(VIDEO)
Albania is a country situated in the south-eastern part of the continent of Europe with the population of about three and a half million. Its neighbours are Montenegro and Serbia in the north, Macedonia in the east and Greece in the south east. Moreover, the country has 362 km of coastline and stretches on the two seas: the Adriatic Sea and the Ionian Sea, across which in the distance of less than 100 km there is Italy, another large neighbour.
This is a country that has not yet been discovered for the majority and has unique, in many places hardly touched by human impact nature with mountains and sea and wonderful climate.
| Capital of the country | Tirana |
| Official language | Albanian |
| Area | 28748 km2 |
| Population | 3 600 000 |
| Density | 134 inhabitants/km2 |
| Ethnic structure | 95 % - Albanians, 3 % - Greeks, 2 % - other |
| Currency |
Lek |
With its coastline facing the Adriatic and Ionian seas, its highlands backed upon the elevated Balkan landmass, and the entire country lying at a latitude subject to a variety of weather patterns during the winter and summer seasons, Albania has a high number of climatic regions for so small an area. The coastal lowlands have typically Mediterranean weather; the highlands have a Mediterranean continental climate. In both the lowlands and the interior, the weather varies markedly from north to south.
The lowlands have mild winters, averaging about 7° C. Summer temperatures average 24° C, humidity is high, and the weather tends to be oppressively uncomfortable. In the southern lowlands, temperatures average about five degrees higher throughout the year. The difference is greater than five degrees during the summer and somewhat less during the winter.
Inland temperatures are affected more by differences in elevation than by latitude or any other factor. Low winter temperatures in the mountains are caused by the continental air mass that dominates the weather in Eastern Europe and the Balkans. Northerly and northeasterly winds blow much of the time. Average summer temperatures are lower than in the coastal areas and much lower at higher elevations, but daily fluctuations are greater. Daytime maximum temperatures in the interior basins and river valleys are very high, but the nights are almost always cool.
Average precipitation is heavy, a result of the convergence of the prevailing airflow from the Mediterranean Sea and the continental air mass. Because they usually meet at the point where the terrain rises, the heaviest rain falls in the central uplands. Vertical currents initiated when the Mediterranean air is uplifted also cause frequent thunderstorms. Many of these storms are accompanied by high local winds and torrential downpours.
When the continental air mass is weak, Mediterranean winds drop their moisture farther inland. When there is a dominant continental air mass, cold air spills onto the lowland areas, which occurs most frequently in the winter. Because the season's lower temperatures damage olive trees and citrus fruits, groves and orchards are restricted to sheltered places with southern and western exposures, even in areas with high average winter temperatures.
Lowland rainfall averages from 1,000 millimeters to more than 1,500 millimeters annually, with the higher levels in the north. Nearly 95 percent of the rain falls in the winter.
Rainfall in the upland mountain ranges is heavier. Adequate records are not available, and estimates vary widely, but annual averages are probably about 1,800 millimeters and are as high as 2,550 millimeters in some northern areas. The seasonal variation is not quite as great in the coastal area.
The higher inland mountains receive less precipitation then the intermediate uplands. Terrain differences cause wide local variations, but the seasonal distribution is the most consistent of any area.
ALBANIA COUNTRY IMAGE
If you come to visit Albania you will see how peaceful the Albanians are and that contrary to what most people believe it is a secure country with one of the lowest crime rate. Look at what is saying Lonely Planet Guide to Albania “This sunny slice of mountains and southern European easy living has been ground down by years of totalitarianism. But the new Albania packs a wild punch of traditional Mediterranean charm, delightfully hospitable people and a madly colorful art-driven renaissance in the capital, Tirana.” Furthermore, The New York Times newspaper has included Albania on its list of main holiday destinations for 2007. “The country offers a wealth of attractions, including sandy white Mediterranean beaches, rocky mountains, fertile plains, lakes, natural monuments and remote, pristine areas Ruins and archaeological treasures reflect a rich history dating back to the Illyrians”. The BBC World service is received and Radio France International program are also transmitted locally.
WHAT IS THE COST OF LIVING IN ALBANIA?
Transportation and Utilities are quite low. GSM and roaming are expensive. ADSL permanent Internet Access at 30€/month is acceptable. Groceries price are reasonably low considering that most of the products are import. Conad (Italy) and Euromax (Albania) are the two largest supermarkets. QTU on the highway Tirana Durres is the only shopping mall. Nevertheless foreigners living in Albania are used to say that going to restaurant is cheaper than cooking home! Good restaurants with Mediterranean cuisine are all over. Prices vary from the quality of the restaurants, but are generally between 7€ - 10$ per person.
WHAT IS THE SITUATION REGARDING HEALTHCARE?
There are a growing number of private clinics in Tirana, and many of the doctors speak English and are overseas educated. Foreigners do not have access to the domestic national health system unless working locally and making national insurance contributions. The standard of care in medical clinics is generally good. There are many drugstores with a good supply of drugs.
WHAT IS THE SITUATION REGARDING ENERGY?
