The planning system in Albania has paradigmatically changed since the Second World War, and even more so in the last decade, with a shift from the urbanism approach to a comprehensive and integrated system. The evolution of the planning systems can broadly be categorised into three distinct periods:

Centralised urbanism (1950-1993)

While the institutionalisation of planning in Albania had already started during the 1930s with the first visions for city development and blueprint plans developed by Italian architects with King Zog’s support, academics commonly agree that the planning system in Albania was first established in the 1950s, with the approval of the first planning legislation in 1958 (Aliaj[PL1] [AG2]  et al. 2009). The legislation focused on land use and the protection of agricultural land, regulating and restricting urban expansion to rural land through the ‘yellow line’. During this period (until 1990), Albania was under a communist regime, therefore all land was state-owned. Pursuant to industrial development in the 1970s, new cities were designed, and the planning focus shifted to the ‘preparation and implementation of regulatory plans for cities and villages’, as well as setting general rules for development: setback distances, urban standards, etc. Planning practice during this period took a heavily functionalist and rationalist approach, with a strong Soviet influence (Allkja 2020).

The urbanist/transitional phase (1993-2009)

 The end of the totalitarian regime in Albania opened the path for significant transformations after the 1990s. In 1993 and 1998, new laws on urban planning were introduced, focusing predominantly on building regulations and spatial organisation within urban areas, with the same ‘urbanist’ approach as the previous period (Toto 2019). A set of planning instruments, including the Main Regulatory Plan, Partial Urban Plan, Yellow Line, Suburban Line, and Masterplans, were established. These instruments maintained a high level of rigidity and hence overlooked two critical developments in Albania: the proliferation of informal settlements in suburban areas due to internal migration, and the privatisation of public properties. Despite this, the era was characterised by a technocratic and standardised approach, defining precise norms and standards for various aspects of urban planning (Dhrami 2020). Municipalities lacked the capacity to properly implement the planning law and instruments, and the system slowly became corrupt, with high intensities being encouraged in city centres, and even more informal dwellings in city peripheries. In 2000, this was accompanied by a territorial reform and constitutional change, establishing a two-tier local governance structure – 12 qarks and 373 municipalities and communes. (Allkja 2020).

A comprehensive, integrated spatial approach (from 2009)

The Comprehensive Planning Approach came to the forefront with the enactment of Law 10191 on territorial planning in 2009. It represented a paradigmatic shift in the scope of planning, in horizontal and vertical integration, and in stakeholder involvement. The law was slightly amended resulting in the present enactment of Law 107/2014, titled ‘On territorial planning and development', together with its accompanying regulations. This process ran in parallel with another territorial and administrative reform, which amalgamated the 373 municipalities and communes into 61 municipalities (Toto 2019)

Albania’s spatial planning system is primarily regulated by Law no. 107/2014 ‘On territorial planning and development’ and its three main by-laws: 

• DCM 408 of 13 May 2015 ‘On the approval of the territorial development regulation’
• DCM 686 of 22 November 2017 ‘On the approval of the territorial planning regulation’ 
• DCM 1096 of 28 December 2015 ‘On the approval of conditions, regulations and procedures for the use and management of public spaces’

National level

The Ministry of Infrastructure and Energy is the key authority responsible for overseeing spatial planning at the national level. Previously this role was carried out by the Ministry of Urban Development, which was established to support and foster the new planning reform initiated in 2011, and was later abolished in 2017.

The National Territorial Planning Agency (NTPA), established in 2009, serves as the main institution at the central level to coordinate the local and national tiers of planning, while providing assistance for local planning and ensuring compliance with legislation and regulations. 

The National Territorial Council (NTC), a collegial entity composed of ministers of ministries which have territorial influence and led by the prime minister, is the institution responsible for approving plans of national and local importance. 

The National Agency of Territorial Development serves as a secretariat to issue and monitor special permits for areas of national importance, or strategic territorial investments.

Local level

Municipalities are responsible for all planning processes within their territory, including developing the main planning instruments (the General Local Territorial Plan and local detailed plans), integrating planning and other sectorial policies, issuing building permits, etc. Nevertheless, municipalities must consult the NTPA on all GLTPs, which must be approved by the NTC (national level) before they can be implemented. This is to ensure that national priorities are not overlooked at the local level. 

Qarks are the second level of local governance, with limited responsibilities for planning processes, mainly focused on consultations, the integration of spatial proposals within bordering municipalities, etc.

Planning activities at all levels have a binding character and both vertical and horizontal coordination is mandatory and supported through the NTPA.

