Construction slows in Q2 2026: what it means for home buyers in Albania

Yesterday, on 29 September 2026, INSTAT published its estimate of Albania's gross domestic product for the second quarter. The economy grew by 3.61%, but construction, for years one of the engines of growth, added only 0.15 percentage points to it. That does not mean home prices are falling. It means the market is moving more slowly. Below we explain what the figures show and how you can use them in your own decisions.

Cover photo: BBB2021 / Wikimedia Commons, CC BY-SA 4.0

The key figures

Economic growth in Q2 2026, compared with Q2 2025

3.61%

Construction growth in Q2 2026 (3.3% in Q1)

1.37%

Construction versus the first quarter, seasonally adjusted

−0.62%

Growth of real estate activities in Q2 2026

7.20%

Construction loses momentum

According to INSTAT, construction activity grew by 1.37% in the second quarter of 2026 compared with the same quarter last year and contributed +0.15 percentage points to economic growth. Three months earlier the picture was different: in the first quarter construction had grown by 3.3% and contributed +0.32 percentage points.

The comparison with the previous quarter, using seasonally adjusted data, points the same way. Construction fell by 0.62% in the second quarter, after a 0.26% fall in the first. That is two quarters in a row of slight decline.

Investment is slowing too. Gross fixed capital formation, the measure of investment in buildings, machinery and equipment, grew by only 1.76% year on year, down from 3.94% in the first quarter, and fell by 0.08% on the previous quarter.

Photo: Albinfo / Wikimedia Commons, CC BY 4.0

But property stays in the spotlight

The picture is not the same across the whole market. Real estate activities, which include rents and property-related services, grew by 7.20% in the second quarter. That is the second-fastest growth in the economy, after the group of public administration, education and health.

Foreign interest in property also remains high. According to Bank of Albania data reported by Ekofin on 25 September, foreign direct investment in real estate reached €609.6 million in the first half of 2026, 141% more than a year earlier. It made up about 53% of the €1.14 billion of foreign direct investment in the country.

Meanwhile, the Bank of Albania's real estate market survey, published on 23 September, showed home prices 10% higher than a year earlier but almost unchanged from the previous six months. According to the same survey, selling an apartment now takes 9.7 months on average, up from the 8.1 months reported before.

What this means for you

If you are buying a finished apartment. When sales take longer, sellers become more open to negotiation, especially for homes that have been on the market for a while. But prices are not falling, so don't expect big discounts. Compare the price per square metre with similar homes in the same area and look at the market data by city.

If you are buying off-plan. Slower construction is one more reason to follow the progress of the works and the delivery date. Tie payments to construction stages, not calendar dates, and ask for the contract to set penalties for delays. The main steps are in our guide to buying an apartment under construction.

If you are selling. A realistic price from the start shortens the time on the market. If you are not sure what your property is worth, start with our property valuation.

Before you make an offer

What buying costs beyond the price

The price of the apartment is not the only cost. The calculator below helps you estimate the extra costs of buying.

Apartments for sale in Tirana

Sources

• INSTAT: Gross domestic product, Q2 2026 (in Albanian), 29 September 2026
• INSTAT: Gross domestic product, Q1 2026 (in Albanian), 29 June 2026
• Ekofin: The economy grows 3.61% in the second quarter, administration and taxes give about 70% of the contribution (in Albanian), 29 September 2026
• Ekofin: 53% of foreign investment in Albania in the first half of 2026 went to real estate (in Albanian), 25 September 2026
• Top Channel: Home prices slow their rise but don't fall, more months needed to sell an apartment (in Albanian), 23 September 2026