Albania Limits Residential Development in Resort Complexes

Albania has introduced limits on residential construction in resort complexes. No more than 40% of the total floor area in mixed-use developments may be allocated to private apartments and villas, RTSH reports. The remaining space must be used for tourist accommodation and related services. The decree also clarifies the certification process for development projects.

New Rules for Resort Development in Albania

On November 5, 2026, Albania’s Council of Ministers approved new rules for resort construction. The decree defines categories of tourist accommodation and sets out requirements for their design. It specifically addresses mixed-use resorts (resort miks), which combine hotel facilities with residential units.

The 40% limit is calculated based on the total constructed floor area, not the size of the land plot. In a project covering 100,000 sq. m of floor space, for example, at least 60,000 sq. m must be reserved for hotels and guest services. The remaining 40,000 sq. m can be used for residential purposes. Apartments and villas intended to accommodate tourists, however, count towards the hotel component.

Shared facilities are counted according to how they are used. Where they serve both components and cannot be separated, their floor area is allocated proportionally. Developers must provide detailed calculations for each building, floor and intended use. No part of a building can be left out of the project documentation.

Certification of Resort Projects

Developers of new resorts in Albania must show that their projects meet the required standards before obtaining a construction permit. The Ministry of Tourism reviews the planned use of buildings, allocation of floor space and other features of the complex. Once the project passes this review, the developer receives a preliminary certificate and can proceed to the next stage of approvals.

This review was introduced in July 2026, when Albania adopted amendments to its tourism law. The November decree clarifies the requirements for different property categories. Changing the intended use of premises or the balance between hotel and residential space will require the certificate to be revised. In some cases, the developer will also have to amend the construction permit.

Exceptions apply to projects approved before the July law came into force. Developers do not need a preliminary certificate if a construction permit had already been issued. Before opening, however, the resort must undergo the required assessment of its category and service standards. Existing certificates remain valid, allowing already certified properties to continue operating without repeating the process.

What Changes for Apartment Owners

The new rules do not prohibit the sale of apartments and villas in Albania’s resort complexes. Properties included in the hotel component, however, must operate under a single management system. They are covered by the resort’s overall certificate and do not require separate classification, even when they have different owners.

Owners who want to rent a residential apartment to tourists must first change its officially designated use. The change needs approval from the relevant authorities and must be reflected in the project documentation. The space will then be counted as part of the hotel component when calculating the 60/40 ratio.

Separate requirements apply to apartment hotels, where units may be privately owned but are serviced by a single operator. Buyers should check management arrangements and rental conditions in advance. Particular attention should be paid to the permits, which specify the unit’s official status and determine how it can be used.

What This Means for Investors

Analysts at International Investment note that the new restrictions could change the approach to developing resort property in Albania. Developers will need to place greater emphasis on hotel operations, as the proportion of space available for residential apartments and villas is now limited. The performance of these complexes will increasingly depend on tourist demand, service quality and effective management.

At the same time, Albania continues to seek foreign investment. A draft tourism law presented in late October preserves the possibility of private ownership in mixed-use resorts and proposes measures to support investors. The bill is still under discussion, however, so the final terms of these initiatives remain uncertain.

For the market, a key issue is the balance between new construction and actual demand for tourist accommodation. Even compliance with the 60/40 ratio does not guarantee strong returns, particularly in destinations with pronounced seasonality. Investors need to assess not only potential property price growth but also infrastructure maintenance costs, hotel occupancy and the prospects for rental income.

Frequently Asked Questions About Resort Real Estate in Albania

What has changed in Albania’s resort construction rules?

In mixed-use resorts, residential property is capped at 40% of total constructed floor area. At least 60% must be devoted to the tourist component, which can include hotels, holiday apartments and related services.

Does the 40% cap apply to the entire resort site?

No. The ratio is based on constructed floor area rather than the size of the land plot. Shared facilities are also included when allocating space between residential and tourist uses.

What has changed for buyers of apartments and villas?

The new rules do not prohibit private ownership of these properties. Buyers should nevertheless check the official designation of each unit and the terms governing its use in the permits and management agreement.

How can a residential apartment be rented to tourists in a resort complex?

Residential status does not automatically allow a unit to be included in a resort’s hotel component. The owner must obtain approval to change its designated use and update the project documentation.

Which projects require preliminary certification?

New developments covered by Law No. 83/2026 must obtain preliminary certification before applying for a construction permit. Projects that received a permit before the law took effect are exempt.

When do the new requirements take effect?

The government adopted the decree on November 5, 2026. It is due to take effect following publication in Albania’s Official Gazette. As of November 9, its publication date had not been confirmed.