Construction costs rise for the fourth quarter in a row: INSTAT

Construction costs rose for the fourth quarter in a row. According to data from the Institute of Statistics, housing construction cost index for the second quarter of 2017 increased by 0.8% over the same period a year earlier.

For the second quarter, growth is slightly lower compared to 0.9% in the first quarter.

Although still in modest value, the rise in construction costs is steadily rising for the first time since 2013.

Growth, however limited, has been largely determined by the group of material expenditures, but also by a higher increase in wage expenditures.

In particular, the item of wage expenditures recorded an annual increase of 2.5%. This is the highest growth registered in the last four years.

Material costs expenditures for the second quarter recorded an increase of 1.6%, as in the previous quarter.

This quarter, the increase was due to the rise of prices in construction materials, while a balancing effect gave rise to cost savings for electrical and hydro-sanitary materials.

Transport costs still have a negative contribution to the index, but the decline is narrowing on a quarterly basis.

For the second quarter 2017, transport costs fell by 1.5%, down from 2% in the previous quarter.

Although construction costs are rising, this growth is still too weak to cause pressure on rising housing prices from the supply side.

The real estate market has somewhat revived in the last two years, backed by improved economy and the easing of bank lending.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.