24 October 2007

If anyone has seen this week’s The Economist, there is an excellent article on Brazil on page 66 called “Highway to Somewhere”.

Basically, this month, private companies have been bidding to maintain and improve 2,600km (1,600m) of roads in Brazil.

OHL, a Spanish company, won 5 out of the 7 contracts and will invest 3-4 billion reals (US$1.6-2.2 billion) on toll roads running from Sao Paulo north to Belo Horizonte and south to Curitiba and Florianopolis.

Also, at the start of the year President Lula revealed impressive plans to increase public investment in infrastructure over the next 3 years.

We shall wait and see…..

The road improvement will certainly influence property prices in Florianopolis (2 bed beach front apartments from £70,000).

http://www.economist.com/

Florianopolis:

What have the press said about Albania?

“The country has a balmy southern Mediterranean climate, miles after miles of undeveloped beaches and crystal-clear water, and some of the lowest house prices in Europe: In short, everything to give it the potential to become the next stop for the intrepid property investor”  The Sunday Times

“Tirana is really about soaking up the atmosphere of a fast paced city reinventing itself before your eyes. Tour operators are taking an interest. Do they know something we don’t” The Observer

Great Climate conditions:

Albania is located south of Montenegro, North of Greece and West of FYR of Macedonia and has a population of about 3 million inhabitants.  It has a Mediterranean climate with over 350 days of sun.

New attractive legislation:

A recent change in Albanian tax law has seen Corporation Tax reduced to a flat 10% which has been matched by Income Tax also being reduced to 10%!  This will encourage economic growth and boost foreign investment into the country. In addition, this and other measures will help fight the informal economy and improve further economic indicators.

Macroeconomic indicators:

The Albanian economy is estimated to have grown by 5% in 2006, supported by buoyant domestic demand. This, in turn, was underpinned by a continued rapid expansion of bank credit, a surge in public investment late in the year and strong export growth. Data for industrial sales and machinery imports point to strong domestic demand in the first quarter of 2007, while exports also rose rapidly.

GDP is expected to accelerate in growth in 2008, to 6%, on the back of strong domestic demand and an increase in public investment. However, there are significant downside risks to this forecast, related to the possibility that Albania will continue to suffer from severe power shortages throughout the forecast period.

The Albanian currency, the Lek, will continue to be supported in 2007-08 by large inflows of foreign currency from Albanians living abroad, as well as by relatively high interest rates on local-currency deposits. The Lek will follow the Euro more closely than it does the US dollar, reflecting the fact that Albania conducts most of its trade with Euro zone countries. We forecast that the Euro will strengthen against the US dollar over the forecast period, to an average of US$1.35:1 in 2007 and US$1.38:1 in 2008. We therefore expect the Lek to appreciate in nominal terms against the US currency, especially in the first half of the forecast period.

Higher import costs will be only slightly mitigated by the forecast appreciation of the Lek against the US dollar and a resumption of the increase in the current transfers’ surplus, as remittances from abroad rise modestly. We now forecast a current-account deficit in 2007 equivalent to 8.5% of GDP, up from 7.4% of GDP previously. We forecast a slightly smaller deficit relative to GDP in 2008, although the outturn will depend heavily on developments in the power sector. (Source: 2007 Economist Intelligence Unit)

Property Growth, for the period 1993 through to 2006 stood at 400%. 2006 growth rates stood at 17%.  This trend is expected to continue, the country still lacks quality affordable housing, and wages are growing as is the middle class. (Source: INSTAT, 360 Degrees)

How does Tirana compare to other capital cities in Eastern and Central Europe?

*Property Investor News, March 2007, **Albanian Partner, *** Year on Year growth 2006

As can be seen above Tirana has the lowest price per square metre in the region due to the country being at the early stages of its economic development.

All the above translates into one simple sentence: Albania now is the place that offers more opportunity and higher capital gains for those that decide to invest in the property market. As infrastructure further improves and its plans to attract tourists come to light, the property market can only strengthen and increase in value.

To view our current developments, please click here.

For assistance with finding your investment property to meet your needs in Albania, please contact us:

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20 October 2007

We have launched for sale fantastic 1st phase apartments in “Saranda Vista”.

