Land rights tricky issue as Albania poll nears

Fatmir Murati liked the patch of public land across the street from his apartment so much, he built a house there. Speckled with lemon and orange trees, the terrain is a political battleground.

The fact that thousands like him have no clarity about who owns what land is a legacy of the longest-lasting Stalinist regime in Europe. It's also a major campaign topic as Albania, an emerging democracy that aspires to join the EU, heads to the polls at the end of this month.

Both Sali Berisha, the country's dominant political figure since Communism's fall in 1991, and Socialist challenger Edi Rama say land titling is a priority as Albania seeks foreign investment.

In April the country became Nato's 28th member, after a tumultuous 1990s including a crime wave, marred elections and a dip into anarchy. Many Albanians lost their savings in pyramid schemes and up to 3,000 were killed in the ensuing violence.

Clarity would encourage capital to develop industry and the rich tourist potential of the country just north of Greece along the Ionian and Adriatic Seas. Its Gross National Income per head of €5,240 by purchasing power parity, put Albania below Suriname and above Peru in 2007, according to World Bank figures.

Mr Murati says he is trying to legalise his ambitious development site, but answers to the election's outcome will likely come sooner than clarity over who holds the title.

"None of us have permission to build," he said as he showed off an area where he hopes to put in a swimming pool. "But until now I have not had any problem with the municipality."

The 51-year old estimates it will cost him about €14,000 to legalise the land he has staked out since 1994. With rental income from his rooms just €12 to €20 a night, he relies on remittances from his two sons in Greece of about €3,000 a month to help fund construction work.

"This is a major, major problem, especially for the direct investor," said one diplomat, speaking on condition of anonymity because his comments were critical of the system. "Who is going to set up concessions for foreign factories when they don't know the deed is theirs?"

Despite its urgency, politicians tread lightly on the topic as many people lack proper permission to build. Experts say there are no reliable figures but those who have built without permission probably exceed those with old property claims.

Under Stalinist Communism, private ownership of land, cars and boats was forbidden. When the old regime collapsed in 1991, many grabbed what they could after decades of deprivation.

Central bank governor Ardian Fullani says land title reform is essential: "Without title to the land, all of the other things will be very, very difficult," he was quoted as saying last September, before the campaigns started.