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Another step towards completing the legalization process in Albania has been taken with the approval of Council of Ministers Decision No. 418, dated June 10, 2026, “On the Financial Compensation of Property Owners Affected by Legalized Constructions.” The decision has been published in the Official Gazette and aims to address one of the most sensitive issues related to property ownership during Albania’s transition period. The decision provides financial compensation for owners of private land occupied by constructions that have been legalized over the years. At the same time, it enables legalization beneficiaries to obtain the corresponding building parcel in accordance with the applicable legislation, facilitating the gradual completion of the remaining legalization processes. According to data published by the State Cadastre Agency (ASHK), the decision covers hundreds of citizens and provides either financial compensation or the allocation of building parcels. According to ASHK, approximately 870.7 million Albanian lek have been allocated to compensate former property owners. The process includes 422 properties eligible for compensation, while 349 citizens will benefit from the allocation of building parcels. In addition, more than 85,000 square meters of land are included in the process. This fund is considered an important step toward resolving property disputes created over the years as a result of informal constructions and legalization procedures. To increase transparency and facilitate access to information, citizens can check whether they are included in the list of beneficiaries by consulting the Official Gazette or the online platform “Building Parcel Beneficiaries & Compensated Subjects,” published by the State Cadastre Agency. Through this platform, citizens can quickly verify whether they qualify for financial compensation or for the allocation of a building parcel. The legalization process has been one of the greatest challenges in property administration in Albania over the past decades. The new decision aims to create a balance between the rights of landowners and citizens who have legalized their properties by providing practical solutions for pending cases. Experts in the sector consider financial compensation and the allocation of building parcels to be important instruments for completing transitional property processes and increasing legal certainty in the real estate market. The gradual resolution of property ownership and legalization issues is expected to have a positive impact on the real estate market. The more properties obtain complete legal documentation and the more ownership disputes are resolved, the safer the environment becomes for investments, property sales, and purchases. This creates greater transparency for citizens, increases investor confidence, and contributes to the further formalization of Albania’s real estate market.Who Benefits from the Compensation?
More Than 870 Million Lek Allocated for Compensation
How Can Citizens Verify Whether They Are Beneficiaries?
A Step Towards Completing the Legalization Process
What Does This Mean for the Real Estate Market?
