Key Issues of Mass Valuation for Compensation within the Land Restitution Process in Albania

Authors

• Aivar Tomson

Abstract

The aim of current research was to analyze the key issues of mass valuation for compensation within the land restitution process in Albania. The analysis was grounded on the case study of mass valuation system which was prepared to carry out mass valuation for compensation of illegally expropriated land. The "field study" was made by the author during 2005-­2006 within the frames of consultancy projects sponsored by World Bank and OSCE. The aim of those projects was to examine and improve the existing mass valuation methodology for compensation (Decision on the Approval of the Methodology on the Valuation of Immovable Property that Will Be Compensated and of the One to be Used for Compensation 2005). The author of the current research hopes that in co-operation with local specialists some progress was made. Unfortunately at the time of finalizing the current article (December 2007- March 2008) the existing mass valuation methodology for compensation without any principal changes was still in force. The research covered the majority of key issues of mass valuation ­ topics like the essence of mass valuation, time dynamics and external influences to valuation results were handled based on literature and presented as parts of the case study. The discussion section contained generalization and relationship with earlier research. The principal conclusions were the following: ­* partly following principles of market based valuation and distinguishing between valuation approaches for different land categories produce uneven valuation results and the system does not follow the principles of valuation level and uniformity ­ * absence of rules related to the time dynamics enables to act in a partial manner, so the system moves away from fairness ­ * external influences convert valuation to the part of political decision-making.