Wednesday, 15 July 2026
Apartment transactions in Bucharest declined by 2% during the first half of 2026 compared with the same period last year, according to data analysed by property consultancy Colliers.
The result followed a weak start to the year but was better than the national market, where apartment transactions fell by 9%. Colliers attributed the subdued activity to inflation, high borrowing costs and pressure on household incomes.
Performance varied across Romania’s other large cities. Transactions fell by 16% in Cluj-Napoca and by 11% in Iași. Timișoara recorded a 3% increase.
Colliers did not identify the original transaction datasets or provide a detailed methodology in its announcement.
The net floor area authorised for residential construction in Bucharest increased 3.6-fold during the first five months of 2026, the strongest increase reported in five years.
Higher permit activity may result in additional housing supply over the next two to five years. However, permits do not necessarily lead to construction, and projects can be delayed by financing, planning procedures and building costs.
Colliers said developers were reviewing new projects after several years in which Bucharest’s development pipeline was constrained by permitting delays and uncertainty over construction costs.
Mortgage-financed purchases accounted for approximately 58% of transactions, broadly unchanged from last year. Although borrowing remains expensive, mortgages continue to finance more than half of apartment purchases.
Colliers said housing prices generally continued to rise at a slower rate than inflation. Wages followed a similar pattern, leaving overall affordability largely unchanged.
Buyers are paying closer attention to the total cost of ownership, including financing, energy use, transport and maintenance. Location, construction quality and access to services are also influencing purchasing decisions.
Registered transactions could increase temporarily in July as buyers complete purchases that remain eligible for a reduced value-added tax rate.
The concession applies under specified legal conditions to buyers who signed preliminary sale agreements by August 1, 2025. Colliers said a similar tax-related effect brought forward transactions last year.
Any increase linked to the deadline would not necessarily indicate a broader change in market conditions.
Colliers expects Bucharest’s metro expansion, tram upgrades and road projects to affect the relative demand for different neighbourhoods. Better connections between peripheral or semi-central districts and employment centres could make some areas more suitable for residential development.
For developers, the consultancy expects sales performance to depend increasingly on pricing, transport access, energy efficiency and proximity to essential services. Projects that do not correspond closely to buyers’ budgets may require changes to pricing or commercial terms.
The near-term outlook remains linked to inflation and interest rates. Colliers does not expect a clear economic recovery before 2027, although it said planning and permitting activity during 2026 could prepare the market for a later increase in development.
Limited supply and previous permitting delays could continue to place upward pressure on prices in well-connected locations, according to the consultancy. This forecast remains subject to changes in financing costs, household incomes and the wider Romanian economy.
