Construction rules change in Albania: What investors, developers, and buyers need to know

The construction sector in Albania is entering a new phase. With the latest amendments approved in VKM no. 408/2015 “On the Approval of the Territorial Development Regulation”, new procedures have been introduced that directly affect developers, investors, public institutions, and the real estate market.

The changes aim to simplify certain administrative processes, increase control over ongoing projects, and provide more clarity regarding permits, building units, and project implementation phases.

Below are some of the most important changes introduced by the new regulation:

More Works Can Be Performed Without a Permit

The list of works that do not require approval from competent authorities has been expanded. It now includes temporary drilling for geodetic studies, provided they last up to two weeks. This change aims to facilitate the preliminary stages of study and design.

KKTU Gains a Stronger Role

One of the most significant changes is the expansion of the powers of the National Council of Territory and Water (KKTU). The institution will have greater authority over project modifications during construction, revision of development conditions, approval of temporary permits, and granting easements for passage on state or public properties.

In addition, KKTU may require the inclusion of public functions in certain projects, such as schools, kindergartens, health centers, or necessary community infrastructure.

Another notable innovation for developers is that, for all projects under KKTU jurisdiction that have received building permit approval, developers may request written approval from the technical secretariat to enclose the development site with lightweight and removable structures. This provides greater flexibility in site management from the early stages of project implementation.

Simplified Procedures for Public Investments

For public projects, the required documentation during the application process has been simplified. This applies especially to cases where properties have not yet completed initial registration, aiming to accelerate public investments and infrastructure projects.

New Restrictions on Developer Changes

The regulation states that a change of developer cannot occur at any stage of the project. It is only allowed after the foundations of the building have been completed (quota 0 stage).

Furthermore, adding a new beneficiary to the project is also considered a change of developer, making the process more controlled and transparent.

Changes in Building Permit Conditions

Another change is the removal of the requirement that infrastructure availability must be a precondition for granting a building permit.

Meanwhile, for developments under KKTU jurisdiction, it becomes possible to issue multiple building or infrastructure permits within the same project, allowing greater flexibility for large-scale investments.

Fewer Procedures for Minor Changes During Construction

The KKTU Secretariat, through AZHT, may approve changes of up to 2% of the built area without the need for approval from the KKTU meeting, provided the building façade is not affected.

This is expected to reduce processing time and bureaucratic procedures for technical modifications.

Unit Identification Becomes Essential

One of the changes with direct impact on the real estate market is the detailed identification of units.

Projects must clearly define apartments, commercial units, offices, and other functional spaces. If during construction these divisions are modified without affecting the structure, the changes must be reported and registered with the ASHK and the National Chamber of Notaries.

Introduction of the Shell Completion Certificate

For the first time, the issuance of a “shell completion certificate” is introduced after completion of this construction phase.

This mechanism creates additional documentation that formalizes one of the most important stages of construction and may provide greater security for investors and buyers.

More Structured On-Site Inspections

The regulation clearly defines the stages at which inspections and verifications must take place during construction.

These phases include staking out, foundations, structural frame (carcass), installations, as well as façades and external works. Municipalities are now required to conduct physical inspections at each stage.

Solutions for Unfinished Old Permits

For projects that have remained unfinished for more than five years, a special procedure is introduced for extending the building permit duration.

If developers do not apply for extension under the new procedures, enforcement mechanisms предусмотрed by applicable legislation may be activated, including confiscation procedures.

More Projects Fall Under KKTU Jurisdiction

Tourism, industrial, and cultural projects will be handled by KKTU regardless of their size or location.

This change may significantly impact the development of strategic projects and investments of national importance.

What Happens with Building Distances?

Minimum distances between buildings remain unchanged and continue to be regulated by the existing rules.

However, an important provision has been removed that previously mandated automatic application of standard distance rules in the absence of agreements between parties.

Under the new change, authorities are no longer obliged to automatically apply these distances in every case. Instead, they may consider urban planning, zoning conditions, and project-specific characteristics.

In practice, this means that similar projects may be treated differently depending on the regulatory framework and urban plan of the specific area.

 

The new amendments to the Territorial Development Regulation represent one of the most important reforms in construction procedures in recent years. They affect almost every stage of a project, from preliminary studies and permitting to construction control, unit identification, and project completion.

For investors, developers, and real estate buyers, understanding these new rules will be essential to better grasp how the Albanian construction and real estate market will evolve in the coming years.

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