Romania’s residential market slowed in the first half of 2026 after several years of strong growth, but the figures do not indicate a major correction, according to a Colliers report. Apartment transactions fell by approximately 9% nationwide, while Bucharest recovered from a weak start to end the period only around 2% below the first half of 2025.
Trends varied significantly between major cities. Apartment sales declined by roughly 16% in Cluj-Napoca and 11% in Iași, while Timișoara recorded growth of around 3%.
Colliers said pricing, affordability, and available supply are playing an increasingly important role in purchasing decisions, as high inflation, expensive borrowing, and pressure on household budgets make buyers more cautious.
“We are not seeing a uniform decline across the market, but rather increasingly significant differences between projects and cities,” said Gabriel Blăniță, director of Valuation & Advisory Services at Colliers Romania.
Romania’s limited supply of new homes continues to support prices, the same source said. Around 59,000 homes were completed nationwide in 2025, the lowest number since 2017, and no significant short-term increase is expected.
Bucharest is showing more positive signs for future supply, as the authorized net area for residential buildings increased 3.6-fold in the first five months of 2026. The capital contrasted with the national trend, where residential building permits fell by approximately 9-10% in the first half of the year.
However, Colliers said, permits granted now are expected to translate into completed homes only over the next two to five years.
Residential construction activity remained strong, with the volume of works increasing by around 16% in the first five months of 2026.
Buyer interest also remains relatively resilient, although purchasing decisions are taking longer. Approximately 58% of home acquisitions are financed through mortgages, a share similar to last year, suggesting that buyers have adapted to some extent to higher interest rates.
Affordability has not improved significantly, as house prices and wages have followed similar trajectories. By mid-summer, asking prices in Bucharest were around 9% higher year-on-year, with a comparable increase recorded nationwide, although monthly growth had moderated.
Colliers noted that performance increasingly depends on individual projects rather than broad market trends. New energy-efficient homes in well-connected locations and projects developed by reputable companies are performing better, while less clearly positioned developments increasingly require discounts or more attractive commercial packages.
“Buyers are paying increasingly close attention to the costs that come after the purchase, from energy and maintenance to time spent commuting,” Gabriel Blăniță said.
The outlook for a stronger recovery in lending has weakened, as inflation remained close to double digits in mid-2026 and the National Bank of Romania is expected to keep its key interest rate at 6.50% until 2027. Nevertheless, Colliers said demand continues to be supported by Romania’s need for new, efficient, and well-connected housing.
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