda
Berat
Kora
Tepelena
Shkodra
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Albanians fought successfully Ottomans
during 1443-1468 under the legendary
Leader Gjergj Kastrioti Scanderbeg.
Ottoman Empire at its best was stopped
by Albanians who saved Europe from
the invasion. The subsequent efforts and
insurrections for independence brought
about proclamation of the independence
of Albania in 1912. After 1912 till the
end of the First World War, the country
was attacked by neighboring countries.
After eleven years of monarchy the
country was occupied by Mussolini
forces in 1939, putting the end of
monarchy. In 1943 the armies of Hitler
occupied the country.
The resistanc e against foreign invasion
was known as the AntiFascist National
Liberation front. The Communist party
took power in November 1944, when
the foreign armies were expelled.
Shortly thereafter, a totalitarian regime
was established under the communist
leader Enver Hoxha. For about 50 years,
the regime applied the policy of self-
isolation, leaving the country in great
economic poverty when it finally
emerged from isolation in 1991.
The principle of self-reliance applied
by the Communist reg ime prohibited
foreign loans, credits and investment.
From 1991 untill 1997 the Democratic
Party led the country. After the unrests
of 1997 due to the failure of pyramidal
schemes the Socialist Party with its
coalition was in power until 2005. After
the last elections on 3 July 2005 The
Democratic Party with its coalition is
turn back in power. Albanian policy
intends to integrate the country into
European Community

and the Alliance
of NATO forces.
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Albania has a population of 3.64
Million (est. July, 2009) but only 3.1
Million are residents and the difference
is made of Albanian emigrants who
live and work mostly in Greece and
Italy.
Median age ~ 30 years
Life expectancy at 78 years
Albanian capital: Tirana with
approx 900K inhabitants
Albania is a secular country. Albania is
well known for its model of religious
tolerance and this goes back centuries
ago when Muslim religion was first
introduced into Albania by the
Ottomans. In the country live together
Catholics, Orthodox, Evangelists and
Muslims. According to the 20072008
Gallup polls, 63% of Albanians claim
that religion does not play an important
role in their life.
Butrint-Sarande a unique cultural heritage
Total Albanians in region: 6 Million (est)
Albania: 3.1M
Kosovo: 1.87M
Emigrants
0.54M
0.52M
Macedonia
Population
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Europe - Albanias long time aspiration
Albania is a member of the UN since 14 December 1955
Paving the way for
European Integration
Credit Insurance Rating
Parliamentary Democracy
Member NATO April 2009
Albania to become a member of the European Union
by year 2014-15
Political Risk: 3 (1 = best; 7 = worst),
Financial market: B1, Moodys classified as a
country of stable outlook (Mar. 2012)
The enactment rule of law is foundation of free
society
All new laws are in accordance with western
standards
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Albanian current Currency
Economic Indicators
Commercial Banks (2012)
Exchange r ate (August, 2012)
EUR/ALL 138
USD/ALL 110.4
EUR/USD 1.25
GDP - Real Grouth Rate: 2.5% (2011 est.)
GDP - per capita: $7,800 (2011 est.), $7,600 (2010 est.)
Inflation Rate: 3.9% (2011 est.), 3.5% (2010 est.)
Exports: $1,886 billion (2011 est.), $1.548 billion
(2010 est.)
Export Partners: Italy 50.8%, Kosovo 6.2%, Turkey
5.9%, Greece 5.4%
Imports: $5.022 billion (2011 est.), $4.305 billion
(2010 est.)
Import Partners: Italy 28%, Greece 13%, China
6.3%, Turkey 5.6%, Germany 5.6%
Public Debt: 59.4% of GDP (2011 est.)
Investment: 31% of GDP (2011 est.)
