A Harvard graduate from the small Vetevendosje, or self-determination, Party became the new mayor of Pristina, the capital of Kosovo, in a surprise election victory, Kosovo's Central Election Commission announced on Monday.

Shpend Ahmeti prevailed in a run-off against current mayor Isa Mustafa, the leader of main opposition Kosovo Democratic League (LDK). Mustafa was seeking his third term.

The overall process was peaceful without major incidents, according to European Union observers deployed throughout Kosovo. Voting was organised in eight Serb-dominated municipalities, including four in northern Kosovo.

Other unexpected results were observed as parties formed by former leaders of Kosovo Liberation Army lost ground in former strongholds.

The opposition LDK was the biggest winner of the elections. However, the defeat in Pristina, their first in 13 years, hit them hard.

Municipal elections are seen by many as a test for the general elections scheduled for autumn next year.

Kosovo unilaterally proclaimed independence from Serbia in 2008. Serbia refuses to accept Kosovo's independence.