The construction sector, which for years has served as the unstoppable engine of the economy in Albania, seems to have reached the tipping point and started an unexpected dive. The most recent data from the Bank of Albania survey testify to an immediate drop in confidence in this sector during October 2026.
The Construction Confidence Index collapsed by -5.7 percentage points in a single month, marking the heaviest negative blow to the entire economy and curbing growth in the country’s Economic Sentiment Index.
New contracts collapse
Detailed data shows that the drop is being led by a drastic slowdown in new orders. The balance of ordering contracts fell, sinking from -15.0 percentage points in September, to -24.9 percentage points in October.
This decline is officially confirmed by the builders themselves on the ground. When asked about the factors that are limiting their activity, the percentage of firms directly complaining about “Insufficient Demand” increased to 45.93% in October (from 42.75% in September).
This proves that buyers are rapidly withdrawing from the real estate market. Even the current activity in the construction site has started to lose its pace, going down to 13.0 points.
This sudden drop in orders seems to have also broken the arrogance of prices in the market. Faced with the drop in demand, the builders themselves have lowered their expectations for the further increase in the price of apartments.
Expectations for future prices fell to 11.8 points, a strong signal that the market may be headed for a forced correction or stabilization.
Although the sector still stands above its historical average thanks to the aggressive growth of the past years, this month has given the first warning that the golden and intangible age of construction may be coming to an end./Capital
