Builders expect fewer orders as new permits stay high

Confidence among construction companies fell in June as builders reported weaker expectations for new orders and slower growth in housing prices.

The construction confidence index dropped by 0.8 percentage points, mainly because companies gave weaker assessments of contracts and future orders. Current construction activity was almost unchanged.

For the third month in a row, more builders expected demand to fall than to rise.

Housing prices are still higher than a year ago, but their growth has slowed. In Tirana, prices were almost unchanged compared with the previous six-month period.

Construction activity remains high despite weaker demand signals. Local tax data suggest permits for about 2 million square metres of construction were approved in the first five months of the year, close to the full-year record set in 2024.