Albania struggles to attract private investment for state property projects

Albania is implementing a new model for developing state-owned property through public-private partnerships. Under this scheme, the state provides land and development rights, while private investors finance the construction of commercial spaces. In exchange, developers are required to build public infrastructure, such as offices, stadiums, or libraries, or transfer a portion of the new surface area back to the state.

The program aims to reduce the burden on the national budget by avoiding direct payments for public buildings and reducing the millions of euros spent annually on renting old or scattered facilities. The Albanian Investment Corporation began opening international tenders for these projects in September 2024.

Despite the theoretical benefits of saving public funds and securing new assets, the model has faced challenges in attracting interest. Out of 15 announced projects, only four have reached the contract stage. The remaining projects have either remained in negotiations, been reopened, or canceled due to a lack of market interest, raising questions regarding competition terms and risk distribution.