The Romanian residential market has seen transactions falling by nearly 9% in the first four months of 2025 compared to the same period in the previous year. In Bucharest, the fall in deals reached 12%, according to data released by Colliers.
Several factors are contributing to this slowdown, including tighter access to credit, ongoing economic instability, and rising construction costs. .
Gabriel Blăniță, Associate Director | Valuation & Advisory Services at Colliers Romania, said: “Access to bank financing has also become more restricted due to high inflation and ongoing economic instability. The pressure is even more acute in the case of new apartments. The removal of certain tax incentives in January 2025 has driven up labour costs, narrowing developers’ margins and pushing housing prices even higher. At the same time, the shortage of construction workers is becoming increasingly apparent, particularly as infrastructure projects advance at a rapid pace.”
Following a nearly 20% drop in residential deliveries in Bucharest during 2024, 2025 shows no clear signs of recovery, despite a 9% increase in construction activity in Q1.
Colliers consultants anticipate that inflation will remain elevated in the medium term, hindering the central bank's ability to relax monetary policy. Consequently, the rental market is gaining increasing relevance as a more affordable and viable alternative for many prospective buyers.
In Bucharest, around 15% of residents currently live in rental housing, a percentage that is expected to rise in the coming years, aligning with trends observed in major European cities.
“While the decline in transaction activity reflects a period of adjustment, the fundamental interest in urban living remains strong. As a result, the market is expected to remain active, though at a more moderate pace, with an increasing focus on efficiency and affordability,” concluded Blăniță.
