Tuesday, 8 September 2026
Romania’s residential market entered a slower phase during the first half of 2026, but the national figures conceal increasingly different conditions across the country’s largest cities. Apartment transactions declined by around 9% nationwide compared with the same period last year, according to Colliers, while activity remained above levels recorded before the pandemic.
Bucharest recovered considerably after a weak beginning to the year, ending the first half with apartment sales only around 2% below the corresponding period of 2025. The picture elsewhere was less consistent. Transactions dropped by approximately 16% in Cluj-Napoca and 11% in Iași, while Timișoara recorded growth of around 3%.
The divergence suggests that affordability, local pricing and the availability of suitable housing are becoming more influential in determining individual city performance. Inflation and relatively expensive mortgage financing are also encouraging households to examine purchases more carefully rather than simply following the broader direction of the market.
New housing supply remains constrained. Around 59,000 homes were completed across Romania in 2025, the lowest annual level since 2017, and Colliers does not expect a rapid improvement. Bucharest could eventually move in a different direction, however, after the authorised residential building area increased 3.6-fold during the first five months of 2026. Nationally, residential building permits declined by around 9% to 10% during the first half.
“We are not seeing a uniform decline across the market, but rather increasingly significant differences between projects and cities. Buyers are paying closer attention to what they receive for their money, while developers are becoming more selective about where and what they build,” said Gabriel Blăniță, Director, Valuation & Advisory Services at Colliers Romania.
Development costs are another constraint. Prices for several construction materials have started increasing again, while developers are having to consider potential additional costs associated with European carbon rules affecting imported materials. This is encouraging longer development planning and greater caution over the timing and positioning of new projects.
Demand nevertheless retains several supports. Colliers says around 58% of residential purchases involve mortgage financing, broadly unchanged from last year. Employment has also proved relatively resilient despite Romania’s weaker economic environment, limiting the kind of household shock that could trigger a more substantial housing correction.
Prices have consequently remained firm despite lower transaction volumes. By mid-summer, asking prices in Bucharest were around 9% higher than a year earlier, with a similar movement nationally. The difference is increasingly being seen at project level, however, as buyers distinguish between properties according to location, transport connections, energy performance, developer reputation and ongoing ownership costs.
“Price remains important, but buyers are paying increasingly close attention to the costs that come after the purchase, from energy and maintenance to time spent commuting,” Blăniță said. “This is why we are seeing growing differences between projects rather than a broad-based decline in prices.”
Higher borrowing costs are likely to remain a constraint. With inflation still elevated, Colliers expects the National Bank of Romania to maintain its key interest rate at 6.50% until 2027, postponing the prospect of a stronger mortgage-led recovery.
The longer-term development case remains supported by Romania’s housing requirements and restricted supply. In Bucharest particularly, future residential investment is likely to become increasingly connected with transport infrastructure. Metro expansion, tram improvements and better links between developing neighbourhoods and employment centres could influence where developers acquire land and where buyers are prepared to live.
Rather than moving into a nationwide correction, Romania’s residential sector is therefore becoming more selective. Bucharest’s improving development pipeline contrasts with weaker transaction activity in several regional cities, while projects offering efficient homes, infrastructure access and competitive overall ownership costs are increasingly separating themselves from the rest of the market.
