This trend points to a slowdown in construction activity over the past 12 months, driven by increased caution from developers over the weaker economy slowdown and still high interest rates. 

Moreover, difficulties in obtaining permits in certain parts of the country, particularly in Bucharest, have contributed to the decline. 

“Although the housing market demonstrated surprising resilience in the first part of 2024, numerous economic risks could negatively impact housing price growth and affordability. Slowing economic growth, declining external demand, volatility in global markets, and the fiscal measures needed to reduce the budget deficit could influence the local housing market more than initially expected, suggesting prudence and heightened awareness for those considering long-term investments,” says Gabriel Blăniță, Associate Director Valuation & Advisory Services at Colliers Romania. 

Meanwhile, final data for 2023 confirms a slight decrease in total residential deliveries compared to 2022, with around 71,000 units delivered compared to 73,000 in the previous year.