Alpha Bank Albania
Intesa Sanpaolo Bank Albania Banka
Societe Generale (SG)
Credins Bank (CB)
Credit Bank of Albania (CBA)
Credit Agricole Emporiki bank (CA)
First Investment Bank (Tirana Branch (FIB)
First Investment Bank, Albania sh. a. (FIB)
International Commercial Bank (ICB)
Italian Development Bank (IDB)
National Bank of Greec e (NBG) Banka
Kombetare Tregtare BKT Procredit
Bank (PCB)
Raifeisen Albania (RZB)
Tirana Bank (TB) (Part of Piraeus Bank)
Union Bank (Albania) (UB)
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Albanian Southern Riviera unlimited potential for development
Albanias Infrastructure
Why should I invest in Albania?
Privatization, Concessions, Reforms
BOT/PPP sectors & projects
Domestic economy & exports are expanding
Established trading patterns with the EU
Gateway to the Balkans Free Trade Area
Total labor costs are lower than comparable countries
Social security on costs amount - 31% of gross wages
Adaptable and flexible skilled labor force
Extensive language skills, a lot of the younger
generation are college graduates
Investment opportunities through privatization
Government assets / real estate properties (Feb 2010)
Road construction
The whole program is expec ted to finance 1,000
1,500 kilometers of roads
(signed a crediting ag reement with the EBRD)
Energy
Hydro Power Plant
Renewable energy Health care
Water
Mines
Telecom infrastructures
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Construction Development in Tirana
Urban development in Tirana
Tirana enjoys a beaut iful setting between
the ranges of Dajti Mountain from one
side and the coastal plains on the other
one. This relatively new city was founded
in 1614 by Sulejmen Pashe Bargjini,
feudal lord of that time, and proclaimed
capital in 1920. However the area has
been inhabited as early back as the
Neolitic period.
With a population of approx 800,000
inhabitants, Tirana is growing rapidly,
and is a busy commercial and adminis-
trative center with several comfortable
hotels, restaurants, discos, pubs as well
as modern facilities for conventions
and conferences. About 70% of the
businesses are located in Tirana area.
It is always nice to have a walk in the
Grand Park, lying in the southern part
of the city and extending over an area
of 250 hectares with an artificial lake
included. It has 120 kind of
plants, decorative shrubs and flowers of
various colors.
Albania Estate has a lot of properties for
sale or for rent in the city of Tirana.
Our agents in the city will be able to
help identify great deals for our clients.
Tirana Albanias capital city
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Beach in Saranda
Seashore of Saranda, offers a unique
atmosphere and style that steels the
heart of all its visitors.
The sea panorama, the variety of flora,
favored by the soft climate, make
Saranda the preferred center for rest and
recreation and an important tourist
town.
Most Albanian couples come to spend
their honey-moon in Saranda. Thats
why it is known in Albania as the town
of the honey-mooners.
Saranda is situated in an open sea gulf,
opposite the island of Corfu (Greece).
Saranda is an animated town between
the mountains and the Ionian Sea,61km
south-west of Gjirokastra.
There are today, daily ferry services to
and from Corfu.
Saranda is rapidly developing into the
southern gateway for tourism into
Albania.
In year 2000 Saranda was visited by 50
thousand foreign tourists and many more
Albanian tourists.
Near Saranda stood the ancient Illyrian
city of Onchesmos, mentioned as a port
in the 1st century B.C.
In the 4th century A.C. the town was
fortified with walls.
Inside the walls have been excavated the
remains of dwellings, water cisterns and
an early Christian Basilica of the 5th and
6th century, containing a beautiful
multicolored floor mosaic.
Other mosaics are to be found in the
district
The ruins are also preserved of an early
Christian Monastery, of the 40 Saints,
from which the modern name of the
town (Saranda) is derived.
Albania Estate has an in depth knowledge
of the city of Saranda and the best
properties
Our office in Saranda will always be
there to take care of our clients needs.
Saranda The Pearl of the South
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museum.
for sale.
Durres is an ancient city, founded in 627
B.C. and known by the names
Epidamnus and later on Dyrrachium.
The most important archaeological site
is the Amphitheatre, the largest in the
Balkan Peninsula, built in the 2nd
century B.C. with a capacity of 15 20
thousaand spectators and containing an
early Christian Crypt with rare wall
mosaics.
