TIRANA, February 26
Albania’s construction sector saw significant growth in the fourth quarter (Q4) of 2020, as the number of new building permits increased by 51.5% compared to the same period in 2019. The Institute of Statistics (INSTAT) reports that 306 new permits were issued during this period, highlighting a surge in construction and real estate development across the country.
Key Highlights from the INSTAT Report
The number of newly issued permits for new buildings during the fourth quarter (Q4) of 2020 rose by 51.5%, according to the Institute of Statistics (INSTAT) in its latest publication. Based on the data, 306 building permits were issued in Q4 2020, a significant increase from 202 permits in Q4 2019.
Further analysis shows:
- Total approved construction area: 554,325 square meters, or 2.3 times more than in Q4 2019.
- Estimated value of new permits: Lek 28.9 billion, marking a 2.5x increase compared to Q4 2019.
This surge in construction permits reflects growing demand for housing, commercial spaces, and infrastructure projects in Albania.
Annual Comparison: 2020 vs. 2019
Despite the strong growth in Q4, Albania’s overall construction activity in 2020 experienced a mixed trend:
- Total permits issued in 2020: 961 permits, down 12.2% from 1,094 in 2019.
- Total approved construction area: 1,608,211 square meters, a 20.5% decrease from 2019.
- Estimated value of new permits: Lek 76.6 billion, compared to Lek 80.8 billion in 2019, marking a 5.2% decline.
These figures suggest that, while Q4 2020 showed strong recovery, the construction sector faced some challenges earlier in the year.
However, the report shows that the total number of new permits issued in 2020 rose by 12.2 percent compared to 2019, while the floor area declined by 20.5 percent. At the same time, the estimated value of the new permits declined from Lek 80.8 billion in 2019 to Lek 76.6 percent in 2020.
Capital city Tirana had the most new construction permits over the 2020 quarters. The list continued with Durres, Elbasan, and Fier.
Source: INSTAT