Romania’s construction works up 30% y/y in January on low base

The volume of construction works in Romania marked an outstanding annual advance of over 30% y/y in January, driven by the good weather that allowed infrastructure projects to continue at a high pace (+33.8% y/y), but also by the low base effects in the residential segment where the reported activity was unusually weak in the first months of 2024, according to data published by the statistics office INS.

The construction activity is seasonally low in the first quarter of the year, and the January figures will probably not have a big impact on the overall performance of the construction works volume, which is expected to rebound this year after the 5.6% y/y contraction in 2024.

In the residential segment, which plunged by 22% y/y in 2024, the 71.2% y/y advance in January follows a 54.3% y/y contraction in January 2024. The activity is particularly low in this segment during the first months of the year, and new reporting requirements were enforced in 2024, possibly resulting in under-reporting during the first months. Nevertheless, the segment has underperformed during the entire 2024 year amid still high interest rates.

The work volume in the non-residential construction segment increased more moderately by 6.8% y/y, reflecting mixed dynamics of the sub-segments (office, industrial, logistics, and retail). In 2024, the segment as a whole generated 8.0% y/y lower volume of activity.

The engineering works remain under the effect of budget-funded infrastructure projects despite the modest 2.0% y/y advance in 2024, which followed an impressive 32% y/y surge in 2023. The 33.8% y/y advance in January 2025 keeps the activity in the sector at a level superior to that seen in 2024.

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