Albanian Real Estate: Why the Cadastre Has Become a Key Factor for Investors

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The European Commission noted Albania’s progress, while at the same time pointing to persistent fundamental problems in the real estate market. Despite the existence of a formal legal framework, the effective enjoyment of property rights remains limited, directly affecting investment decisions, deal structures and their long-term sustainability.

Risk factors: inconsistencies in registration

The European Commission’s report emphasises that Albania’s legal and institutional framework for property protection is largely in place, but its practical implementation remains incomplete. The key issue lies not in the absence of legislation, but in decades of accumulated inconsistencies in land registration, overlapping boundaries, measurement errors and the continued use of outdated documents. All of this reduces legal certainty in transactions and constrains the country’s economic development.

The digitalisation of the cadastre, which the authorities view as the main tool to address these problems, has progressed unevenly. Around 91% of land plots have been registered, yet the digital processing of ownership titles has been completed for only 43% of properties. Supporting documents have been digitised to 69%, while cadastral maps account for just about 10%. At the same time, roughly 80% of previously recorded data has not yet been verified for accuracy, maintaining the risk of discrepancies between the actual condition of properties and the information contained in official registers.

For foreign investors, the quality of cadastral maps and data verification is of critical importance. When purchasing property at early stages of construction or structuring transactions through special-purpose companies, legal uncertainty regarding plot boundaries, title status or a property’s history becomes a key risk factor. Such discrepancies can complicate access to bank financing, increase costs and hinder exit strategies.

Reform roadmap

The European Commission notes that a significant share of real estate transactions in the country is still carried out using paper documents or outdated data. This undermines confidence in the market and limits capital inflows. Additional risks stem from corruption in service delivery and insufficient procedural transparency, which are particularly sensitive for foreign buyers lacking local expertise.

In an effort to address these issues in a systemic way, Albania’s State Cadastre Agency approved a reform roadmap in June 2025. According to this document, the completion of full digitalisation of the cadastral system is scheduled for December 2026, while first-time registration of all real estate is planned for the end of 2028. These timelines are recorded in the European Commission’s report and are viewed as benchmarks whose achievement should lead to a significant reduction in legal risks in the market.

At the same time, the authorities are expanding the digital services of the State Cadastre Agency. By the end of 2025, ten key services had been automated, including application submission and payment for cadastral procedures, and a system of direct electronic payments was introduced via the state portal e-Albania. These changes are expected to shorten registration timelines and reduce the impact of the human factor, which the European Commission has previously linked to corruption risks and low procedural transparency.

Cadastral reform is also closely linked to the tax infrastructure of the real estate market. Albania’s Ministry of Finance has postponed until 2028 the introduction of a new levy model based on market property values, citing the need to complete the formation of a fiscal cadastre and the integration of registration data.

Investment climate

Interest from foreign buyers in Albania’s real estate market continues to grow despite ongoing legal constraints. According to the Bank of Albania, investment volumes in this sector in the first half of 2025 reached a record €253 million, the highest level on record.

The implementation of the reform roadmap is of fundamental importance for the future investment climate. Improved data accuracy, unified registers and a transition to fully digital procedures are expected to enhance transaction transparency, facilitate access to financing and broaden the pool of investors willing to view Albania as a long-term market. At the same time, the report stresses that achieving these goals will depend not only on technical digitalisation, but also on adherence to the rule of law, transparency and effective judicial protection of property rights.

Analysts at International Investment note that the coming years will represent an important transition period for foreign investors. Legal clarity in transactions is expected to improve gradually, but risks will not fully disappear until the reforms are completed. In this context, cadastral reforms represent not merely an administrative project, but a key condition for the sustainable development of Albania’s real estate market and its integration into the broader European investment space.