Plug/ The housing law favored construction oligarchs – 83 million euros disappeared for just 21 apartments

2025-05-21 22:21:00, Denoncim CNA

Plug/ The housing law favored construction oligarchs – 83 million euros

We brought these figures not to discuss the construction market – a topic that requires not one, but several shows. Today we will focus on the state's negligence in the face of the housing problem. We will bring facts to the public about how millions of euros and thousands of square meters of construction space are obtained as taxes to mitigate this social gap, but to this day, no one knows where these funds have ended up.

While Prime Minister Edi Rama and the Mayor of Tirana do not stop the propaganda, the social housing in Shkozë remains the last to be built for families in need. Since then, the housing process has been shrouded in darkness.

Faced with this propaganda, the Plug show approached the Municipality of Tirana to obtain information regarding housing programs. Specifically:

What is the area obtained under the law as a tax for construction permits?

How much money is collected from this tax?

How much construction area has been converted into apartments for citizens from 2019 to date?

As of the time of publication, the Municipality of Tirana has not provided any response. The refusal to provide information comes at a time when the data itself refutes public claims.

However, Plug has obtained official data from the Municipality of Tirana on the social housing fund, provided as a result of the 3% contribution of the construction area that builders are obliged to provide for social housing:

2019: 73 building permits with construction area over 2000 m²

2020: 62 building permits – 15,737.7 m² for the public fund

2021: 81 building permits – 22,261.1 m²

2022: 77 building permits – 23,957.2 m²

2023: 62 building permits – 16,853.1 m²

January–March 2024: 12 building permits – 4,517 m²

Total area acquired (2020–2024): 83,326.1 m²

If this area were converted into money, at the average reference price in Tirana, it would be worth around 83 million euros. But according to the Municipality itself, only 27 million euros have been collected from the builders, and only 21 apartments have been physically delivered.

Data declared by the Municipality of Tirana (in lek):

Typology 2020 2021 2022 2023

Contribution to the social fund 360,975,425 496,745,950 959,849,450 893,829,905

For 2019, 32% of permits have paid the tax in monetary value.

For 2020: 29% in cash, 6% in combined form (apartments + cash).

2021: 35% in cash, 9% in combination.

2022: 69% in cash, 3% in combination.

2023: 65% in cash, 2% in combination.

According to census data, the average surface area of ??a flat in Tirana is 70 m². By simple calculation, from 83,326.1 m², the Municipality could have provided housing for over 1,100 families or young couples. But in reality, only 21 apartments have been delivered and out of a possible 83 million euros, only 27 million euros have been reported.

Moreover, there is no transparency as to where this money has ended up. The Municipality of Tirana owes its citizens a clear answer: where have the funds collected in the name of housing been channeled? Or should SPAK be the one to investigate how the revenues obtained from construction taxes have disappeared?

Meanwhile, the Municipality has overshadowed the guaranteed fund for social housing and has come before the public with the soft loan project. An initiative that, in essence, aims to help categories in need, but due to unfavorable conditions, has been widely rejected and has failed to meet annual quotas.

Conclusion:

In five years, millions of euros have disappeared from a legal tax that aims to help the most needy citizens and only 21 apartments have benefited. This is a call for transparency, accountability and immediate institutional action./ Syri.net