The number of apartment transactions in Romania decreased by almost 9% in the first four months of 2025, compared to the same period last year, in Bucharest the decline being even more significant, reaching 12%, according to data analyzed by a real estate consulting company.

According to Colliers, increasingly difficult access to credit, economic instability and rising construction costs outline a tense start this year for the residential market.

„The decline in activity on the real estate market is the cumulative effect of several factors that affect both the confidence and purchasing power of Romanians. The slowdown in the labour market, the moderation of income growth, the uncertainties generated by the electoral context and the constant increase in housing prices create a difficult climate for transactions. In addition, access to bank financing is increasingly limited, amid high inflation and economic instability. In the case of new apartments, the pressures are even greater. The elimination of some tax incentives, starting with January 2025, led to an increase in labour costs, directly affecting developers’ margins and fueling the increase in housing prices. At the same time, the shortage of construction personnel is becoming increasingly evident, especially given the rapid pace of infrastructure projects,” explained Gabriel Blanita, associate director of Valuation & Advisory Services, Colliers Romania, quoted in the press release.

According to the same source, after 2024, when housing deliveries in Bucharest fell by almost 20%, 2025 does not bring convincing signs of recovery either. Even though the volume of construction works increased by 9% in the first quarter, according to official data, it is unlikely that the pace of deliveries will soon return to the levels of previous years.

Colliers consultants estimate that inflation will remain high in the medium term, which hinders the central bank’s attempt to relax monetary policy. At the same time, the fiscal measures necessary to reduce the budget deficit could further hinder access to housing, directly or indirectly. Thus, 2025 is shaping up to be a difficult year for those who want to buy.

In addition to economic and inflationary uncertainties, Colliers consultants emphasise that access to financing remains a major obstacle. High financing costs, in parallel with a possible delay in the interest rate reduction cycle, affect not only demand, but also the possibility of developers to launch new projects, especially in the mid-market segment.

In this context, the consultants point out, the rental market is becoming increasingly relevant. (…) In Bucharest, approximately 15% of residents are renting, and this percentage could increase in the coming years, in line with trends in major European cities. For many buyers who encounter difficulties in accessing credit, renting is becoming a natural transitional solution. The rental percentage remains relatively low compared to the European average, but the direction is clear: the pressure on accessibility and the lack of new stock in central and good areas will fuel rental demand.

AGERPRES