Romania’s construction industry is facing a significant increase in costs, both for materials and labor. The construction cost index published by INS showed a 14.7% rise in 2024 compared to the previous year, with peaks of over 20% for finishing and insulation materials.

These developments are severely affecting residential and commercial projects. Many developers are postponing the launch of new investments, while ongoing projects are undergoing major budget adjustments. Estimates by the Real Estate Developers’ Association indicate that the final price of housing could rise by 10–15% in the next 12 months.

The main causes are the increase in international raw material prices, the shortage of skilled workers, and generalized inflation. In addition, fiscal unpredictability complicates long-term planning.

To maintain balance in the market, there are intensive discussions about adapting legislation on contractual prices, fiscal incentives for developers, and strengthening strategic material stocks in public projects.

(Photo: Freepik)