Construction sector has had a vigorous activity in recent years, this was also reported by the data of the Structural Survey of Enterprises of INSTAT. The number of companies has also increased significantly. 

According to INSTAT, in 2021, the total income of the sector reached a record of 329 billion lek, or almost 2.9 billion euros. Compared to the previous year, the income has increased by almost 20%. 

About one third of this sector is driven by public investment. According to data from the Ministry of Finance, capital expenditures, most of which go to finance roads or other public constructions, were about 127 billion lek in 2021, including funds for post-earthquake reconstruction. The rest comes from private investments, mainly in residential construction and less in tourism. 

Historical INSTAT data show that construction declined after 2011, reflecting the downward cycle, following the maturation of construction that was brisk in the first two decades of the transition. 

From 2015, the sector resumed rapid expansion, which also coincides with the rapid increase in the areas of construction permits granted by the Municipality of Tirana, where the largest concentration of companies' activity is. After a slight decline in 2019, coinciding with the steppe from the strong earthquake of November 26, the sector regained momentum in 2020, - although most of the economy stopped due to the pandemic -, and accelerated further in 2021. 

The trend has continued in 2022 and is expected to continue, based on construction permits. According to INSTAT, the area of construction permits granted by Tirana Municipality for the 9th month of 2022 is 1.46 million square meters. Compared to the same period of the previous year, the area provided for construction has increased by 16.7%. This is the highest level of permits ever issued for the capital, at least since 2002, when INSTAT reports the area of permits issued by county. 

The orientation of free capitals in construction, some of which may also come from informal sources, has significantly increased the number of companies operating in this sector. 

According to INSTAT, in 2021 there were over 5 thousand enterprises focused on this economic activity, with an increase of 17% compared to 2020. In that year alone, 741 new firms were opened, which is the highest number since 2011. 

Construction continues to be one of the most profitable sectors in the country, with a rate (net profit/total revenue) of 11.5%. 

Although increasing, the profit rate remains lower than in 2010-2021, when it approached the level of 19%. 

In value, companies earned 37 billion lek (about 315 million euros) in 2021, marking a historical record, at least since 2010, when INSTAT reports the data. 

(Source: Monitor)