Worth visiting is also the fortress of
Durres of the early Middle Age, VVI
Centuries.
Durres is the largest beach and sea
destination in Albania. With a coast of 6
km long and 150 180 meters wide, only
30 km from Tirana. International
Airport and 39 km far from the capital
Tirana. Along the seaside there are
tourist estab -lishments which provide
adequa te services.
Durres is the largest beach and sea
destination in Albania.
With a coast of 6 km long and 150 180
meters wide, only 30 km from Tirana
International Airport and 39 km far
from the capital Tirana.
Along the seaside there are tourist
establishments which provide adequate
services.
Durres is the second largest city of
Albania with a population of 150,000
inhabitants which gets almost doubled
during the summer!
It is the biggest seapor t and the main
railway connec tion center. Located in
the vicinity of international Airport of
Rinas and the capital, Durres maintains
regular connections with Italian ports.
Our properties in the city lies mainly on
the beach area and it gives our clients
the convenience of being close to Tirana
International Airport which is only 20
minutes away
Durrsi Albanias oldest city
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Cold Water rocky beach in Vlora Beach in Vlora
The adorable Ionian riviera spans the whole length of Vlora
Vlora coast is situated in the southwestern part of Albania, exactly where the
Adriatic and Ionian seas meet. Vlora, through the Otranto Channel, is the nearest
point of Albania to Italy (72km). It is 135 km far from Tirana and 123km from
Greece.
Along Vlora coastline you will find outstanding white beaches and stunning
surroundings. Lots of beautiful beaches in places like the natural Park of Llogara,
Dhermi, Palasa, Himare and Cold Water (famous for its rich clientele and natural
water resources). Vlora averages 274 days of sunshine in a year.
Albania Estate has several great offers from the city of Vlora. Our contacts on the
ground are extensive and this city offers the luxury of being in the middle of the
south of Albania. So you are equally close to Saranda or Tirana.
Vlora Miles of White Beaches
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What is happening in the Albania Real Estate Market?
Do apartments come furnished?
How much is the Reservation / Agency fee?
What are the payment terms?
How can I instruct a lawyer?
What is the process after the initial reservation fee is paid?
What other costs do I need to be aware of?
Is there a need for car parking?
Approx how much are communal charges?
Are there any guarantees from the developers?
Now is the best time to invest in Albania
Questions and Answers
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YOUR GATEWAY TO.....
ALBANIA REAL ESTATE MARKET!
Offices
In the major office developments the last fifteen years the first office buildings
were the Sky Tower of 8,000 sqm (2005), the Twin Towers of 11,800 sq m
(2005), the European Trade Center of approximately 9,000 sqm (2006), the
G-KAM center of 4,500 sqm (2008) and the Hekla Center of approximately
3,000 sq m (2009). During 2012, no new supply was added to the total office
stock, which has been registered at 63,400 sq m since the first half of 2009
after the entrance of the ABA Business Center into Tiranas Real estate
market. Currently, the Grade A inventory comprises the largest proportion of
office space with 34,300 sq m against 13,000 sq m of grade B+. 16,100 sq m
Grade an office buildings in Tirana include Sky Tower, Twin Towers, the
European Trade Center (ETC) and ABA Business Center. Nearly 80% of the
business towers are located in the Central Business District. The remaining
office stock is spread across the broad center and central Tirana.
Projects currently under construction are expected to increase the office stock
by a further 238,700 sq m in the next 2-3 years, where Archea Tower is
planned to be approximately 12,000 sq m, American BC nearly 3,000 sqm,
Millennium BC 8,700 sqm, TID Tower 15,000 sq m and Tirana Business Park
200,000 sqm
Residential
Q
A
What is happening in the Albania Real Estate Market?
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Residential property prices in Albania have not seen any changes in the past
2 years. The prices in Albania are quoted in . New high-end residential
developments maintain the highest asking prices of 1,100 - 2,000 per sqm
and are located on the best areas. In the mid-market the prices range from
500-700 per sqm.
