Where is the most built in Europe under Eurostat? Kosovo, Albania in the first two countries

Throughout Europe and the region, it is built, but in no country this sector is prospering as in Albania and Kosovo.

In a recent housing report, Eurostat has measured the size of the construction sector for all of Europe. This measurement is done through gross added value (VSHB[1]) generated by this economic activity as part of the V The US total (production in the economy without including taxes).

According to Eurostat, for the European Union, this percentage was between 5 and 6% in the period 2010-2022. The index was the highest at 5.8% in 2010, dropping to 5.1% in 2014-2017 and then again increasing to reach 5.5% in 2020, 5.4% in 2021 and 5.5% 2022.

Among Member States, part of V The US under construction fell to 14 Member States between 2010 and 2022, with the largest landing marked by Spain, Bulgaria and Cyprus. Among the growing member states of the construction sector during this period, Hungary, Germany and Lithuania showed higher growth.

In 2022, the largest member states were Austria (7.3%), Finland and Romania (both 7.0%), Eurostat referred.

The index is much higher for Albania. According to Eurostat, in 2022, construction in Albania reached 11.1% of the grossly added value, higher in Europe and twice as high as the European Union average.

Albania may be a developing country and has faced a strong demographic transition, but in other countries in the region, where such a cycle has been passed, construction accounts for very low weight in the economy. For example, Northern Macedonia had that indicator at 6.2% of the V BSH in 2022, Montenegro, which is a tourism-oriented country at 4.8% of VBSH, Serbia 6.6%, Bosnia and Herzegovina 5.2%

The only country that has “competes with” is Kosovo, which is displaying the same tendency as Albania with high construction in the capital and district. Construction occupied 10.7% of the grossly added value in Kosovo in 2022.

The index for Albania at 2022 was the highest since 2014, when it dropped to 9.9% of the VBSH, up from nearly 15% it had peaked in 2010. As a cyclical construction sector began the decline that began after the 1990 ' s, as a result of the population's internal shifts, where a considerable part of households addressed the central area. After 2014, however, he returned to the increase, led mainly by construction in Tirana and in tourist areas.

Tents are expected to follow, especially in the capital. In 2022 a record of residence construction permits in Tirana, of about 1.8 million square metres, according to INSTAT.

In 2023, Tirana City Hall estimates in the drafts that it expects to raise 7 billion dollars from the impact tax on infrastructure from new construction, from $5.5 billion, which was the original plan. The municipality says that the implementation of revenues from this tax exceeds the approved plan as a result of applications beyond expectations. In the period 2024-2026, about 6.5 billion dollars per year are expected to be collected from this tax, in a signal which the City Hall predicts to continue with the momentum of construction permits.

This trend is coming at a time that the population trend is towards contraction, due to ongoing high migration and the natural aging of the population. In 2022, the addition of the population in Tirana was lower in history, with fewer than 6 thousand people, from about 20,000 years ago.

Foreigners have become an important factor in real estate purchases, but their pace is expected to decline, following continued price expensiveness, which is narrowing the gap with other countries in the region, such as Croatia or Montenegro. Foreign investments in real estate for 9-month 2023 amounted to 222m euros, according to the Bank of Albania, with a slight decline of 1.3% compared to the same period last year, unlike 2022, when growth was two digits.