Legjislacion
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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