Pristina, Kosovo, February 16, 2022—A new IFC advisory project is supporting the government of Kosovo in scaling up affordable housing in the country, helping to improve lives for residents and boost inclusive long-term development.
Ary Naïm, IFC's Regional Manager for Central and Southeast Europe and Liburn Aliu, Kosovo`s Minister of Environment, Spatial Planning and Infrastructure. Photo credits: Ministry
IFC's team will work with the government on conducting preliminary research for the project, which will include a high-level market assessment and feasibility analysis, and technical and legal analyses. The team will also explore the sustainability of land sites selected by the government, compare affordable housing projects in other countries to provide guidance, and develop a range of implementation models to best leverage public resources.
According to a 2018 survey, more than half of Kosovo's 1.8 million residents struggle with housing costs. Housing options are limited, in part because a quarter of Kosovo's housing stock was destroyed during the conflict in the 1990s.
Although the real estate and construction sectors are now thriving, much of the legal housing stock is geared towards high-end apartments, with not enough affordable housing to meet demand. A poor regulatory environment has exacerbated the situation. To alleviate the issue, a new government elected in March 2021 has made affordable housing a priority.
"Our aim with this project is to address one of the most pressing needs of our citizens, which is affordable housing," said Liburn Aliu, Minister of Environment, Spatial Planning and Infrastructure. "Enabling our people to own good quality housing at affordable prices will not only improve their quality of life, but will also help foster economic development and sustainable growth in the Republic of Kosovo."
The government's plans are for 4,000 modern affordable housing units, built sustainably and initially geared towards public sector employees. IFC's team will also undertake a holistic analysis of Kosovo's affordable housing market to provide guidance to help expand this number.
The project is closely aligned with the World Bank Group's Country Partnership Framework for Kosovo, which focuses on boosting sustainable, inclusive growth by providing citizens with more opportunities for a better life.
"Providing adequate affordable housing options is critical—not just for providing shelter, safety and jobs for residents, but for their indirect benefits such as better health and gender outcomes," said Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "This project is very much in line with IFC's strategy to address issues with the supply and demand of affordable homes, especially in rapidly urbanizing cities, and help catalyze economic development and job creation."
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IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
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