Investments in construction are oriented towards tourism/ Fewer permits for housing, but the number and value of hotels are increasing
Over the past few years, the real estate market in Albania has undergone significant changes, dictated by economic and urban developments in the country. While the average sales price in the market varies significantly from one area to another, “Scan Intel” has chosen an alternative approach, making a simple calculation based on official data on building permits and construction type.
According to the figures, we see that in the first three months of the current year, the number of construction permits has decreased by 17% and a decrease is also observed in terms of the total area foreseen for construction in the same period.
However, despite the decline in the above indicators, it turns out that the approximate value of approved projects (which includes both buildings and engineering works) reached 20.1 billion lek, marking an increase of 47.6%, compared to the previous year.
However, if we analyze these indicators by type of construction, a decline is again observed in the approximate value of residential construction. According to official data analyzed by “Scan Intel”, in the first quarter of the current year, the approximate value of approved residential construction permits is estimated at around 8.1 billion lek, from 9.5 billion in the same period last year.
The decline in the value of residential construction, while the value of total buildings has increased, may be a sign of a shift from housing construction towards larger infrastructure projects or multifunctional complexes.
During the first quarter of 2025, we have a significant increase in the value of hotel construction and similar projects, reflecting the need for structures as a result of the good performance of tourism. The value of permits issued for this type of construction is estimated at 2.9 billion lek, up from 980 million a year earlier, with an increase of 200%. The number of building permits for hotels has also increased.
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