At the national level, the General National Territorial Plan (GNTP) sets the framework for national spatial development for the next 15 years. It defines general land use categories (mainly urban, infrastructural, agricultural, natural, and water), proposes transport networks, sets up how environmental protection areas will be integrated with other land uses, addresses coastal challenges, etc. The content and process for elaborating the GNTP is regulated through the Territorial Planning Regulation. Currently, the ‘Albania 2030’ GNTP is in force. The GNTP makes clear reference to several European directives and legislation. The participation process is encouraged, with at least three mandatory public hearings during the analysis, visioning, and proposal stage. The GNTP is drafted by the ministry responsible for planning and approved by the Council of Ministers.

The National Detailed Plan for Areas of National Importance is an instrument that regulates the property relations and infrastructure investments in specific areas designated by law as being of ‘national importance’. These plans are similar to detailed local plans, but due to their strategic importance, they are approved by the NTC.

National Sectoral Plans are drawn up by line ministries for the purpose of the strategic development of one or more sectors that have a strong connection to territorial development, such as: protection from natural disasters, climate change, industry, transport, agricultural development, etc. These plans are not mandatory and may cover the whole country or certain areas. Some examples of such plans include: the Integrated Cross-Sectoral Plan for Tiranë-Durrës, the Integrated Cross-Sectoral Plan for the Coast, and the National Sectoral Plan for Tourism in the Region of the Alps.

Sectoral Qark Plans are similar to National Sectoral Plans, but may be drawn up by the qark council when municipalities lack the capacity to develop General Local Territorial Plans. There are no registered cases of such plans to date.

The General Local Territorial Plan is the main (binding) instrument for planning at the local level for the upcoming 15 years, drafted by the municipality and approved by the municipal council and the NTC. It sets out all investments and development rights for the municipal territory, indicates future land uses, densities, development priorities, investment budgets, etc. The preparation of a GLTP is a coordinated effort between all local (and regional) stakeholders and usually includes numerous public hearings. Currently 60-61 municipalities in Albania have approved a GLTP. Usually, the process of drafting the GLTP takes six months to a year, while the approval stage may vary. The GLTP contains six core components: a territorial strategy (including a detailed analysis, visioning, and an action plan); a General Proposal Plan, including all transformations; the Local Regulation, including a zoning map and development passports; a Capital Investment Plan; the strategic environmental assessment; and a GIS-based package of maps. These plans are mandatory.

Local Sectoral Plans are instruments that may further detail the GLTP for a specific sector, such as climate, energy, transport, green areas, etc. They may cover the whole municipal territory or certain areas within it, and may be mandatory or not, depending on the type.

Detailed Local Plans are masterplans focused on specific areas, as designated in the GLTP. These areas are earmarked to be redeveloped or transformed in terms of land use, or are programmed to receive major public investments, or their layout is to be restructured. The process aims to achieve a proper and fair redistribution of the property values for current landowners after the development process, and includes them as actors in all stages of the drafting of the DLP.

All levels of planning (general national, sectoral, local plans) have a similar content and structure:

• Detailed spatial analysis (and metabolism analysis)
• Strategic visioning
• Spatial proposals / investments, etc.
• Action Plan for strategic investments
• Maps and GIS database
• Environmental assessment

The GLTP package may include more documents, such as:

• Priority Investment Plan 
• Regulation for Urban Planning and Development
• Passports with development indicators for the entire local area (and detailed zoning map)

The planning system is envisaged in a way that national policies and strategies guide regional and local planning efforts. Local plans should not only be consistent with higher-level plans, but also with strategic decision-making in adjacent municipalities. The NTPA is the institution that is responsible for this vertical and horizontal coordination and may approve the permissibility of a local plan only if the coordination has taken place.

All planning instruments, decisions and data are published in the National Planning Registry, and on the planning e-map, which is maintained and unified by NTPA and is publicly accessible by all.

Spatial planning in Albania is a dynamic and evolving discipline, reflecting the country’s transition from a centralised planning system to a more decentralised and democratic approach.

In the wake of the legislative changes in planning in 2009, Albania’s planning process has undergone a transformative shift, embracing a plethora of innovative methodologies and approaches. These approaches are underpinned by core principles such as integration, coordination, comprehensiveness and sustainability, all of which are at the forefront of the conceptualisation of planning instruments. 

A striking example of innovation can be observed in Tirana, where the municipality is exploring land value capture mechanisms as a means to finance public infrastructure projects. One such mechanism is the imposition of an 8% infrastructure impact tax on new construction projects, calculated based on the market value of the development. It is noteworthy that developers are required to prepay this tax. 

Another noteworthy mechanism in play is the application of a 3% social housing tax, as mandated by Law no. 22/2018 on social housing. This tax is applicable to developments within residential construction areas exceeding 2,000 square metres. Given this threshold, Tirana stands as the primary beneficiary of this tax, as it hosts the most extensive housing projects in the entire country.

These innovative fiscal mechanisms exemplify the municipality’s proactive approach to financing public infrastructure. However, there are pertinent issues associated with these instruments, related to transparency, social equity, etc. 