1 BEDS FROM €30,719 (£21,400) – 2 BEDS €57,200 (approx £39,900)!

Saranda is already a busy holiday resort and port, and in the months of June to August finding accommodation is very difficult.  But Saranda is only just being discovered by Western Europe, UK and Ireland.  With a cloud of misconception still hanging over Albania, due to their previous economic and infrastructure issues, the true beauty of Albania is still greatly undervalued by investors.

Currently across from the bay, property prices in Corfu are already quite high with sea view apartments from €2,500/sqm.

But with a new highway under construction to Saranda, easing transfers from the capital Tirana, and only 25 minutes on the Hydro-foil from Corfu, prices in Saranda are starting to rise.

So what’s so special about Saranda really?  What will make the prices continue to grow?

BEACHES

There are beautiful beaches in Ksamil, Manastir, Sarande, Kokome, Bunec, Borsh, Lukove. The water is so clear you can see the bottom.

DAYTRIPS

Other than the beaches, holiday makers can do day trips to the ancient UNESCO city of Butrint, or the museum city of Gjirokaster, or to the Greek Island of Corfu.

CLIMATE

Saranda is suitable for swimming from May, up until September, and sometimes even October.  In these months the daily temperate is at least 25 degrees.

AFFORDABLE PROPERTY

2 years ago, property in Saranda was around €500/sqm.  Even though prices have risen, and they start from €650/sqm, this still makes Saranda one of the cheapest holiday towns in Europe.

HOT MARKET

Local Albanians and non-resident Albanians working abroad have been buying up property in Saranda as fast as they can, mostly as second and holiday homes.  Local demand has been the main driver for the current price growth, and will continue to influence.  This is what makes Saranda such a great market.  Developments tend to sell out even as the foundations are being laid, meaning foreign investors wanting to get a foot in this current hotspot have to move quickly.

The Development:

Saranda Vista Apartments will be located in an excellent position in Saranda, allowing all apartments a sea view.  There are 3 apartments sizes available – 54.96sqm 1 bed for €35,724 (approx £25,000), 47.26sqm 1 bed for €30,719 (approx £21,400), and 88sqm 2 beds for €57,200 (approx £39,900).

With completion 18 – 24 months away, there is plenty of room for capital growth during construction.

LINK: Albania Tourism – Saranda Page

To find out more about Saranda Vista Apartments please request the brochure from us:

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 by international market expert – Fiona Bosticky 

 As a property investor, you have no doubt been following the recent market events – regarding interest rates, bank mortgages including the affect of the US sub-prime mortgage crisis, and the stock market volatility.

Current events are causing investors to look carefully at markets and country economies heavily reliant on bank financing, to make sure they have buffers within their current investments in case of future interest rate increases, and to take a more macroeconomic approach to investing.

UK property prices have seen excellent increases over the past 7 – 10 years.  The quietness of the market in the 90’s, and following the dot-com crisis in the early millennium, bricks and mortar have been seen as the only way to go.

As homeowners over the past 2 – 3 years have taken their UK profits away from the traditional overseas markets of France and Spain, they have branched out to “emerging markets” of Bulgaria, Romania, Poland, Morocco and the Baltics.  These markets have seen amazing growth and investors have seen amazing returns.  Now they want to be part of the next “boom” and global hotspot.

However, property investors are now more savvy than ever.  Not just considering the price of a property overseas, but tracking FDI (foreign direct investment), watching where airlines will fly next, and staying on top of important issues like correct title and planning permission.  Especially considering some of the debacles in Spain.

Our research has led us to three markets which will become the talk of 2008: Argentina, Brazil and Albania.  All three countries have had problems in the past, but now all three governments are taking the necessary steps to resolve these.  Also, all three countries have under-valued property, but to find the best deals you need to look in the right location, where there is local as well as foreign demand.

Today, some investors are saying “I wish I’d bought in Bulgaria 5 years ago”.  In 5 years time, where will you wish you bought?

If you are thinking of an investment property in Argentina, Brazil or the Albania , please email us or call us on 0208 820 0 820:

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