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Construction cost growth slowed in the second quarter, only 1.1%

2025-09-03 20:44:00, Ekonomi CNA

Construction cost growth slowed in the second quarter, only 1.1%

Costs in the construction sector have curbed growth rates in the second quarter of 2025. According to INSTAT data, the annual change in the Construction Cost Index in April-June is 1.1%, a year ago this change was 2.5%.

According to official data, the increase in costs is being driven by wage costs, while there is a decrease in materials needed in the construction process.

Compared to the same quarter of the previous year, the largest price increase is observed in the group "Salary expenses" with 6.2%, followed by the groups "Other costs" with 2.3%, "Machinery expenses" with 2.2%, "Transport expenses" with 1.4%, etc.

On the other hand, the group “Material Expenses” marked a decrease of 0.7%. Within the group “Material Expenses”, the index of the subgroup “Electrical and communication materials” marked the highest decrease of 1.8%, followed by the groups “Construction materials” with 0.6% and “Hydro-sanitary and ventilation materials” with 0.4%.

In April-June, the Construction Cost Index increased by 0.4%, compared to the first quarter of 2025. The largest price increase was observed in the "Salary Expenses" group with 1.6%, followed by the "Machine Expenses" and "Transport Expenses" groups with 0.5% each, respectively, and "Other Costs" with 0.3%.

On the other hand, the group “Material costs” has marked a decrease of 0.1%. Within this group, the subgroups “Construction materials” and “Electrical and communication materials” had decreases of 0.1% each. Meanwhile, the subgroup “Hydro-sanitary and ventilation materials” marked an increase of 0.3%.

For the Construction Cost Index, prices for construction materials are collected from 237 distributors and wholesalers of construction materials. Meanwhile, data on expenses for wages, machinery and transport are taken from 97 large construction companies concentrated mainly in the Tirana district. The selection of companies was made based on the volume of construction they carry out over a one-year period./Monitor.al





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