Since the reform, many further priorities influencing spatial aspects have come to the forefront. The Green Agenda for the Western Balkans sets forth the priorities in terms of depollution, the mitigation of climate change effects, decarbonisation, the protection of biodiversity, etc. There is a series of instruments that need to be developed at local and national level, which have a robust spatial dimension, but were not included in the respective plans. Some of these include: the Disaster Risk Reduction Plans at both levels; the Climate Plans and Strategies at both levels; the Green Action Plans and Sustainable Urban Mobility Plans at the local level; energy efficiency plans at the national level, energy labelling at the local level, etc. These instruments need to be properly coordinated with the planning documents and sound decisions need to be made in case there is a subsequent need to revise them to better adapt to resilience / adaptability criteria.

The planning system is vastly regulated and institutionalised in Albania, mainly as a response to the previous planning system, which had a more ‘laissez faire’ approach and produced vast inefficiencies and disparities in terms of spatial development. Nevertheless, the current structure allows for soft planning processes, as long as they are in line with strategic framework instruments. For example, communities may come together to design a unified plan for their neighbourhood, in accordance with the GLTP. However, such initiatives rarely occur, as national and local authorities still face difficulties in coordinating and implementing the plans and instruments currently in place.

In any case, each planning process is preceded by a strategic visioning process, which aims to look at the ‘bigger picture’ and set the directionalities of interventions, rather than specific blueprint plans. Moreover, the plans, even though long term in duration, are conceived as dynamic documents, so that they may be revised periodically, upon the request of the municipality. The revision process may be lengthy if the required revisions are of a strategic impact, or shorter if the revisions are mostly localised. 

The initiation of urban and regional development and planning policy in Albania was catalysed by the launch of the National Strategy for Development and Integration 2007-2013 (NSDI I). This strategy underscored the significance of mitigating regional disparities, which were viewed as hindrances to the nation’s overall progress. It pledged to establish a streamlined and inclusive planning and building permit system, as well as a unified policy framework for the socio-economic advancement of the administrative regions (qarks). These efforts aimed to consider the distinct developmental requirements of each qark, with a particular focus on providing substantial assistance to underprivileged areas.

In 2009, the approval of Law no. 10119 ‘On territorial planning’ had the aim of establishing an entirely new planning system reflecting a more spatial, comprehensive, and integrated approach, typical of Western European countries. The GNTP makes clear reference to several European directives and legislation as well – mostly in the environment and transport sectors. 

Moreover, the EU’s Cohesion Policy has played a pivotal role in funding infrastructure and development projects. There are recurrent attempts to set up a regional planning scheme, to encourage a place-based approach to development and social, territorial, and economic cohesion within regions. The Regional Development reform attests to this.

Aside from the above efforts, the Instrument for Pre-accession Assistance (IPA) funds projects aimed at improving regional development, transport, tourism, sustainable communities, and environmental protection. These funds support Albania’s efforts to modernise and enhance the spatial planning systems and capacitate local governments.

Despite progress, Albania faces several spatial planning challenges. One prominent issue is informal urbanisation, particularly in the suburban areas of major cities. Informal settlements often lack proper infrastructure and services, posing significant social and environmental challenges. Addressing this issue requires a multifaceted approach, involving regularisation, infrastructure development, and social inclusion.

Although the swift advancement in local general plan development is notable, challenges persist in terms of effective implementation. The expedited pace at which these plans were formulated, alongside the reliance on outsourced processes and the utilisation of subpar information, has yielded plans over which municipalities exert minimal control and that exhibit notable deficiencies. Given that municipalities are obliged to align the issuance of building permits with local general plans, they are now compelled to commence the revision process for their local general plans. This entails rectifying errors and addressing the identified gaps to ensure robust and compliant planning documents.

A notable absence of synergy among various sectors, particularly during the execution phase, is apparent. Despite the recognition of sectoral conflicts within territorial plans and the existence of regulatory policies aimed at mitigating these conflicts, practical implementation paints a contrasting picture. In practice, the short-term gains associated with investments in the construction, energy, and infrastructure sectors frequently overshadow the consideration of socio-environmental impacts. Typically, the resolution of sectoral conflicts tends to occur retrospectively, after the fact.

Although it is regulated by law, still there is insufficient actual participation and transparency in planning, which poses significant challenges, particularly in terms of establishing democratic legitimacy and ensuring accountability. Moreover, the majority of inputs and perspectives from citizens and other stakeholders tend to surface exclusively during formal public hearings. Often, these inputs revolve around individual and private concerns, primarily related to the implications of the plan on personal property, or they emerge as immediate reactions to plan presentations. The existing participation practices lack mechanisms for documenting the progression of concerns raised by the public to the point where they can be specifically or broadly addressed. This deficiency diminishes citizens’ confidence in the participatory processes.

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