Kosovo is undergoing a rapid construction boom, with cities expanding and skylines transforming at a pace rarely seen in the region. Yet, behind this surge lies a puzzling paradox: tens of thousands of homes remain uninhabited, exposing an imbalance between real estate development and economic utility.
According to the Kosovo Agency of Statistics (ASK), from 2011 to 2024, the number of residential units increased by a staggering 43 percent. Today, a country with approximately 1.6 million people boasts around 590,000 habitable homes. On average, this equates to one home for every three residents.
A striking 96% of families in Kosovo own the house they live in, highlighting a strong cultural norm: investing in real estate is seen as a long-term security for the family. As Naser Kabashi, professor at the Faculty of Civil Engineering and Architecture at the University of Pristina, explains, “Newlywed couples are acquiring homes earlier, and family sizes are generally smaller compared to the past.”
But Who’s Living in These Homes?
While the increase in construction may paint a picture of economic vitality, over 182,000 homes remain empty—including unfinished, unsold, or rarely occupied apartments. A significant portion of these are owned by members of the Kosovar diaspora, according to real estate agencies and construction firms.
Data from the Central Bank of Kosovo reinforces this, showing that out of €856 million in foreign direct investment (FDI) in 2023, €647 million went into real estate—much of it from the diaspora.
For experts like Kabashi, these homes represent a form of "dead capital"—wealth that is unused and unproductive in terms of economic growth. This view is echoed by Lulzim Rafuna, president of the Kosovo Chamber of Commerce, who says, “These investments help the construction sector, but unused properties do not contribute meaningfully to the broader economy.”
Rafuna suggests that if this capital had been directed toward manufacturing or production industries, both investors and the wider public would benefit. “Increasing domestic production would boost exports, reduce imports, and enhance economic wellbeing,” he says.
A Housing Market Beyond Reach?
The price of housing continues to climb. Driven by global disruptions from the COVID-19 pandemic and the war in Ukraine, the cost of construction materials surged, pushing home prices up by more than 20% in recent years.
Today, Pristina apartment prices range from €1,000 to €2,500 per square meter, depending on the neighborhood and developer, while prices in smaller municipalities hover around €800 per square meter.
“We’re not seeing price drops—in fact, prices are still climbing,” says Burim Halili, owner of a real estate agency in Pristina.
Yet, demand is beginning to wane. According to Brahim Selimaj, head of the Kosovo Builders Association and owner of a construction company, developers may soon have no choice but to reduce prices: “Buyers are fewer, and the only solution will be to lower prices to sell.”
The trend is already visible in ASK data. In the first half of 2023, only 1,628 apartments were sold across the country—a steep drop from 4,967 sales in 2022 and 6,561 in 2021. In Gjilan, a city of over 90,000 residents, just six apartments were sold in the first six months of 2023.
Can People Even Afford to Buy?
With an average monthly salary of just €570, homeownership remains a financial stretch for many in Kosovo. Most households spend the bulk of their income on food and daily necessities, leaving little room for large purchases or unexpected expenses over €200.
Kosovo’s economy remains highly dependent on imports and remittances, which exceed €1 billion annually. Meanwhile, unemployment hovers above 10%, with youth unemployment (ages 15–24) nearing 20%.
A Future Built on Empty Homes?
While the construction boom reflects both ambition and diasporic pride, its economic impact remains limited unless these properties are actively used—as residences, rentals, or business hubs. For now, Kosovo’s cities continue to grow vertically, even as thousands of new windows look out onto empty streets and untapped potential.
The challenge ahead lies not in building more, but in making what’s already built truly matter.