E fundit!

22:51 TODAY

Businessman Artur Shehu breaks his silence: I am a long-time land owner in Zvërnec, I don't know the investors at all

Albanian businessman Artur Shehu spoke on the Opinion show...

How the drug trade in London is distorting the economy and property prices/ English media article about the phenomenon in Albania

2023-11-23 11:20:00, Aktualitet CNA

How the drug trade in London is distorting the economy and property prices/

Illustrative photo

The English newspaper "Daily Ekspres" has recently published an article, where it is emphasized that the money earned by London drug dealers is distorting the Albanian economy and causing property prices in the Balkan country to increase greatly, making it impossible for Albanian citizens with salaries of 300 pounds per month to buy a house.

In the article, chartered accountant Armand Mala points out that in recent years the construction sector has been a good way for criminals to invest.

The article points out that journalists have heard stories from locals about how young people who had traveled to London to work on cannabis farms had invested hundreds of thousands of their earnings in property.

Full text:

Money made by London drug dealers is distorting the Albanian economy and causing property prices in the Balkan country to spiral, according to a leading local economist.

Chartered accountant Armand Mala told the Daily Express that the country's housing boom was being exploited by criminals due to a lack of regulation.

"The construction sector has been a good way for criminals to invest because you prove the source of a small amount of money when you buy a property. The rest can be paid in cash without giving a reason as to where [the individual] got it. ", he expressed.

"So this has been a good solution for those who invest unearned money legally abroad. The market also helps with money laundering because, after a certain period, they can resell the property at a higher price and make a profit," he said.

During a reporting trip to Albania, the Daily Express saw how the former communist country is being transformed by new developments.

Numerous resorts are being built all over the Albanian Riviera and glittering new tower blocks are rapidly being added to Tirana's central skyline. We also heard many stories from locals about how young people who had traveled to London to work on cannabis farms had invested the hundreds of thousands they earned in property.

However, Mala said that because of the many ways money can move online these days, it was difficult to gauge the exact extent to which this was driving the boom. He believes foreign money is a factor as evidenced by the many empty homes in new developments.

One aspect that is felt by average Albanians is the increase in housing prices. Last year, the cost of property in Albania increased by an incredible 39%.

Surprisingly in a country where the average salary is just £300 a month, the dream of owning a home is out of reach for many.

"The prices are too high compared to our standard of living. To do such a thing is impossible or at least very, very difficult for someone who earns a local salary," said Mala./ CNA