New Housing Deliveries Decline by 15% Nationwide and Over 20% in Bucharest, While Demand Rises by 7% in 2024

According to Colliers’ annual report, the number of new housing deliveries has dropped by 15% nationwide and over 20% in Bucharest, while demand has increased by 7% in 2024.

The increasingly difficult access to financing and the high costs of construction materials are slowing down future developments, further exacerbating the housing shortage.

Prices have continued to rise beyond the inflation rate, making homeownership increasingly unaffordable in major cities. In 2025, limited supply and strong demand will continue to put pressure on prices. In this context, the rental market is gaining ground, becoming an attractive option for those who cannot or do not wish to buy a home under current conditions.

Housing Market Transactions and Trends

At the national level, nearly 170,000 apartment transactions were recorded, both new and old. While this figure remains below the 2021 record, it is still over 40% higher than the average in 2018-2019.

Colliers consultants highlight that market evolution was not uniform throughout the year. In the first half of 2024, transactions were more dynamic, but the pace slowed down in the second half, particularly in December.

Uncertainties regarding the 2025 budget and the postponement of the presidential elections have made many buyers more cautious. This climate of uncertainty has been particularly evident in the mid-range and premium segments, where purchases involve large sums and stricter financing conditions.

Over the course of 2024, residential construction slowed by approximately 22%, according to the latest data from the National Institute of Statistics. One key factor influencing the market in 2024 was the difficulty of obtaining financing.

Although the National Bank reduced the policy interest rate to 6.5%, the IRCC index remained high at around 6%, due to its lagging calculation method. While banks continued to offer fixed-rate mortgage loans with more attractive interest rates, the high borrowing costs discouraged many buyers, leading to a slower pace of mortgage-financed purchases compared to previous years.

Rising Housing Costs in Major Cities

In major cities, buying a home has become increasingly expensive, especially in central areas where demand is high, and supply is limited. In contrast, metropolitan and suburban areas—where land is more available and construction costs are lower—could see an increase in housing supply, helping to balance the market.

In cities with limited stock and high demand, prices have risen significantly, according to Colliers consultants.

Bucharest, Cluj-Napoca, and Iași have recorded above-average price increases due to insufficient supply. Meanwhile, in areas with more competition among developers or lower demand, slight price adjustments have occurred, without indicating a general market downturn.

Market Outlook for 2025

Unless a major economic crisis occurs, the residential market is expected to follow the same trajectory in 2025. Colliers consultants anticipate that demand will remain strong, driven by rising wages, lower interest rates, and the increasing need for housing—especially in Bucharest and other major cities—due to both immigration and internal migration.

However, supply will continue to shrink, particularly in large cities, due to bureaucracy and developer hesitation. With fewer new homes and stable or growing demand, price pressures will persist. Under these conditions, access to housing will become even more difficult in central and well-connected areas, where prices are already high relative to average incomes.

The Growing Rental Market

In this environment, the rental market is expanding rapidly, attracting more investors looking for stable long-term income. In Bucharest, this segment is following the model of more developed markets in Central and Eastern Europe, becoming a viable option for those who cannot or do not wish to buy a home.

In the long run, population growth—concentrated in major cities—will sustain high demand in the residential market, Colliers consultants emphasize. Romania has one of the highest overcrowding rates in the EU, making housing a priority regardless of economic conditions.