Colliers: Construction activity in Romania grew by approximately 12% in H1 2026 on public investment
The volume of construction works in Romania increased by approximately 12% in the first five months of 2026 compared with the same period last year, supporting the country’s economic growth, according to Colliers’ report on the real estate market in the first half of 2026.
However, the market continues to be driven largely by public investment, and the second half of the year is set to bring greater risks, ranging from rising costs and increasing pressure on contractors’ cash flows to political uncertainty and concerns over the absorption of European funds, according to the same analysis.
The strongest growth came from the residential sector, where the volume of construction works increased by approximately 16%, and from infrastructure projects, which rose by around 14%. These include works on roads, railways and hospitals and continue to account for more than half of total activity in the sector.
The non-residential segment grew more slowly, by approximately 6%, against a backdrop of persistently expensive financing and greater caution among private investors.
Even so, the construction market is currently operating at almost twice the level seen before the pandemic. The Colliers report stresses that these increases measure the actual volume of works and the intensity of activity on construction sites, rather than the financial value of investments. In other words, the 12% increase shows that significantly more construction work is being carried out, rather than merely reflecting higher project costs.
”More than half of activity comes from state-funded projects, and the key question for the months ahead is whether these investments can continue at the same pace. The stakes are even higher for projects dependent on European funding, where any delays can quickly be felt across the market,” said Alexandru Atanasiu, Partner | Head of Construction Services.
Over the past decade, the volume of construction works in Romania has almost doubled, while the European Union average has increased only marginally. Infrastructure investment explains a significant part of this performance. Romania has gone from approximately 900 kilometres of high-speed roads before the pandemic to more than 1,400 kilometres at the beginning of 2026, while over 1,000 kilometres are in various stages of construction and a further approximately 300 kilometres are in the planning phase.
At the same time, costs are beginning to put renewed pressure on construction companies. Prices for several materials have started rising again, while some raw materials are approaching record levels. Copper, for example, became more than 40% more expensive in 2025, and this year exceeded USD 14,000 per ton, reaching new highs during the summer. The increase reflects both supply constraints and rising demand generated by the energy transition and the development of data centres for artificial intelligence.
Adding to the existing pressure are the new costs generated by the European Union’s Carbon Border Adjustment Mechanism, or CBAM, which has applied since 2026 to certain materials imported from outside the EU. Initial estimates indicate a cost impact of 10-15%. For Romania, which imports significant volumes of steel, aluminium and other metals, some of these increases will inevitably be passed on into final prices and may reduce both company margins and appetite for new private projects.
Cost pressures are also becoming increasingly visible in construction companies’ cash flows. Long payment terms, particularly for certain public projects, tie up significant liquidity at a time when contractors are also having to absorb high material and labour costs. At the same time, high interest rates make access to the financing needed for working capital more difficult and more expensive.
The stakes are also significant for the economy as a whole, as construction accounts for an increasingly large share of GDP. In 2025, construction represented approximately 8.6% of Romania’s GDP, the highest share in the European Union, where the average is around 5%. At the same time, banks’ exposure to the sector continued to increase, and by the end of the first quarter of 2026, loans to construction companies had exceeded RON 54 billion, approximately 16% above the previous year’s level and almost double that of 2019. This is precisely why any sharp slowdown, particularly in infrastructure projects financed through European funds, could quickly spill over into other sectors.
In the coming months, one of the biggest challenges will be the continuation of projects financed through European funds, with the end of the National Recovery and Resilience Plan having been on August 31.
According to estimates cited by Colliers, road infrastructure alone could face an additional financing requirement of approximately EUR 10-15 billion, which would need to be covered, where possible, from the state budget or other programmes. The pressure is all the greater given that the 2026 budget includes record public investment of more than RON 160 billion, itself largely supported by European funds.
According to Colliers, in the second half of the year, public investment could keep the construction market close to record levels, provided the political situation stabilises and European funds continue to be absorbed. The greatest risk remains a sudden slowdown in state-funded projects, which would also have repercussions across other sectors of the economy.
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