The government has proposed amendments to the current housing law, where among the main programs to address the need for affordable housing will be payments for rents with the right to purchase for apartments in social housing and the provision of loans with 0% interest. The first scheme is the “Rent with the Right to Purchase” program. Beneficiaries will be able to rent an apartment under the program and a portion of the rent payments will then be calculated towards the purchase price of the apartment.
The second scheme relates to 0% interest loans and guarantees for families who are able to repay the loan, but do not have the collateral or money for the initial payment. In this case, the government can guarantee part of the loan, through agreements with financial institutions.
According to the draft law, the categories that may benefit from affordable housing programs will be low- or middle-income families who are unable to secure housing on the open market, young people at the beginning of their careers, young families, single-parent families with minor children, employees of public services and priority professions, persons with disabilities and their caregivers, as well as citizens returning from emigration.
The draft law affects several articles in the current law on social housing, but keeps the scheme for rent subsidies based on market value prices unchanged. The current law provides that the subsidy amount is determined on the basis of average rent prices based on market value. The 100% limit of the subsidy amount is determined by the municipalities, based on average rent prices for the previous year.
In cases where a family chooses to live in a rented apartment with an average price above the limit set as a 100% subsidy measure, the difference in price will be paid by the family itself. The law stipulates that this payment will also have a limit, and cannot exceed 25% of the family’s income. In Tirana, the average rental prices for both types of apartments are calculated at 721 euros per month. For 1+1 apartments, the average rental prices have reached 590 euros per month.
For 2+1 apartments, the average price has reached 954 euros per month. The data was published by Monitor according to the calculations of one of the real estate agencies for transactions in the period January-June 2026. In relation to the average gross salary of about 90 thousand lek, this rent represents about 77% of gross income.
In Tirana, rental prices vary significantly from one area to another. For 1+1 apartments, average rents until June ranged from around 320-350 euros in suburban areas, to around 830-850 euros per month for areas near the center. While for 2+1 apartments, prices ranged from 450 euros in the Fresku area, to 1,500 euros per month in the area near the “Air Albania” stadium.
Prime Minister Rama earlier, during the presentation of the housing reform, said about the rent subsidy measure that it is expected to reach up to 50% of the value for young couples and for emigrants who will return to the country. According to him, the subsidy scheme will include apartment rents worth up to 400 euros. In the first year, according to him, 3 thousand individuals will benefit, while the state is expected to subsidize 50% of the rent or up to 200 euros per month.
New programs
Improving rental subsidies and activating private housing
The draft act expands rental subsidy instruments and provides for new mechanisms for the use of private housing stock.
Through Article 17 of the draft law, Article 39/1 is added, which gives AKTSS and local self-government units the opportunity to identify and contract unoccupied private housing for the purposes of social and affordable housing.
Agreements with owners may include medium- or long-term leases, guarantees for rent payment, partial coverage of maintenance or rehabilitation costs, and apartment management.
The criteria, procedures and forms of financing will be determined by a sub-legal act. Also, Article 18 of the draft law adds a special program for rent subsidies for special categories, providing for the use of an electronic platform for housing registration, application and administration of procedures.
12. “Rent with right to purchase” program
Through Article 21 of the draft law, a special chapter is created for the “Rent with Right to Purchase” program and Article 43/1 is added.
This program creates the opportunity for beneficiaries to use the apartment owned by AKTSS against a periodic payment, where part of the payments can be credited to the purchase price of the apartment. Changing the destination of an apartment from the social rental housing program to the “rent with the right to purchase” program will be done only when this matches the identified housing needs and does not affect the needs for social rental housing.
New financing and guarantee instruments
The draft act also provides for new financial instruments for beneficiaries who have the capacity to obtain loans.
Through Article 24 of the draft law, the possibility of loans with 0 percent interest, subsidized by the FSKS and/or the state budget, through the AKTSS, is foreseen.
This same article, through the addition of Article 47/2, provides for a partial guarantee from the FSKS for individuals and families who have the ability to repay the loan, but do not have the collateral or initial contribution required by the financial institution.
The guarantee will cover a portion of the loan principal and its implementation will be done through agreements between AKTSS and financial institutions.
Article 6
After Article 13, Article 13/1 is added, with the following content:
“Article 13/1 Categories and entities benefiting from affordable housing
Beneficiaries of affordable housing programs are individuals/families who: a) do not own a home, are in housing quotas or live in housing outside housing standards; and/or b) do not have access to the free rental or purchase market; and c) meet the income criteria according to the levels of this law.
2. Affordable housing programs target the following groups:
a) families with income according to the definitions of point 1 of article 3 of this law;
b) families with middle income that, due to market prices, cannot afford to buy or rent;
c) young people at the beginning of their careers;
d) young families where the age of the oldest member is no more than 40 years old;
e) single-parent families with dependent minor children;
f) employees of public services and priority professions,
g) persons with disabilities and their caregivers.
h) citizens returned from emigration who meet the conditions of the program.
The income limits and the method of categorization are determined by decision of the Council of Ministers.
Article 33 of the current law on rent subsidy according to market value prices
The value of the rental subsidy can be up to 100 percent of the average rent value of housing in the free market for the local self-government unit where this subsidy is provided. The maximum value of the rental subsidy is determined each year, based on the data of the previous year, and is approved by decision of the council of the local self-government unit.
The payment that the family must make for the difference between the market rent and the value of the rental subsidy should not exceed 25 percent of the family’s income.
The method of calculating the value of the rental subsidy in the free market is determined by decision of the Council of Ministers./Monitor