Tuesday, 3 March 2026
Residential deliveries and transaction volumes in Romania declined modestly in 2025, but overall demand remained above pre-pandemic levels, according to Colliers’ latest annual review. The market entered 2026 facing moderate upward pressure on prices amid limited new supply.
The consultancy estimates that both housing completions and sales fell by roughly 5 percent last year compared with 2024. Total deliveries dropped to below 58,000 units, marking the lowest annual output since 2017. Despite the slowdown, transaction volumes remained about one-fifth higher than the average recorded before the pandemic.
In Bucharest, demand weakened more noticeably than at national level, with transactions declining by close to 10 percent year-on-year. Even so, activity in the capital still stands significantly above pre-2020 levels and continues to attract the largest share of new development.
Across the country, supply trends were uneven. Most regions recorded declines in new completions, while Bucharest and Ilfov saw a slight increase. Current delivery levels in the capital region remain more than double the average seen in the decade prior to the pandemic, whereas output in the rest of the country sits marginally below long-term norms. Permit data suggests the development pipeline will remain limited in the near term.
Market conditions in 2025 were shaped by high borrowing costs, persistent inflation and higher VAT on residential transactions. Even so, mortgage-financed purchases rose to around 58 percent of total transactions, indicating that buyers have adjusted to the tighter financing environment.
Colliers notes that demand performance varied during the year. Activity started slowly, strengthened during the summer months — including ahead of the VAT increase, and stabilised toward year-end. The firm attributes the market’s resilience partly to longer-term income growth, noting that average purchasing power has expanded substantially over the past decade despite more recent pressures on real wages.
Residential prices in major cities increased by roughly 5 percent on average in 2025. However, the gap between projects has widened. New homes in well-connected locations with strong energy-efficiency standards recorded firmer price growth, supported by financially stable buyers.
Energy costs are also becoming a more significant factor in purchasing decisions. Older residential stock, particularly buildings that have not undergone thermal upgrades, is facing closer scrutiny from buyers who are increasingly comparing long-term operating costs with those of newer developments.
In certain competitive areas or in projects launched during periods of weaker affordability, developers have introduced targeted incentives such as negotiated discounts, flexible payment terms or bundled parking. Colliers emphasises that these measures remain selective and do not indicate a broad market correction.
Looking ahead, the consultancy considers the residential sector to be underpinned by structural demand, noting Romania’s relatively high overcrowding rate within the European Union. A meaningful price decline would likely require a clear deterioration in labour market conditions and sustained pressure on household incomes, developments that are not currently evident.
For 2026, Colliers anticipates a broadly balanced market, with the potential for improved momentum in the second half of the year if economic conditions stabilise and financing costs begin to ease.
