The residential market in Bucharest started 2026 with an 18.6% decline in apartment transactions in January-February compared to the same period last year, while in Ilfov County the decline was 10.9%, according to an analysis by Crosspoint Real Estate,
These figures follow a 2025 in which the total transaction volume in the Bucharest–Ilfov metropolitan area had already dropped 8.5% compared to 2024, to 55,297 units, while prices for new units rose by 20%, reaching an average of €2,500/sqm.
"What we are seeing in the market now is the consequence of an accumulated permitting deficit over several years, overlapping with pent-up demand and a shifting regulatory framework," explains Oana Popescu, Head of Residential at Crosspoint Real Estate. "The residential projects we take on from the concept phase reflect an approach by developers. We are talking about fewer units, better positioned, with a product calibrated to the segments that better absorb cost pressure. This evolution has also been reflected in our portfolio mix, which has shifted toward middle-high and premium, segments that together now account for 80% of our residential consultancy activity."
The residential market entered 2026 with the most constrained pipeline in the past five years, with only 4,013 building permits issued in 2025 in the Bucharest–Ilfov area. At the same time, the 2% growth in deliveries recorded last year, reaching 17,293 newly completed homes in Bucharest–Ilfov in 2025, came in a context where the reduced 9% VAT rate was conditioned on apartment delivery by year-end. Additional pressure comes from the entry into force of Law 207/2025, which intervenes in a market that delivered less in 2025 than in any year during the 2019–2022 period.
"2026 is a year of recalibration, not crisis. Buyers who understand that new supply will remain limited over the next two years and that prices within Bucharest will not see declines have a decision window before the supply pressure becomes even more visible. The market has matured, and the purchasing decision has become more rational, focused on total cost and long-term quality," said Valentin Neagu, Managing Director of Crosspoint Real Estate. Romania recorded one of the sharpest increases in construction costs for new residential buildings in Europe, 9% in 2025, compared to 1% at the EU average.
