The hit to the real estate market in Dubai, due to attacks in the Middle East, is turning into a new opportunity for Albanian coastal areas, especially for Vlora and Saranda.
According to real estate agent Eron Çumani, many international investors who previously used Dubai to purchase property are now heading to Albania, seeing here a safer alternative with potential growth.
“All the capital that is placed, whether formally or informally, is often invested in real estate. In Dubai, after the war in the Middle East began, 30 to 70% of properties have lost value,” says Çumani. He emphasizes that Albania is not exposed to conflicts or wars, and for this reason, many foreign investors who used to invest in Dubai are considering the Albanian Riviera as a new destination for their investments.
"The initial phase of interest is already emerging, with some companies that were buying properties in Dubai considering the possibility of investing in villas and apartments in Albania, with the aim of returning capital through rental or increasing the value of the properties. This trend is expected to increase demand and gradually affect property prices in the premium coastal areas of the country."
How Dubai was hit by the war in the Middle East
Dubai became very attractive for real estate in recent years because it was perceived as a safe haven for international capital, with very low taxes, ease of doing business and a market that offered high rental returns and property value appreciation.
Reuters wrote that for decades, Dubai's strength has been its image as a stable country in a region of tensions, while investors were also attracted by its modern infrastructure and friendly climate towards foreign capital.
In recent years, this interest has been further fueled by high sales of properties under construction and the entry of foreign buyers seeking not only profit but also geographical diversification of their investments. For this reason, any blow to Dubai's perception as a "safe haven" has begun to push some of this capital towards alternative markets.
Recent developments suggest that Dubai's real estate market is going through a more complex phase than a linear decline. Reuters reported in March that the sector was showing the first signs of weakness, with transaction volumes in the UAE falling 37% year-on-year in the first 12 days of the month and 49% compared to February, while in some cases the market was seeing price cuts of 12% to 15% for quick sales.
According to the same report, the conflict has hit Dubai's image as a safe haven for international capital and increased the risk of a broader market correction, especially as there were already concerns that after five years of strong growth, the property cycle was entering a slowdown phase.
It is precisely in this climate of uncertainty that smaller, emerging markets, such as Vlora and Saranda, are gaining increased attention as alternative destinations for capital seeking high returns and lower exposure to regional tensions./Monitor
