Builders’ costs have decreased in the second 3 months of the year. They have dropped to 4.7% from 6.2% last year.

Construction costs decreased in the second quarter of 2023. They decreased to 4.7% from 6.2% last year. The general drop in inflation has also affected the chain of all expenses that go to construction.

According to the Institute of Statistics, machinery, energy and transport costs are part of the group that has had the greatest impact on cost reduction.

Housing construction costs experienced a strong increase last year, making it difficult to implement public projects, for which companies had signed contracts and had not completed them.

However, the reduction in construction costs has not been reflected in the real estate sales market, where their prices, especially in Tirana and the Coast, have experienced strong double-digit growth.

The data forwarded by INSTAT for the construction cost index are 3-months, and they broadly reflect the prices in the sector, from construction materials, employee salaries, transportation expenses or even other costs that construction companies have.