Construction cost is rising; an increase in prices is expected

Construction of properties in Albania is becoming more and more expensive and this acts as a warning for a new rise of their price in the final stage. This is suggested by the latest figures published by the Institute of Statistics, according to which, construction cost in the country has recently seen a rise.

“The construction cost index in the third quarter of 2018 was 103.6%, registering an increase of 0.5% compared to the third quarter of 2017”, experts of INSTAT say on this. Meanwhile, this increase was mainly caused by the increase in transport costs. “Compared to the same quarter a year ago, transport costs increased by 2.5%”, experts add, explaining that there’s also been an increase in the cost of labour for construction workers and miscellaneous costs, namely 2.1% and 0.9%. “Meanwhile, a decrease of 0.2% has been registered by material costs”, INSTAT experts also say. According to them, despite the drop in these costs, construction in the country continues to be an expensive activity, which means that an increase of the price of properties is expected to take place in the months to come, while construction companies will have paid more money out of their pockets to enable these construction projects. This has also been signaled by entrepreneurs working in this sector. According to them, as if this was not enough, they also have to put up with tax increases.