The pace of sales in the construction sector has slowed down in 2023. According to the data that INSTAT has collected on construction companies, the volume of sales has decreased compared to previous years. Thus, in the fourth quarter, the volume of construction sales increased by only 1% from the 16% that was the increase in the last quarter of 2022. Even during the rest of the year, the growth rate of volume sales was more low.
But, despite this, the construction sector continues to boom in terms of permits and construction work.
The real estate market in Europe is in a stationary phase due to the decline in demand, as the war in Ukraine has created a negative psychological effect for investment in real estate.
Despite the slowdown, local builders remain optimistic. After a drop of 8 points in January 2024, the construction confidence indicator measured by the Bank of Albania increased by 6.8 percentage points in February.
The increase this month was largely driven by better estimates for current construction activity. In parallel, expectations for future employment and prices are rising.
