Real estate revaluation postponed to 2025: What happened and what to expect?

The long-awaited real estate revaluation process in Albania has been postponed until 2025. This delay is due to the fact that the reform for setting property reference values nationwide has not yet been completed. Initially, reference prices will be set for other cities, and only then will the revaluation process begin, as these two processes need to run simultaneously to ensure that all citizens benefit from the alignment of their property values with the actual market prices.

Reasons for the delay and setting reference prices

The revaluation process was originally set to begin in September 2024, but due to the delay, after this phase, property prices will be adjusted to reflect market realities. Prime Minister Edi Rama has emphasized that this will be the final revaluation, and for this reason, the setting of new reference prices, especially in coastal cities, is crucial. These reference prices will directly affect the increase in property values, benefiting citizens.

Once this phase is completed, the revaluation will start, bringing property values closer to market prices and providing benefits to those whose properties have outdated reference prices. For example, a property in Durrës, whether by the coast or on the outskirts of the city, currently has a reference price of around 660 euros per square meter, while the actual market prices are much higher.

Revaluation rules and tax rates

To ensure an accurate revaluation, the depreciation of property based on its age will also be taken into account. This process will benefit citizens by increasing the value of their properties in accordance with current market demand.

The last revaluation process, completed in August 2022, involved 110,000 families, with a total value of 12.7 billion lek for the state. This process had a 3% tax rate, and now, with the new reference prices set, the full revaluation process will be triggered.

Conclusion

The real estate revaluation offers an opportunity to ensure that property values align with market realities. The delay until 2025 may help ensure a more accurate and fair revaluation, creating a more stable and equitable system for all citizens.

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