Tirana is expected to have another construction boom

Construction in the capital is expected to continue at a very high pace for at least the next two to three years.

INSTAT data revealed that in 2024, the area granted for construction permits in the capital reached over 1.9 million square meters.

This is the highest area ever given for construction for the capital, at least since 2005, when INSTAT reports data for Tirana.

Compared to the previous year, the area allocated for construction increased by about 36%, while it is also about 7% higher than in 2022, when the previous record of 1.8 million square meters was set.

By quarter, the highest area in 2024 was given in the third quarter with 684,845 square meters.

Other data from the Municipality of Tirana shows that in 2024, the Municipality of Tirana collected a record of around 13 billion lek (about 130 million euros), double what it had predicted at the beginning of 2024.

In 2024, about 52% of Tirana Municipality's revenue came from the infrastructure impact tax, creating a high dependence of the institution that manages the capital on construction permits.

Even in the coming years, at least until 2027, the Municipality of Tirana expects to collect around 8 billion lek per year from the construction tax, higher than in the period 2020-2022, when Tirana turned into a construction site.

The increase in income is expected to come, according to the Municipality's report, from the change in the average reference prices for the sale and purchase of buildings used for residential purposes, but also from the issuance of new construction permits, which are mainly multi-storey buildings, some of which are public-private partnership projects, where the state is providing its own properties for construction in exchange for a surface area for offices or other spaces.

According to the INSTAT announcement, in the fourth quarter of 2024, a total of 317 construction permits for new buildings were approved, up from 303 permits approved in the fourth quarter of 2023, marking an increase of 4.6%.

The area of ​​construction permits approved for new buildings in the fourth quarter of 2024 is 482,854 m2, down from 592,660 m2 approved in the fourth quarter of 2023, marking a decrease of 18.5%.

In the fourth quarter of 2024, the approximate value of construction permits approved for buildings and engineering works is 25.8 billion lek, up from 25.3 billion lek approved in the fourth quarter of 2023, marking an increase of 1.8%.

During 2024, a total of 1,336 building permits for new buildings were approved, up from 1,602 building permits approved in 2023, marking a decrease of 16.6%.

In 2024, the area of ​​construction permits approved for new buildings is 2,498,916 m², up from 2,115,819 m2 approved in 2023, marking an increase of 18.1%.

The approximate value of construction permits approved for buildings and engineering works is 106.4 billion lek in 2024, up from 89.6 billion lek approved during 2023, marking an increase of 18.8%./ Monitor