The fall of communism and the creation of market economies in Eastern and Central Europe has created vast real-estate opportunities.
By JOHN BENZAQUENalbania apartment 88 224(photo credit: Courtesy)
Albania may soon become the new mecca for Israeli real-estate developers. Over the past 10 years, Eastern and Central Europe has become the playground of local real-estate operators who have promoted real-estate projects in most of the countries behind the former iron curtain.
The fall of communism and the creation of market economies in these areas has created vast real-estate opportunities, and local companies have not fallen behind in taking advantage of them.
Now the spotlight is on Albania.
"We are very keen on attracting foreign investments, and we are especially interested in attracting Israeli foreign investors," Albanian Ambassador to Israel Tonin Gjuraj recently told The Jerusalem Post. "We want to develop real estate so as to construct better housing for our citizens and hotels for the tourists who are flocking to visit Albania. We are interested in attracting foreign capital to develop our chrome and nickel mines, our petroleum resources and our infrastructure."
Tourism in Albania is growing rapidly, with two million tourists last year. Visitors are flocking to Albania because it has stunning beaches and scenery, and it is inexpensive.
Underdeveloped opportunity
One of the reasons Albania is such a bonanza for investors is because it was the most backward country in Europe and is still underdeveloped. Albania was ruled by Enver Hoxha, a hard-line Maoist Communist, from the end of World War II until 1985. It was isolated from the rest of Europe, including its neighbors, Yugoslavia and Greece.
But Albania is now trying to catch up. To do so, it needs a large influx of foreign capital; its 3.5 million citizens cannot do it alone. The government has instituted a fiscal and regulatory regime that is favorable to investors, and Israeli real-estate operators are taking advantage of the opportunities.
Koby Dayan, general manager of Adal Holdings, is optimistic about Albania's economic prospects. His company might be the biggest Israeli real-estate investor in Albania.
"The attractions of Albania for Israeli investors are because it is so underdeveloped and also because it is relatively near," he told the Post. "Its very close relations with Italy are also important.
"To the best of my knowledge, [other] Israeli companies are involved in infrastructure projects, in the energy business, in mining and, of course, in real estate. Adal in Albania is only involved in real estate."
Adal is constantly attracting new partners and investors for its projects in Albania, Dayan said. In the port town of Vlorë, or Valona, it is building, in partnership with Israeli businessman Gabi Vanuno and others, a 250-room hotel. When completed, it will be leased to one of the leading international hotel chains, he said. This group of investors is also involved in building approximately 1,000 holiday homes in a 55,000-square-meter area near Vlorë, he added.
The group, together with Israel's Ashtrom Corporation, has made an offer to upgrade and deepen the port of Vlorë, which was built by the Italians.
Adal is also involved in building projects in Tiranë, the capital. It has an option to buy a large plot of land in one of the best areas near the new Sheraton Hotel and the presidential palace. It will be used to construct a 49-story building that will be the tallest structure in Albania. The tower will be triangular in form: one side will have offices; another a hotel; the third side, luxury apartments. A shopping mall will be located on the ground floor.
Adal is also trying to organize a group of investors for a vast tourism complex and a large residential-commercial project, Dayan said.
if(catID != 151){
var cont = `Take Israel home with the new Jerusalem Post Store
