April 2009
This week, the last bank offering financing for foreigners to buy property in Albania – Raiffeisen Bank, have announced that their products are now officially on-hold.
This is a shame for investors looking to buy and obtain leveraging.
Previously First Investment Bank also offered mortgages, but due to the global credit crisis, they put their products on-hold in January 2009.
There are mixed opinions about the effect of the global credit crunch on Albania, but now the effects are truly being felt:
- No mortgages for foreigners
- Tightened criteria for Albanians borrowing
- Real Estate sales have slowed dramatically
- Small businesses are closing
- Remittances from Albanians abroad have decreased
- Construction has slowed as institutional investors re-check their funds
Albania was forecast to have growth of 4% for 2009, the highest in the Balkan region. And recent figures and announcements indicate Albania may not fall into recession. But there is no denying that the credit crunch HAS arrived.
The government still annouce that there is no effect on Albania, but this simply isnt true. The best thing the government can do now is ackowledge the crisis has arrived, and create and implement a plan for dealing with the current events. The crisis looks set to roll into 2010 and possibly 2011.
The best thing businesses can do, is work together, and help each other, to keep things going.
And the best thing investors can do is BUY NOW. Business or property in Albania still represents amazing value, potential and returns. The country is being regenerated through airport and port expansions and modernisations, road improvements, new hospitals and shopping centres.
Sellers and developers, with financial obligations to the banks, may be now willing to negotiate a little. Rents are still holding strong, and the tourism industry in Albania looks set to boom.
For more on Albania please visit:
- http://fionasblog-freshpropertyco.blogspot.com/
- http://albanianbusinessnetwork.blogspot.com/
- http://twitter.com/propertyalbania
- http://twitter.com/albaniabusiness
- http://www.facebook.com/pages/Tirana-Albania/Fresh-Property-Albania/47989401628
- http://www.facebook.com/pages/Tirana-Albania/Albanian-Business-Network/60521222846
- http://www.linkedin.com/groups?gid=1779361
ADDITIONAL NOTE:
If anybody knows of any banks still willing to lend to foreigners buying property in Albania, please let me know.
