🟦 Urban Agglomeration: Potential, Challenges, and Reflections for the Balkans and Albania

 By Luiza Hoxhaj

                                    

Today, over 4.4 billion people – or 56 percent of the world's population – live in cities, and this number is expected to double by 2050. This rapid trend of urbanization is closely linked to the phenomenon of urban agglomeration – the geographic concentration of economic activities and people in urban areas.

Agglomeration brings significant benefits: increased productivity, economic efficiency, and enhanced innovation. On the other hand, it also presents complex challenges such as rising living costs, overstretched infrastructure, territorial inequalities, and pressure on natural resources.

What is urban agglomeration?

At its core, agglomeration is the tendency of firms and individuals to cluster in a limited urban space to benefit from proximity. These benefits include knowledge sharing, shared labor and service markets, easier access to infrastructure, and a more dynamic climate for business growth.

However, agglomeration also comes with challenges. When cities grow faster than their planning and management capacities, issues arise such as:

• increased housing and rental prices,
• lack of affordable housing,
• increased pollution,
• heavy traffic congestion,
• pressure on public transport and green spaces,
• social and economic segregation.

Agglomeration in the Western Balkans context

In the Western Balkans, urbanization is shaped by internal migration, the "brain drain" phenomenon, and the unchecked growth of cities. This is creating fragmented urban structures, often marked by informality, with consequences for quality of life and opportunities for sustainable development.

Many cities in the region face two realities at once: economic growth and rising inequality. Urban centers – especially capital cities – attract investments, talent, and services, while peripheral and rural areas are being depopulated and economically marginalized.

Albania: between development and fragmentation

In Albania, the phenomenon of agglomeration is especially visible in Tirana and major coastal cities. Mass migration to the capital, lack of a clear policy for balanced territorial development, and the concentration of public and private investments in just a few areas have caused a dramatic demographic and economic shift.

Tirana is the most concrete example of this transformation, where the impact of agglomeration is clear: soaring real estate prices, increasing traffic, construction informality, and a marked rise in demand for public services and infrastructure.

Another illustrative case is the city of Vlora. Over the past decade, Vlora has entered an accelerated phase of development, driven mainly by tourism investments, the construction of the new port, and growing interest in coastal property. This seasonal and long-term demand for services, development land, and mobility is transforming Vlora from a city with clear urban boundaries into a continuously expanding zone. Urban agglomeration here is fueled by tourism, internal migration, and unregulated growth, putting increasing pressure on infrastructure, natural resources, and social cohesion. Without strategic territorial management, the city risks losing its natural and urban identity.

The way forward: from city marketing to city management

To benefit from the advantages of agglomeration and mitigate its downsides, urban policies must shift from a sole focus on “city promotion” to “city management.” This means:

• integrated territorial development,
• long-term and cross-sectoral planning,
• investment in quality, sustainable infrastructure,
• data-driven and decentralized decision-making,
• and inclusive governance models that foster cooperation between urban municipalities and surrounding areas.

Final thoughts

Urban agglomeration is not just a consequence of urbanization, but an opportunity for growth and transformation if managed with vision and responsibility. In the context of the Balkans and Albania, this means understanding the dynamics on the ground, learning from international practice, and placing people and territory at the center of development policies.

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💡 This article is part of a broader series of reflections on urban transformation in the Balkans. The next article will explore Vlora in greater depth and examine its current development challenges.