Tuesday, 20 October 2026
Residential construction across Central and Eastern Europe is showing increasingly different patterns, with some countries reporting more homes under development while others face a reduction in new projects. Statistics for the second quarter and first half of 2026 indicate that housing supply is not developing at the same pace across the region, raising questions about how individual markets will respond to future demand.
Slovakia recorded a significant slowdown during the second quarter, with 2,368 homes completed nationwide, more than one-third fewer than a year earlier. Approximately 2,400 dwellings entered the construction pipeline, also representing a substantial annual decline. The Bratislava region was particularly affected, while residential property prices increased by 16.2% compared with the corresponding period of 2025. The combination of fewer construction starts and higher prices raises concerns about the availability of new housing in the coming years.
Romania experienced a different development, completing 20,082 homes during the second quarter, an increase of approximately 47% from 13,647 a year earlier. Bucharest–Ilfov accounted for 6,946 completions, compared with 3,201 in the corresponding quarter of 2025. The substantial increase reflects the delivery of projects initiated in earlier years, although it does not necessarily indicate that developers are preparing a similar volume of new housing.
Romania’s building approval figures suggest that future construction activity could follow a different pattern. During the first six months of 2026, authorities issued 15,939 permits for residential buildings, down 9.6% annually. Bucharest municipality recorded an increase during the second quarter, with 127 permits compared with 92 a year earlier, but activity weakened during July and August. These figures measure approved residential buildings rather than individual apartments, making direct comparisons with dwelling authorisations in other countries inappropriate.
The Czech Republic reported stronger construction activity, with work beginning on 13,081 homes during the second quarter, an annual increase of 63.7%. Prague accounted for 2,788 starts, while 1,240 homes were completed in the capital, representing growth of 64.5%. National completions nevertheless declined, illustrating the differences between residential development in Prague and other parts of the country.
Poland also recorded improvements during the first half of 2026. Approximately 94,900 homes were completed, an increase of 3.2% compared with the same period in 2025. Construction starts rose by 3.5%, while the number of dwellings covered by building permits and notifications increased by 18.9%. The figures suggest that developers were preparing more residential projects, although the pace of future construction will depend on financing conditions and buyer demand.
Hungary reported 6,278 completed homes during the first six months of the year, compared with 5,129 in the corresponding period of 2025. The number of dwellings authorised for construction increased to 16,588 from 12,830. During the second quarter, 7,297 homes received approval and 3,457 were completed. Budapest accounted for 2,926 authorised dwellings and 1,269 completions, confirming the capital’s substantial contribution to national residential activity.
The differences between these markets demonstrate why housing supply cannot be assessed solely through property prices or the number of completed apartments. Homes delivered today often received approval several years earlier, while newly authorised developments may face delays before construction begins. Changes in borrowing costs, construction expenses, planning procedures and household purchasing power can all influence whether developers proceed with their projects.
The available statistics also require careful comparison because national authorities use different reporting methods. Some countries publish the number of homes covered by construction approvals, while others report the number of permits issued for residential buildings. Figures for capital cities may also cover wider metropolitan regions, particularly around Bucharest and Bratislava. These differences need to be considered when comparing residential development activity across national markets.
For developers and investors, the more important question is whether the current volume of residential construction will translate into sufficient housing over the next several years. A market can record increasing completions while approvals for future projects decline, potentially creating shortages later. Equally, an increase in authorised developments does not guarantee that construction will proceed immediately.
The latest figures suggest that Central Europe’s residential markets are entering different stages of development. Slovakia faces weaker construction activity, Romania is recording a substantial increase in completed housing despite fewer national building permits, and Poland, Hungary and the Czech Republic show improvements in selected construction indicators. Whether these differences lead to greater housing availability or renewed pressure on prices will depend on how consistently developers can bring new projects to completion.
Source: CIJ.World Research & Analysis Team
