Construction works volume in Romania peaks in Q3 after 12% q/q surge

The construction volume index in Romania increased markedly in Q3 by 12.1% q/q in seasonally and workday adjusted data, according to data published by the statistics office INS. All market segments gained momentum, but that of non-residential buildings stood out with a major 14.4% q/q surge.

The outstanding performance in Q3 may have something to do with the VAT rate hike for the construction contracts as of August, with the works volume index having surged by over 50% y/y in the preceding month (July), possibly reflecting in-advance invoicing. The growth rate returned to robust levels (+21.4% y/y in September, however. 

Speaking of intra-quarterly data, the civil engineering works marked a visible deterioration in August (-9.1% y/y) and September (-2.8% y/y), reflecting the government’s decision to suspend works at some investment projects.

In annual terms, the construction volume index advanced by 14.1% y/y in Q3, with the residential building segment outperforming the market (+27.7% y/y) and the non-residential segment rising robustly as well (+22.1% y/y). The civil engineering segment posted a 7.1% y/y growth rate that was significant in itself, albeit half the market’s pace.

The broader picture shows Romania’s construction volume had posted relatively steady levels during 2024 and the first half of 2025 – except for the weak first quarter of last year (Q1, 2024). The civil engineering segment may have demonstrated an upward tendency during the period – but the residential. The residential and non-residential segments hovered within relatively narrow bands, showing stability. 

The third quarter of 2025 marked positive developments in each of the three market segments, particularly in the heterogeneous non-residential (industrial, logistics, retail, office) segment, where the construction works volume reached a new record: 27% above the past four quarters’ average.

The other two segments (residential, civil engineering works) also boasted robust performances: +18%-19% compared to the previous four quarters’ average. 

iulian@romania-insider.com

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