Construction Material Prices Continue to Pressure Romania’s Real Estate and Infrastructure Sectors

Construction material prices continue to exert pressure on Romania’s real estate and infrastructure sectors. According to data from the National Institute of Statistics (INS), in the first eight months of 2024, construction material prices increased by an average of 12.3% compared to the same period in 2023. The sharpest increases were recorded for cement, metal products, and paints.

The phenomenon is also confirmed by Eurostat data, which show a widespread trend across the European Union, though more pronounced in the eastern part of the continent. Rising raw material costs, persistent inflation, and imbalances in supply chains are the main contributing factors. In addition, transport and logistics expenses rose significantly in 2024, driven by higher fuel prices.

According to the Ministry of Development, projects financed through the National Recovery and Resilience Plan (PNRR) have undergone budget adjustments of up to 20% to offset these increases. Construction companies are calling for a reassessment of prices in public contracts, while private developers are facing delays or renegotiations in real estate projects.

Outlooks for 2025 suggest a possible stabilization, but at a high price level — a scenario that will require strategic adaptation across all segments of the sector.

(Photo: Freepik)