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The construction sector started 2025 with its engines revving, but faces the risk of a significant slowdown in the second half of the year

The construction sector began the year on a strong note, with an 8.5% increase in the first four months compared to the same period in 2024, according to data analysed by Colliers. Infrastructure works led the way with a 15.5% jump, while the residential segment recorded a modest recovery of around 4%. In contrast, non-residential construction, including office, industrial and commercial spaces, declined by nearly 2%, reflecting subdued demand and increased caution among private investors. Optimism among construction companies, as measured by Eurostat surveys, is currently at a 3-year low, but the level itself is quite far from the pessimism seen during the initial phase of the pandemic or during past recessions seen in Romania. This suggests that based on the intel that they have, market participants only see a slight slowdown on the horizon, not a significant crash.

Colliers: Land continues to be a strategic investment despite the uncertainty in the economic and political climate

Romania’s land market remained stable in 2024, with transaction volumes close to the 450 million euro recorded in 2023, despite an economic and political climate marked by uncertainty, according to Colliers' annual report. Bucharest and its metropolitan area continued to be the main hub for transactions, accounting for 80% of the total, while residential projects made up 70% of these deals.

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