Citypark experiences success as leasing advances (AL) Tuesday 10 March 2009 | ||||
| Colliers International has recently secured a number of retailers who will be entering the Citypark shopping center. | ||||
| These tenants have continued their plans for expansion in regards to the Albanian market as they recognize the value of Citypark and the impact it will have on Tirana’s retail market. Several important brand names will be leasing retail space at Citypark including major anchors Euronics, Mercator, and Intersport. Other retailers who have signed with Citypark are United Colors of Benetton, Sisley, Calvin Klein, Lacoste, Cacharel, Toi & Moi, Societta, Altin Bas, Primo Emporio, Versace Home, and the children’s brands One2Play and Chicco. |
Berlusconi comes with billions of Euros
09 December 2008
Italian Prime Minister Silvio Berlusconi visited Albania while on a one-day trip on Tuesday during which agreements were signed for projects worth more than 2 billion Euros.
Among the projects agreed to were construction of a re-gasification plant in Fieri district, 62 miles, (100 kilometers) south of Tirana, to be operated by the Italian Campobasso-based group Falcione. Also, the Agrigento-based Moncada Energy Group S.r.l. will construct a large wind farm on the Karaburun peninsula 93 miles (150 kilometers) south-west of Tirana.
The regasification plant will cost 800 million Euros and will process liquid gas and also produce energy to be sold on the international market.
The wind farm is also a major project, expected to cost 1.2 billion Euros, including an underwater interconnection power line. It will produce 500 MGWs of power.
These mega projects, and others being planned, will supply all of Albania’s energy needs and also turn it into a regional energy source.
Albania and the Global Economic Crisis
10 October 2008
Our inbox is full at the moment of emails from our clients and prospective clients all asking one question-
“How is Albania being affected by the financial breakdown shaking US, UK, Europe?”
My first response is – just remember – the press are reporting on the very worst and paying little attention to all things good and profitable in the world at the moment.
My second response is – it’s important to remember, that the markets most affected by these events are highly leveraged, highly mortgaged markets relying on borrowed money or financial products tied to borrowed money.
Now, looking at Albania, of course there are some links from Albanian banks to banks in Italy, Greece, Austria and Bulgaria, which are linked to major banks including US banks. However, being banks in an emerging market like Albania, most have done due diligence and have been proceeding very carefully. Does this make the banks or the Albanian economy immune? Definitely not.
There will be some fall-on effect and most likely a tightening in lending personal and mortgage finance at the riskier end of the scale – to foreigners.
But luckily the housing market is a low cost, cash financed market at the moment. Current resales and most offplan projects are correctly priced and relative to demand, and prices will continue to rise.
An example of this is a project we have been marketing – Kashar View Apartments in Kashar, Tirana. During the crisis in August, the developer was selling up to 20 apartments a day to locals, with some locals buying more than one apartment. Now 80% of the project is sold out.
Why is this? Well Albania’s economy is doing very well, and the locals are aware of this. Tirana, the capital city, is changing on a weekly basis. In the lead up to the next election, the government is extremely busy – improving roads and services, new schools are being constructed, a new huge hospital is under construction in Kashar, and buildings continue to be painted a variety of creative colours. The masterplan for the city will see an amazing new ring road being constructed which will improve access and traffic flow enormously. And some construction teams improving the roads are currently working through the day and night.
More information on Albania’s economy coming soon…
Unlike other countries in Eastern Europe or the Balkans, Albania’s population will continue to rise. As the economy improves, new companies set up offices and branches, and Albanians will return from abroad to take advantage. So the property market will continue to grow under this demand.
Also as a holiday destination, this is one of Albania’s greatest untapped resources. 2008 was one of the busiest summer’s ever, with accommodation and facilities being pushed to their limit on the coast – Saranda, Vlora and Durres.
Experts believe the increased numbers had to do with many reasons including Albania being incredibly affordable as a beach destination, compared to neighbouring Greece, Montenegro or Italy. And of course this demand will mean hotel rates will continue to rise, seen by the increase of up to 30% this summer. Meaning demand for apartments will be greater than ever.
Anyhow, back to the banks, who only continue to generate huge incomes in Albania. They do this through ways we take for granted in the UK and Europe. They are charging:
· transfer fees to transfer funds from bank account to bank account
· for new services, like e-banking
· for account keeping fees
And the mortgages currently offered, are safely above the Euribor rate, as an extra buffer.
In summary, Albania will continue to growth, despite world events. The population is going up, wages are going up, unemployment is going down, company taxes are very low, infrastructure is improving, FDI is going up and the scenery and coastline is just stunning.
If a property investor waits for the global economic crisis to settle, they may just miss out on the best property investment opportunities in Europe.
Albania grows towards the mainstream
In times of economic turmoil in many countries, Albania, once the most isolated and desperately poor nation in Europe, is showing robust growth and attracting attention from foreign investors.
A modern airport opened in 2007 and in the capital Tirana, Bang & Olufsen sells expensive audio and video products to prosperous Albanians, albeit a few blocks from the main squares where pavement tiles are still cracked.