The prices have been under pressure to go down and we have observed a
decrease in prices in areas that have slow sale rates. But in the luxury areas
there are still high prices and pressure from the buyers to lower
it.
In the first half of 2012 there are issued almost no construction licenses in
Tirana because of the municipality new reforms. There are many reasons why
the supply has slowed down. Factors that contribute to this slow down are
the lack of construction licenses, economic crisis in the neighbor countries
from which Albania has the most remittances, slow development on
completing the constructions by the builders and tougher financing
regulations
from banks and financial institutions.
It would be very unusual to find apartments being sold with furnishing.
Considering that competition is becoming stronger and stronger developers
are more willing to offer furniture, higher quality works, and therefore accept
lower margins. This is a positive sign, and we are witnessing more reasonable
pricing and developers thinkign of offering more than just accomodation.
The Reservation/Agency fee is 2,000 Euro for apartments and Land fees 6 %
on a sliding scale downwards. This fee is payable immediately on return of
the reservation form. On receipt of this money and form, there is usually a
cooling off period of 15 days, in case the buyer, should wish to not proceed
with the purchase.
On receiving of this fee Albania Estate communicates with developing
company and takes the apartment out of the market. With the next step client
can start the legal proceedings in order to finalise the undertaking contract.
Do apartments come furnished?
Q
A
Q
A
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Land Market
The land market in Albania has increased throughout the years due to the
buyers interest in bigger areas, mainly for construction of tourist complexes.
The agro land asking price vary from 15- 200 per sqm depending on the
position, also in relation to the main roads.
The industrial land asking prices vary from 30- 250 per sqm depending on the
position, also in relation to the main roads. The plot land asking prices vary
from 70 - 1,400 per sqm depending on the position, also in relation to the main
roads and to the city. The highest prices are noticed in the proximity coastline
and on the side of national highways.
As a result of the lack of urban studies and indifference to the illegal
constructions, there has been an artificial increase of the land prices in the
tourist areas of the country. With the performing and approval of urban plans
in Albania, significant differences in terms of land value within these areas are
expected.
How much is the Reservation/Agency fee?
Q
A
What are the payment terms?
Generally you would pay between 20%-30% of your total purchase after the
pre-contracts have been signed by you and your POA. The percentage varies
depending on how far the construction is towards completion.
Then we try to put other payments in relation with the stages of construction.
Therefore payments might follow with another 30% on completion of
concrete shell of the residence, 15%-20% on completion of installations,
10%-20% on delivery of the apartment and 10% with registration and
receiving of the title deed.
Q
A
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The final payment is often not until four-five months after completion. Clients
are allowed to furnish and live in the properties before they receive the deeds.
Since Albania Estate started selling Albanian property to internationals 5 years
ago , it has been possible to source the best independe nt lawyers and
recommend them to our clients.
There is no obligation for buyers to use our recommended lawyers and our
advice would always be to consider some sort of consultation with an
international lawyer in your own country in an advisory capacity.
You would expec t to pay from 600-2000 Euro for a quality English speaking
lawyer in Albania. Price is determined based on how many units you buy.
Further to our initial due diligence with a lawyer, in checking paperwork etc,
your lawyer would be your contact through the initial contract procedure up
until your first payment.
They would also be on hand to remind you when further payments are due and
to push for security of your title deeds after completion of the project. At
Albania Estate we will be using our own in house lawyer to verify papers before
passing onto the lawyers for final checking and stamps.
Q
A
How can I instruct a lawyer?
Appoint a lawyer
Await POA certificate to be sent via email
Sign certificate in front of notary in your own country and have the
POA apostilled.
Return POA certificate to your lawyer in Albania.
Receive by email draft of undertaking-contract.
Liaise with lawyer for any issues or clarifications & agree on the draft.
Await pre-contract signed by lawyer and developer.
