Rising material costs, economic uncertainty put pressure on Romanian construction market - report

The Romanian construction market started 2025 under significant pressure, mainly due to rising material costs, uncertain public investment, and new fiscal measures affecting the labor force. While the sector remains highly active, the 4% decline in 2024 vs the record 2023 signals the first signs of a slowdown, according to Colliers’ annual report.

Construction material prices have returned to 2022 record levels, while a budget deficit of nearly 9% of GDP casts doubt on the future of large EU-funded projects, the same source said. Additionally, the removal of tax relief for construction workers is further straining companies in the sector, potentially leading to higher costs in 2025.