TIRANA, Nov 12 /ATA/ – Albanian government plans to introduce mortgage guarantees, housing subsidies and rent-to-buy schemes to improve access to affordable housing, Economy and Innovation Minister Delina Ibrahimaj said on Thursday.
Presenting a draft social housing law to parliament’s Committee on Legal Affairs and Public Administration, Ibrahimaj said rising property prices, particularly in Tirana and other major cities, made new housing support measures necessary.
Since the existing law was adopted in 2018, around 31,000 households, representing approximately 100,000 people, have benefited from housing programmes, including rental assistance, subsidised loans and social housing, she said.
The new legislation would introduce guarantees to help families unable to meet banks’ down-payment or collateral requirements, as well as establish a Fund for Housing and Social Cohesion, financed through state budget allocations, private-sector contributions and other sources.
Another proposed measure is a 30-40-30 housing model, allocating 30% of new developments to social housing, 40% to affordable housing and 30% to properties sold or rented on the open market, with the aim of promoting mixed-income communities.
Opposition Democratic Party lawmaker Arian Ndoja questioned the need for extensive changes to the existing law and warned that higher taxes under the proposed 2027 fiscal package could increase construction costs and housing prices.
He also questioned whether the proposed affordable housing provisions could create unrealistic expectations of state-funded rental support for students.
Responding to the criticism, Ibrahimaj said the bill would also give developers greater flexibility in meeting their existing obligation to contribute 3% of their projects’ value to municipal social housing funds, including through instalments.
“We are creating incentives, not imposing a burden,” she said.
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