Economists including the International Monetary Fund expect GDP growth of at least six percent this year, which would be among the highest in eastern Europe, if the country can avoid the chronic power shortages that have hampered it in the past.
In June, the former Stalinist Balkan country of 3.3 million moved up to a “middle income” country from low income in World Bank classifications, receiving an invitation this year to join NATO. It expects to apply for EU membership next year.
A World Bank study this month rated Albania as best in the Balkans and among the world’s top 10 countries for easing business regulations.
“Three years ago, although there has been growth and macroeconomic stability, still the country was really not at all preferred by foreign investors,” Prime Minister Sali Berisha told Reuters in an interview earlier this month.
In his post since September 2005, he says he has fought corruption, lowered taxes, reduced the size of government and introduced a series of business-friendly laws.
Construction is key.
The government has made building a road linking Albania’s main port of Durres and Kosovo its top priority although the 600 million euro artery has stretched its resources. Berisha says it will integrate Albania’s agriculture with Kosovo’s, help trade and tourism, and revive the poor north.
Italy’s power utility Enel wants to build a coal-fired power station and is looking into nuclear opportunities. Austria’s EVN is about to clinch a 1 billion euro ($1.39 billion) deal to build hydropower plants. Greek and Spanish firms are building cement factories. The British want to build ports.
In another sign Albania is keen to work with global institutions, finance ministry officials say it plans its first Eurobond later this month, for 250-300 million euros. “We want Albania to be listed on the euro markets, in the financial markets,” said Deputy Finance Minister Sherefedin Shehu
Albania among top 10 reformers globally in economy
Albania ranked second among countries which undertook reforms during 2007-08 to make doing business easier, according to Doing Business 2009—the sixth report in an annual series published by the World Bank and IFC. In four of the 10 areas assessed by the report between June 2007 and June 2008, Albania saw key reforms that have simplified and eased regulations. Its overall rank on the ease of doing business index climbed to 86 from 135, putting Albania on par with other countries in the sub-region.
Albania made getting credit easier by establishing a public credit registry, and strengthened investor and shareholder protections with a new company law. Starting a business has become easier with the consolidation of several procedures under the National Registration Center and a reduction in registration fees.
Other reforms that are recognized by the report include the reduction in corporate tax rates from 20 percent to 10 percent and the introduction of e-filing of corporate taxes for large businesses.
| Radical Slash Of Social Insurance Tax Macedonians Invade Albanian Beaches TIRANA, Aug 14 – According to the last expectations from the travel agencies and local authorities more than 200,000 Macedonian visitors are expected to pass their summer vacations in the Albanians beaches this summer. |
Albania poised for a property boom
Friday, August 08, 2008
Are the economic ingredients a recipe for investment success in this fledgling property market?
Albania is a relatively young hopeful among Europe's emerging property markets. The country, which only broke free from communist rule in 1992, has been working hard to make itself an attractive destination for overseas property investors. Infrastructure improvements, approval for membership of NATO and the EU, no restrictions for foreign buyers and a flat tax rate of 10% are all adding up to a prospective investment location that is worth monitoring over the next few years. Regional Director of Colliers International Southeast Europe, Philip Bay, said, "We have actually been operating here for many years. "We are very confident that Albania has a bright future and can look forward to sustainable growth. "The country is at an early state of real estate development and will become an attractive market in three to five years," Mr. Bay added.
Economic growth
Albania's economic growth during 2007 was around 6%. In the same year, the government approved a fiscal package which ticks all of the right boxes for investors. It included a flat rate of 10% on personal income tax, corporate tax and capital gains tax and no VAT on property purchases with foreigners allowed to own 100% of Albanian companies. In addition, the country has some of the cheapest property prices in Europe, with annual price growth of around 30% year-on-year in the capital, Tirana and coastal regions, indicating all the right ingredients of a newly emerging property market on the cusp of a boom.
Infrastructure
Albania is currently making major infrastructure improvements with the help of loans totaling more than £90 million from the Japanese and Austrian governments. The money is being used to make a broad sweep of improvements which will include upgrading the main Albanian port of Durres - 35km from Tirana and an important link to the country's Balkan, Black Sea and EU neighbours.
International airport
Tirana International Airport was upgraded in 2007 when improvements included a new terminal building and airport access roads. The airport now has a capacity of around 1.5 million passengers and offers direct flights to and from London, New York and a range of European cities, attracting tourist and foreign investors from around the world. Market Analyst at Obelisk, James Gonzalez, highlights the increasing amount of foreign investment in Albania as a major indicator for the growth of its property market. "Within the last five years, the number of commercial buildings springing up on the main road which runs between the airport and the city of Tirana has grown considerably and companies such as Hewlett-Packard, Peugeot, Citroen have moved in. "Vodafone have been in Albania since 2001 and earlier this year announced that it was expanding operations there. I think this is definitely one to watch," Mr. Gonzalez added.
To find out more about Obelisk, call free on 0808 160 0670 (UK) or 1800 932 514 (IRE), or visit www.obeliskinternational.com.