The delivery of new homes fell by 15% nationwide and by more than 20% in Bucharest, while demand increased by 7% in 2024. Difficult access to financing and rising construction costs are slowing future developments, exacerbating the housing shortage.
Meanwhile, prices continue to outpace inflation, making homeownership increasingly unaffordable in major cities. In 2025, limited supply and strong demand will keep upward pressure on prices. Against this backdrop, the rental market is gaining momentum, emerging as an attractive alternative for those unable or unwilling to buy a home under current conditions, according to Colliers.
At a national level, nearly 170,000 apartment transactions were recorded, including both new and existing units. While this is below the record set in 2021, it is still more than 40 per cent higher than the 2018-2019 average. The first half of 2024 saw strong transaction activity, but growth slowed in the second half, particularly in December.
According to the latest data from the National Statistics Institute, residential construction slowed by around 22% throughout 2024. One of the main factors affecting the market was limited access to finance. Although banks continued to offer more attractive fixed-rate mortgages, the high cost of borrowing discouraged many buyers, resulting in a slower pace of mortgage-financed transactions than in previous years.