Construction is becoming more expensive, apartment prices have increased by 39% in 6 months

2022-12-05 15:51:55Biznes SHKRUAR NGA REDAKSIA VOX
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Construction costs have increased significantly. The data of the Institute of Statistics show that in the third quarter the Construction Expenditure Index reached 109.4%.

As an annual report, construction costs have increased by nearly 5%, reflecting changes in global markets.

The biggest increase was found for electricity expenses with 15.5% more than compared to the same period of the previous year.

Other groups such as those for construction materials as well as those for machines used in this sector have also seen significant tightening. Even the costs for transportation have increased in the third quarter of the year as a result of the increase in fuel prices, while INSTAT statistics also speak of an increase in expenses for workers' payments.

As construction costs increase, the increase in the price of apartments, on the other hand, is even faster. According to the data of the Bank of Albania, during the first 6 months of the year, the prices of apartments in the country increased by almost 39% more than last year, while in Tirana the increase was even higher.

The expectations are that the increase in prices will continue even further according to the survey of the Bank of Albania, where although the indicator of confidence in construction fell in October, influenced by construction activity and ordering contracts, builders are still optimistic about the increase in prices even in the months following.

Faced with this momentum of construction and the real estate market in the country, the opportunities to buy a home at favorable prices and in a shorter time are becoming increasingly narrow./TCH