REAL ESTATE IN KOSOVO

The construction sector in Kosovo is currently undergoing a remarkable period of expansion and development. This growth is exemplified by the presence of numerous construction companies actively involved in the execution of large-scale projects. What’s particularly noteworthy in this matter is the significant number of foreign investors who have recognized the potential and opportunities within Kosovo’s construction industry, leading to substantial investments.

This influx of foreign investment has not only further enriched Kosovo’s legal framework but has also played a pivotal role in fostering best practices within the industry. As a result, Kosovo not only possesses comprehensive legal framework but also actively implements it to ensure the protection of investors’ rights in this dynamic sector. This commitment to both legal adherence and best practices underscores Kosovo’s dedication to creating a conducive environment for sustainable growth and development in the construction sector.

Joint Investment Agreements on Construction: Joint investment Agreements are a common practice in Kosovo’s construction industry, where construction companies enter into detailed agreements with landowners where buildings are planned. These agreements are mandatory to be signed before a notary to ensure the safety of all parties involved. They establish the terms under which landowners provide their land to investors for building construction in exchange for property rights in the upcoming building. On the investor’s side, two or more investing companies can be involved.

This practice is vital for construction businesses, allowing them to invest in land without cash compensation, offering landowners a share of the building units instead. Given the high cost of land, this approach is advantageous for investors.

Construction Permit: Along with the reaching of the agreement as above, in order for the building to take place, the construction permit must also be secured. In Kosovo, obtaining a construction permit is governed by Law No. 04/L-110 on Construction. Generally, a construction permit is required for various construction activities, including new constructions, reconstruction, demolition, significant repairs, and interventions on existing structures’ facades and structures.