Over the past two decades, Kosovo’s diaspora has invested more than €9 billion in the purchase of apartments and houses. According to the Kosovo Business Alliance (AKB), this massive inflow of capital has been largely directed into real estate, which the organization describes as “dead capital” for the country’s economy.
Diaspora’s Investments: A Misguided Path?
In its latest statement, AKB expressed deep concern over how diaspora funds are being channeled. Data shows that during the last twenty years, diaspora members have purchased around 180,000 apartments in Kosovo.
“These are colossal amounts, but transformed into dead capital that generates neither jobs, nor economic growth, nor new revenues for the state,” the AKB noted. “This clearly shows that the Government of Kosovo lacks a clear strategy to channel remittances and diaspora savings into productive sectors.”
Without adequate incentives, security, or business-friendly policies, Kosovo’s diaspora continues to see real estate as the safest choice—leaving behind lost opportunities for building circulating capital that could drive the economy forward.
The Cost of Empty Apartments
The AKB also raised alarms about the chaotic construction sector. Statistics indicate that over 75% of buildings in Kosovo lack construction permits, while more than 182,000 apartments remain empty, many purchased by diaspora families but left unused.
“This trend highlights the absence of proper development policies and urban planning. Instead of fueling production, exports, and job creation, diaspora capital is locked in empty apartments. We risk building ghost cities, while young people emigrate in search of better opportunities,” warned AKB President Agim Shahini.
Government Responsibility and Call to Action
According to the AKB, responsibility lies both with the government and the diaspora itself.
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The government has failed to create safe, transparent, and attractive conditions for investment in productive sectors.
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The diaspora has not fully used its potential to contribute to long-term development by investing in industries such as manufacturing, technology, services, and agriculture.
AKB calls for:
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A clear national strategy for channeling diaspora remittances into productive investments.
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Real incentives for businesses, exports, and innovation.
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Transparent legalization of unauthorized constructions.
Shocking Numbers Behind the Housing Boom
Data from the Kosovo Agency of Statistics (KAS) paints a striking picture:
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Kosovo, with about 1.6 million inhabitants, has around 590,000 housing units.
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More than 96% of families own their homes.
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Over 182,000 dwellings remain vacant, including unfinished or unsold apartments.
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Nationwide, more than 352,000 buildings have been constructed without permits, with over 46,000 in Prishtina alone.
A Fork in the Road
Kosovo’s housing boom may seem like a success story, but in reality it reflects structural economic weaknesses. Instead of fueling sustainable growth, much of the diaspora’s money sits in unused apartments—capital that could have been invested in new industries, jobs, and exports.
Unless urgent steps are taken, Kosovo risks a dangerous imbalance: a country full of empty apartments but lacking economic dynamism and opportunities for its youth.