Construction costs continue to rise in Albania/ Wages, transportation and machinery, the main factors that are making projects more expensive
The construction sector in Albania continued to face rising costs during the first quarter of 2026. According to the latest data from INSTAT, the Construction Cost Index reached 114.4 points, reflecting an annual growth of 1.1%, slightly higher than the 1.0% growth recorded in the same period a year earlier.
The increase in costs was mainly driven by labor costs. The “Wage costs” group recorded the highest increase at 4.8% compared to the first quarter of 2025, indicating that labor shortages and wage increases are continuing to increase construction companies' costs.
The increase in costs was also influenced by the “Other costs” group, with an expansion of 2.5%, transportation costs by 1.7% and machinery costs by 1.5%. Meanwhile, construction materials have followed an opposite trend, marking an average decrease of 0.9%.
Within the group of materials, the strongest decline was recorded in basic construction materials, which decreased by 1.4%, while hydro-sanitary and ventilation materials fell by 0.9%. In contrast, electrical and communication materials turned out to be more expensive, with an increase of 0.5%.
Even compared to the last quarter of 2025, construction costs continued to increase, albeit at a more moderate pace. The index expanded by 0.3%, mainly supported by the increase in the “Other costs” category by 1.7% and by the increase in wage costs by 0.6%.
The data shows that, while material prices are stabilizing and in some cases decreasing, pressure from labor, transportation and operating costs is keeping the sector's total costs rising. This situation is expected to continue to affect the final price of new construction projects and future investments in this industry.
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