Construction costs: Slow rates of growth in Q1

Housing construction costs in Albania are increasing at slow, but steady rates.

According to data from the Institute of Statistics, in the first quarter of this year, expenditures increased for the seventh quarter in a row.

Compared to Q1 2017, housing construction costs 0.5% more.

Though still in modest value, construction costs are steadily rising since mid-2016.

The increase in the first quarter of this year came especially from higher spending on wages and transport costs.

Expenditures on the construction of businesses for the wage fund increased by 1.7%, while those for transport by 2.1% compared to the previous year, which were mainly influenced by higher fuel prices.

Increase in wage and transport costs, however, was balanced by a lower increase in material expenditures, which is also the main item in building activity.

For the first quarter, spending materials increased by 0.5% compared to the previous year.

Cost increase in housing construction is too weak to exert significant pressure on rising sales prices.

According to the Housing Office, the construction cost in Albania is between 32 and 33 thousand leks per m2, with small differences between different municipalities.

The average selling price of apartments in the capital is over 700 euros per m2, or about three times the cost.

SCAN

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