Albania, an electricity exporter under communism, suffers from chronic shortage since Bulgaria, the region's main exporter, has cut exports by two-thirds after shutting two units at the Kozloduy nuclear plant as a condition of European Union accession. Sali Berisha, the prime minister, told the Financial Times: "We face an emergency. But there are short-term solutions on the way and there is tremendous international interest in investing in the energy sector.“ For example to cover short-term needs KeSH plans to install half-a dozen giant generators of 80MW, to supply Tirana and other cities. Projects worth about €3bn would be financed mainly by the private sector, with 25-year concessions offered to international investors to build and run about 1,000MW of new hydro capacity. In November 2007, Albania signed a €42m deal with Montenegro to build a new 400kV transmission line to enable imports to be increased and relieve pressure on the current 400kV line from Greece. Furthermore, the World Bank is already financing together with EBRD, EIB and KESH, a US$ 112 million oil-fuelled thermal power plant in Vlora, the largest investment in the energy sector. Albania is considered highly attractive on renewed industry interest, with plenty oil and gas resources.
IS THERE ANY TOURISM DEVELOPMENT INCENTIVES?
Incentives in the tourism sector were introduced in 1993 as part of the law “For Development of Tourism Zones”. Incentives are built around a special status created for tourism sector investors which are award by the Ministry of Tourism. Investors holding this status can:
• be exempted from the custom duties and excise taxes on imported goods.
• be exempted from profit tax for 5 years from the time of the completion of the development phase of theinvestment. This is a 10-year tax incentive as the final five- year period profit tax is levied at only half of thenormal rate.
• benefit from a reduction of profit tax up to 40%, if profits are reinvested in Albania.
The principal activities that are covered are construction, reconstruction, and improvements of existing facilities as well as the operation of hotels, motels, tourist villages, restaurants, shops, thermal baths and sport equipment.
ALBANIA ANT THE EUROPIAN UNION
Albania signed the SAA (Stabilization and Association Agreement) in June 2006. The SAA represents an important economic and political opportunity and marks the beginning of a new phase in the EU’s relations with Albania paving the way of EU membership in 2014. The Delegation of the European Commission inAlbania currently implanted an Interim Agreement offering an unlimited duty-free access to the EU market. In term of financial EU allocation the IPA (Instrument for Pre-accession Assistance) will provide a total amount of more than 11 billion euros over the period of 2007-2013! This will fund improvements of the infrastructure.
ALBANIA AND THE USA
With warmth and enthusiasm, Albanians welcomed U.S. President George W. Bush on June 10, 2007. President Bush was the first sitting US president to make an official visit to Albania. Bush’s visit was a clear sign that this country is amoderating factor that has played, and may continue to play, a significant role in the Balkan region. Albanians hail his arrival as both a great opportunity to show the world their image is different from what they often read or see in theinternational media.
ECONOMICAL SITUATION
The 2007 Transition report, held by EBRD appraised Albania a country in progress, with strong economic growth in several major sectors leading the development. Macro-economic performance of Albania is strong: Albania closed the first six months of the current year with a budget surplus of 83.93 million euro…World Bank and IFC in their fifth annual series report “Doing Business 2008” showed Albania an attractive place on aspects of business opportunities. Areas such as employing worker, registering property, enforcing contracts, paying taxes and trading across borders were better performed in Albania compared to other countries. Albania, which received in June 2007 a 'B1' rating from Moody's Investors Service, is performing well, record high economic growth, low inflation rate, raised foreign exchange reserves and foreign direct investments (FDIs) have increased; credit has grown which show the country is becomingincreasingly attractive for FDIs.
FOREIGN INVESTORS IN ALBANIA
Like India we have a new kind of visitor - the Real Estate Investment Tourist or REIT as we like to call the foreign private investors, family offices, Real Estate fund managers, Hedge funds and others looking to buy into the Albanian property market. Main investors arguments are:market price; climate; emergence of Tourism; large freehold seasidelands; non-resident mortgage; endless unspoiled beaches; strong capital gain potential; favorable taxes treatment; economic growth >5% = new middle class; urbanization; Diaspora returning; low cost of living; low labor costs; low inflation rate; efficient banking system; geographic location; NATO membership 2008; EU 2014, … Already large corporation notably US, Greek, German, Turkish, and Italian are in the country to reply to international tender and privatization in Energy and Water notably. The European Bank for Reconstruction and Development will allocate EUR 120 million fund to Albanian private sector in 2008. The Tirana International airport was won from privatization by Hochtief the German company which invested €50 million in a state of the art new terminal. Furthermore a massive improvement in Albania's transportation network -- improvements that will shrink travel times, make the country more accessible and maximize Albania's strategic ports is under way. The OPEC Fund ($15 million) and the World Bank ($25 million) financed the construction of the pivotal 170 km highway between Albania and Kosovo. The cost of the project is �?} EUR 500 million managed by a USTurkish consortium headed by Bechtel. In the mid-term the completion of the highway along the coast from Dubrovnik through to Saranda will transform the country. This is critical if Albania is to make the most of its incredible potential for tourism on its lengthy coast. Our aim is to provide our customers with a high level of personal service with a friendly and individual approach. Here is the perfect place to start searching for your property in Albania. This info pages cannot cover everything of course, so feel free to contact us.