EXCLUSIVE: A local economist has explained how funds made by London drug dealers are wreaking havoc with the Albanian economy.
12:02, Wed, Nov 22, 2023
The Daily Express
Albanian economist on drug trade wreaking havoc on economy
Cash earned by London drug dealers is distorting the Albanian economy and causing property prices in the Balkan nation to spiral, according to a leading local economist.
Chartered accountant Armand Mala told the Daily Express the nation’s housing boom was being exploited by criminals due to a lack of regulation.
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“The construction sector has been a good way to invest [for criminals because] you only prove the source of a small amount of money [when] buying a property,” he explained. “The rest can be paid in cash without giving a reason where [the individual] got it.
“So this has been a good solution for those who invest money not earned [in a legal] way abroad. [The market also helps with] money laundering because, after a certain period, they can resell the property with a higher price and gain a profit.”
During a reporting trip to Albania, the Daily Express saw how the former communist country is being transformed by new developments.
Sprawling resorts are being constructed across the Albanian Riviera and shimmering new tower blocks are being added to central Tirana’s skyline at pace.
Chartered Accountant Armand Mala told the Daily Express criminals were laundering money in property (Image: Jonathan Buckmaster)
We also heard many stories from locals about how young men who had travelled to London to work in cannabis farms had been investing the hundreds of thousands they earned in property.
However, Mala said due to the many ways money can be moved online these days it was difficult to estimate the precise extent this was fuelling this boom. He believes foreign money is a factor as evidenced by the many empty homes in new buildings.
One aspect being felt by average Albanians is the soaring house prices. Last year, the cost of properties in Albania increased an extraordinary 39%.
Unsurprisingly in a country where the average wage is just £300 per month, it’s put the dream of owning a home out of reach for many.
“The prices are very high compared to our standard of living,” Mala continued. “Doing so is impossible or at least very, very difficult for someone who [earns a local] salary.
A building site for a new resort on the Albanian Riviera takes shape
Huge new resorts are being constructed across the stunning Riviera in the South of the country (Image: Jonathan Buckmaster)
“Initially, it was markets like Greece and Italy and then, in recent years, the map is expanded, especially with Great Britain.”
Mala said he believes the dramatic 2022 increase in illegal migration by Albanians to the UK, when 2% of the male population made the treacherous Channel crossing, had been in part driven by social media.
“It was promoted on social media, people were thinking that going [to Britain] would resolve [their issues]. But now we have many other cases where people returned back from United Kingdom who realised that it's not a place of miracles,” Mala said.
This was one of the factors that led the economist to believe migration from Albania would decline in the coming years.
He said: “Especially considering the massive emigration in the last three years, I think it is coming to a peak. So probably after this it will stop and in the long term, there won’t be such a big difference anymore. Whoever wanted to leave us has already left.”
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