Crisis-hit constructors shift investment plans to other sectors

TIRANA, June 8 – Representatives of some construction companies in Albania are seriously considering shifting investment plans in other sectors of the economy following a shrink in construction, local media reports.
Declining sales and rising costs are pushing construction entrepreneurs to invest in tourism, agriculture and agri-processing.
Constructors say the country has now overcome the emergency of homeless families and the housing market is being limited to sale of apartments only for new couples.
The construction sector was the hardest hit by the global economic crisis in 2009.
Construction, whose activity in the last quarter of 2009 shrank by 14.4 per cent compared with same period of 2008 and 11.8 per cent from the third quarter of 2009, suffered from lack of liquidity, according to INSTAT.
The construction cost index rose 0.1 percent year-on-year during the first quarter of 2010 and 0.2 percent compared to the previous quarter, data published by the Institute of Statistic shave shown. Direct expenses rose by 0.2 percent while material expenses by 0.3 percent compared to last quarter of 2009.
A recent report by the Municipality of Tirana said citizens in 2009 were more reluctant to buy new apartments because of falling revenues and especially a sharp decrease in immigrant remittances. This is confirmed even by data of the Albanian Association of Constructors which says some 4,000 apartments remain unsold because of falling purchasing power.