Transfer first installment by bank transfer, with details supplied by
Albania Estate. Other installments will follow during
the construction period.
What is the process after the initial reservation fee is paid?
Q
A
Q
A
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Approx how much are communal charges?
Expect to pay around 150200 Euros a year for maintenance in the residenc es
without swimming pool. Then water, electricity, is paid based on
consumption and an average monthly bill could go approx 50 Euro, or 600
Euro per year if the apartment is used during 12 months.
Parking is a problem in Tirana and the coastal towns. Our advice at Albania
Estate would be to purchase if you can afford it. It will be money well spent as
an investment and will be an important commodity when selling or
renting. Prices will vary from 12,000 to 25,000 Euro in capital city Tirana;
10,000- 15,000 Euro in Durres and Vlora; and 7,000- 10,000 Euro in Saranda.
Is there a need for car parking?
Q
A
After residence is completed expect to pay 300-350 Euro for the contracts with
Electricity and Water companies.
On registration of apartment you will sign the Sale & Purchase Contract, and
at same time you will have to pay 4-5 Euro per 1m2 for the Registration Tax.
Should you decide to sell the property, there is a Selling Tax (similar to
capital gains tax) of 10% payable in Albania, on the difference between
purchase and sale. There is also a flat income tax of 10% on the rental
income, should you rent your property out.
Starting on January 2008 corporate tax was also reduced to a flat 10%, as is
income tax.
With all this in mind, your only extra fees in purchase will be real-estate ag
ents and lawyers. For total tax and financial advice, Albania Estate can
recommend certified accoun tants to help you through any questions you
may have in this respect.
What other costs do I need to be aware of?
Are there any guarantees from the developers?
Albania Estate is very particular in the developments that come onto the
market through themselves. All the paperwork is checked with our lawyer and
solicitor to be sure of legality and title. It is nearly always the case that that
developers will look to raise finance from the financial institutions, which will
themselves cross check the credibility and finance of the developer. This
package gives the comfort of security to all our investors at Albania Estate.
In the past few years, Albania has made
clear progress in a number of areas
necessary to allow the smooth running
of real estate finance and real estate
transac tions.
The lending environment is greatly
improved. Although limited by
numerous factors discussed above,
mortgage lending even in the actual
context is underway, as well as
consumer lending for housing purposes .
Overall, there is a growing awareness
among the government of the impor-
tance of the real estate sec tor and the
need to push reforms to solidify and
improve its legal and administrative
framework.
Foreign investors have just started to
chase the emerging Albanian real estate
market in fear of missing out on the
last European newcomer. Opening the
country to international investors is
desirable for increasing transparency
and building up expertise. Foreign
capital is also important as additional
source of finance.
An encouraging factor in favor of rising
standards in the Albanian markets
over the next years is the anticipation
of continuing GDP and consumer
expenditure growth compared with
the EU recession. The economic knock-
on effect will benefit real estate growth,
investment opportunities and
development prospects.
The growth of the economy, the price
stability with a low inflation rate of 2.5%,
the favorable tax system, the increase in
urbanization, the demog raphics and the
Diaspora are determinant factors that
are likely to deliver a different profile of
performance to that in Western markets.
NATO membership, bright prospec ts
for EU membership, a better political
climate, the developing economy and
moving real estate prices Albania has it
all. Enthusiasm from local investors has
been substantial and interest from inter-
national investors is just emerging. The
real estate market in Albania currently
offers specific opportunities and looks
set to do so for the foreseeable futur e.
Immaculate beach in Porto Palermo Vlora
Conclusion
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For further details on how we can
supply you with more information on
outstanding investment opportunities,
please contact us:
Tirana Office - Headquarters
Ilir Dardha - Albania Director
Cell: +355 6720 84393
ilir@Albania-Estate.com
USA and Canada
Cape of Rodon Durres
Sam Dardha - Executive Director
Cell: +00 1 414 852 5513
Email: Info@Albania-Estate.com
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Your Gate to Investing in Albania

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