Albanians have increased their investments in real estate not only within the country, but also abroad in recent years.

According to official Eurostat data on Foreign Direct Investment positions, the stock of investments that Albanian residents own in properties abroad has reached a record value with a stock of 766.5 million euros at the end of 2023.

As can be seen from the data in the table below, the flow was very high in 2023 at 760 million euros, since until 2022, the stock of Albanians' investments in real estate abroad was only 6.5 million euros, according to Eurostat.

Data shows that Albanians have sent around 760 million euros abroad for property purchases, a value equivalent to 2.5% of the country's GDP. This figure indicates a high accumulation of capital in the hands of Albanian individuals and companies, who are moving their wealth abroad.

Compared to the countries in the region, Albania presents a completely different and much more aggressive profile in relation to investments abroad. North Macedonia reports modest figures that do not exceed 3 million euros, and countries like Serbia or Montenegro do not have published data.

This expansion raises questions about the sources of this liquidity and the reasons that are pushing Albanian investors to move abroad, as the domestic market is in a price boom phase.

Market experts claim that there is a real wave where wealthy individuals are buying properties or vacation homes in countries like Greece, Italy or Spain, driven by the favorable euro exchange rate and clearer property rules. It is also learned that the improvement of the methodology by the Bank of Albania and the increase in information exchange play a role.

Also, the increase in property prices in our country, especially in Tirana, has exceeded the average price levels in some areas of the Mediterranean, increasingly pushing domestic capital abroad.

If an apartment in Tirana costs about the same as an apartment in a European city, many buyers choose the latter, seeing it as an investment with a better return on rent.

Also, large Albanian business groups have purchased important assets abroad, such as hotels, resorts or office buildings.

If an Albanian company purchases such a property in its own name, the entire value is recorded as an outbound investment. Properties abroad offer greater legal security and protection from possible fluctuations in our economy./ Monitor