New housing completions and the number of transactions in Romania declined by approximately 5% in 2025 compared with the previous year. Deliveries dropped to their lowest level since 2017, but sales volumes remained around 20% above the pre-pandemic average, according to the annual report published by Colliers.

In Bucharest, the decline in demand was more pronounced than the national average, yet the capital continues to attract the largest number of new developments and the bulk of market interest. Despite high interest rates, persistent inflation, and the increase in VAT for residential transactions, the share of purchases financed through mortgage loans rose to approximately 58% of the total. 

With limited supply and few building permits issued for new projects, the gap between demand and supply continues to support moderate price growth in an increasingly selective market, where location, project quality, and financial affordability are the key factors.

At the national level, total deliveries are estimated at below 58,000 units in 2025, the lowest volume in the past eight years. The dynamics, however, differed from previous years: while most regions recorded declines, Bucharest and Ilfov saw a slight increase in completions.

At present, supply in Bucharest - Ilfov is more than twice the average recorded in the decade before the pandemic, while in the rest of the country, deliveries are slightly below the historical average. Data on building permits indicate a limited pipeline for the coming period, suggesting that supply is unlikely to increase significantly in the short term.

On the demand side, performance was uneven throughout the year. Bucharest recorded an almost 10% decline in transactions, sharper than the national average, yet it remains approximately 28% above the pre-pandemic average level. Cluj-Napoca was the only major city to register a slight increase in transactions. 

Overall, although the economic backdrop was challenging, the market demonstrated resilience, supported by still-solid demand in major urban centers. Collier’s consultants say that this capacity to adapt is also linked to income developments in recent years: even though real wages temporarily returned to negative territory, this follows a decade in which the purchasing power of the average salary almost doubled, continuing to underpin appetite for residential acquisitions.

“Although transactions declined slightly, the overall level does not point to a weak year for the residential market, given that volumes remain significantly above the recent historical average. In fact, 2025 was a year of varying momentum: it started more slowly, accelerated during the summer - including amid the VAT increase - and stabilised towards the end,” explained Gabriel Blăniță, Director of Valuation & Advisory Services, Colliers Romania.

In major cities, prices increased on average by around 5% in 2025, although differences between segments have become more visible. Well-located new homes, with good infrastructure, easy access, and high energy-efficiency standards, recorded stronger growth, Collier’s consultants note, supported by a stable base of financially solid buyers.

The gap between new and old housing is no longer merely one of purchase price, but also of subsequent costs, particularly in the context of higher energy prices. At the same time, the ageing housing stock, especially buildings without thermal refurbishment, is being scrutinised more closely by buyers, who factor in the long-term budgetary impact of utility bills and energy efficiency.

In areas with intense competition or in the case of projects launched at a time when purchasing power was under pressure, isolated adjustments have emerged: individually negotiated discounts, more flexible commercial packages, parking spaces included, or tailored payment terms. These adjustments are largely negotiated on a case-by-case basis and do not signal a generalised market correction, according to Colliers.

radu@romania-insider.com

(Photo source: Cateyeperspective|Dreamstime.com)