7 Pitfalls When Buying Property in Albania

Albania, with its stunning Mediterranean coastline and charming landscapes, is becoming a hotspot for property investment. The country’s rich cultural heritage and the growing hype around its real estate market make it an enticing destination for investors and expatriates seeking a slice of Mediterranean paradise. Let’s analyse six pitfalls when buying property in Albania.

Buying Property in Albania As a Foreigner

As a foreigner, buying property in Albania is largely permitted, excluding land (see below for more details). Despite this, we strongly advise involving professionals in the process. They can guide you and help avoid expensive blunders. The following sections will delve into these potential pitfalls.

Navigating Legal Documentation for Albanian Properties

Properties with multiple owners can be particularly challenging in Albania. The absence of digital records can result in incomplete or confused ownership records. It’s not uncommon to find several owners registered for one property, creating legal ambiguities that can be difficult to resolve.

Ownership of Albanian Property After The End of Communism

After 1991, Albania underwent significant political and economic changes, affecting property records. When proving ownership post-1991, be mindful that certain documents may not be recognised or may be overridden by more recent records, such as those issued after the land redistribution in 1992.

Avoiding Purchasing A “Double Sold” Property

Developments sometimes sell the same apartment multiple times, which can lead to financial and legal problems if the developer disappears or goes bankrupt. Prior to purchase, carefully check the developer’s reputation and solvency to avoid falling victim to such schemes.

Considerations When Buying Land in Albania

Acquiring a plot of land in Albania comes with its own set of challenges. It’s crucial to determine whether the land is zoned for agricultural use or if it can be developed (either for commercial or residential use). Changing the land use can be an intricate, costly, and sometimes impossible process. As a foreigner, purchasing land is a tricky task in itself. Be well advised by a lawyer before attempting to purchase land in Albania.

Heritage Property Considerations

Properties listed as heritage sites, such as those protected by UNESCO, come with specific restrictions and responsibilities. Ensure you understand these limitations before committing to a purchase, as they can impact your ability to modify or use the property, let alone demolish and rebuild it.

Furthermore, particular conditions may be set by the authorities as to how a property has to be renovated – including the use of particular materials and processes, for instance -, which likely would result in extra costs.

Historical Title Conflicts

Albania’s history, including the Communist regime, has left a legacy of complex property titles. Documents from before the regime are sometimes used as proof of title. However, titles from 1944 may conflict with those issued in 1992, with the latter typically taking precedence.

Watch Out For Artificially Inflated Property Prices

Certain agents of doubtful integrity have occasionally been identified advertising properties from other agencies or direct-from-owner listings at inflated prices. A property initially marketed at EUR 50,000, for example, might be dishonestly listed by such an agent for EUR 70,000 or more, aiming to pocket a portion of the difference. Do your own research and exercise increased caution when engaging with agents of questionable reputation.

Expert Guidance Can Help With Mitigating Risks

To mitigate these risks, it is advisable to enlist the services of a reputable local lawyer who specialises in property law. Additionally, MagicTowns.al provides resources that can guide you through the nuances of the Albanian property market.

Conclusion

While not meaning to put you off buying property in Albania (which can be an attractive investment), it is important to be aware of issues and pitfalls. With careful due diligence and the right guidance, you can avoid common issues. MagicTowns is dedicated to simplifying the process of relocation and investment in Albania, and we encourage you to utilise our resources for further assistance.

Further Reading

• The Essential Visa And Residency Permit Guide
• Moving To Albania. A Guide For US Expats
• Albania’s Airports, Ferries and Road Connections