Albania has made considerable progress in the recent years in the provision of affordable adequate housing to all. Notably, the national government has been providing support to municipal programmes for housing construction; supporting investments into construction of affordable housing, including through public-private partners; and legalizing informal settlements to improve the living conditions of the population.
However, multiple challenges remain due to the lack of available public funds for housing construction and insufficient capacity of some of the municipalities to implement housing programmes. Moreover, natural disasters created new economic and financial challenges: the earthquake in Albania in November 2019 left 14,000 people or 2 per cent of the Albanian population homeless. Another earthquake struck Albania in January 2020, which brought damage to both public and private properties amounting to EUR 844 million. The cost of their reconstruction is estimated at EUR 1.07 billion: about EUR 800 million is needed to rebuild homes while the remaining amount is for repair of damaged infrastructure, such as schools and health centres.
The COVID-19 pandemic further diminished the budget resources available for affordable housing. According to the Albanian Ministry of Finance and Economy, the first phase of the lockdown will cost the economy EUR 16 million in tax revenues. In this context, there is an urgent need to develop new approaches to financing housing construction in Albania.
To discuss opportunities for financing affordable housing, the Albanian Ministry of Economy and Finance and the United Nations Economic Commission for Europe (UNECE), in cooperation with Housing Europe, UN-Habitat, UNDP Tirana and the Union for Mediterranean, organized an online workshop on 18 June 2020 The workshop discussed housing finance challenges and opportunities and the future role of the National Housing Agency in Albania taking into account relevant international best practices. A wide group of housing finance and housing policy experts from Belgium, Croatia, Ireland, Portugal, Slovenia, Spain, Ukraine and other countries shared their experiences on the topics.
The outcomes of the workshop will contribute to the revision of Albania’s National Housing Strategy and its Action Plan. They will also help the formulation of the local housing plans for three municipalities, which will be selected on a competitive basis. Other municipalities will be supported through guidelines that will be developed based on results of tests on the pilot municipalities.
The workshop will benefit the UNECE-Housing Europe-UN-Habitat joint “#Housing2030 Initiative: Improving Housing Affordability in the UNECE region” through the best practices on affordable housing shared during the discussions.
The workshop also initiated the work on the second Country Profile on Urban Development, Housing and Land Management of Albania to be developed by UNECE in 2020-2021, in cooperation with the Government. The first Country Profile prepared for Albania in 2002 focused on the housing sector. The second Country Profile will assess the country’s progress in developing housing and urban development policies and will include a comprehensive set of policy recommendations to support the country’s efforts to overcome persisting challenges in areas such as informal settlements, low energy efficiency in buildings and lack of financial resources for housing construction and renovation.
Following the workshop, UNECE will also provide support to Albania in promoting urban resilience through its United Nations Development Account project “Urban economic and financial recovery and resilience building in the time of COVID-19”. The project will be implemented not only in Albania but in several other countries in the UNECE region as well in 2020-2021.