How Coastal Zoning Laws Impact Property Development in Albania

A Local Perspective from the Heart of the Riviera

I’ve been working in real estate in Saranda for years. I’ve seen old fishing homes turned into boutique hotels, hillside plots transformed into luxury seaview apartments, and yes—I’ve also seen deals fall through because of one misunderstood zoning rule. It’s part of the game down here on the Albanian Riviera.

Zoning laws might sound boring, but if you’re even thinking about buying or building near the coast—trust me—you’ll want to know what they mean for your future property.

Because here’s the truth most people don’t hear until it’s too late:

Not every beachfront plot is buildable.

And not every buildable plot allows the kind of project you want to build.

⸻

Let’s Break Down the Basics (Without Getting Too Technical)

Albania has something called a General Local Plan (or “Plani i Përgjithshëm Vendor” in Albanian). Every municipality has one. These plans divide land into zones, and each zone has its own rules—how high you can build, how much land you can use, what types of buildings are allowed, and so on.

In coastal areas like Saranda, Ksamil, or Borsh, these zoning codes matter a lot. They determine whether you can build a five-story apartment block—or just a one-story villa. Or sometimes, nothing at all.

One of the most common codes we deal with around Saranda is LU.UB.3 (especially in Borsh and parts of Ksamil). This means “Urban Block 3” in a coastal-use category. Sounds technical, I know. But what it really means is this:

You might be limited to low-density tourism development—think 3 villas with private pools, not a 30-unit condo.

We’ve helped clients navigate this process many times. And every time it’s a bit different.

⸻

The View Is Free… Until It’s Not

I can’t tell you how many times a client has stood on a beautiful piece of land and said, “I want to build a hotel right here.” And I get the excitement. The sun hits the water just right. The breeze smells like rosemary and sea salt. You’re already picturing the infinity pool and breakfast terrace.

But here’s where it gets tricky.

Some of these coastal zones have strict height limits—usually 8.5m or less—which means no tall buildings. Just two or maybe three floors max. And they often require setbacks from the shoreline, the road, or even neighboring lots.

So that dreamy seafront villa? It might need to sit 20 meters back. Or it might not be allowed at all because the land falls within a protected natural area, like the Butrint National Park boundary.

If that surprises you—it should. A lot of foreign buyers have no idea.

⸻

A Personal Example (Because This Happens More Than You Think)

Last week, I showed a couple from Sweden a plot in Ksamil. The view was absolutely stunning—Corfu island, turquoise water, olive trees framing the edges. They were in love. I could see it in their eyes. They started talking about a small resort.

But I already knew the land was part of a special tourism development zone with a low building coefficient. That means you can build—yes—but only up to a certain percentage of the land. And no high buildings.

So I took them to a different option—a finished project we’re working on nearby called White Residence Ksamil. It’s fully compliant, beautifully designed, and ready for that kind of vision. Sometimes buying into a project is the smarter move than starting from raw land.

⸻

Why This All Matters (Especially Now)

Albania is growing. Fast. And the south? Even faster.

The days of throwing up a building wherever you want—they’re over. Municipalities like Saranda and Himara are under pressure to protect the coastline from overdevelopment. That means stricter zoning enforcement, more inspections, and real consequences for building illegally.

Which—by the way—happens more than you’d think. And I promise you, the fines and legal headaches are not worth it.

That’s why we only work with projects that are fully permitted, zoned, and approved. Like Panorama in Saranda—one of the most unique hilltop developments with unobstructed sea views, built in full compliance with local zoning. Or Saranda Terraces, which sits in a prime residential zone but offers tourist-level amenities. You get the best of both worlds.

⸻