ALBANIA AND BULGARIA
The southeastern European countries of Albania and Bulgaria are emerging as two luxury markets to watch. Both stable, parliamentary democracies and NATO members, the countries shed their “gray zone” reputation under communist rule decades ago – and are now poised for rapid luxury real estate growth. Set along the Mediterranean Sea just north of Greece, Albania has attracted a steadily increasing cadre of tourists, investors and developers in recent years, enticed by its pristine beaches, rugged mountains, welcoming culture and stable economic and political climate. “Albania’s real estate market is seeing significant growth in both supply and demand driven by both local and foreign interest, from around Europe and overseas,” says Kris Maranda, managing partner at The Maranda Real Estate Group, the Christie’s International Real Estate affiliate in the country. “With its beautiful landscape and current market conditions, Albania is set to be the next luxury hub in southeast Europe.” The United Nations World Tourism Organization recently ranked Albania as the fastest growing tourist destination in Europe. Developers have also taken notice, with a raft of new development projects underway in the country, including Grand Park Skyline, a luxurious residential tower in the capital city of Tirana, and Farka Lakefront, about six miles southeast. Additional high-end development is taking place on the country’s southwestern coast, along the Albanian Riviera. Folie Village, a new luxury waterfront community exclusively represented by the Maranda Real Estate Group, is scheduled for completion in 2026, while Affinity Partners, the private equity firm headed by Jared Kushner, has plans to redevelop a former military base, Sazan Island, into a luxury Aman-branded eco-resort. For investors seeking high returns on minimal expenditure, Albania’s tax incentives, streamlined procedures for property acquisition, low residential property tax (.05%), and reasonable capital gains tax make the country an attractive option. Affordability advantage over Greece, on Albania’s southern border, and Montenegro, its neighbor to the north, is driving savvy investors to look at Albania, especially as tourists continue to flock to the country. Buyers can expect annual property appreciation rates of 6-7%, according to Maranda.
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