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Construction Cost Index rises 1.1% year-on-year in first quarter

TIRANA, June 4 /ATA/ – Albania’s Construction Cost Index rose 1.1% in the first quarter of 2026 from a year earlier, driven mainly by higher labour costs, according to data published by the National Institute of Statistics (INSTAT).

The increase was led by a 4.8% rise in wage-related expenses. Other cost components that recorded annual increases included “other costs”, up 2.5%, transport expenses, up 1.7%, and machinery costs, up 1.5%.

Material costs, however, fell 0.9% compared with the first quarter of 2025.

Within that category, construction materials posted the sharpest decline, down 1.4%, followed by plumbing, sanitary and ventilation materials, which fell 0.9%. Electrical and communications materials rose 0.5%.

On a quarterly basis, the Construction Cost Index increased 0.3% in the first quarter from the previous quarter, INSTAT said.

The quarterly rise was mainly driven by a 1.7% increase in “other costs” and a 0.6% rise in wage expenses. Machinery and transport costs each increased 0.3%.

Material costs edged down 0.2% from the fourth quarter of 2025, reflecting declines of 0.8% in plumbing, sanitary and ventilation materials and 0.4% in construction materials. Electrical and communications materials increased 0.2%.

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