Why do sales from the real estate market decrease? “The process of buying has been complicated visibly”

The number of transactions with apartments in Romania decreased by almost 9% in the first four months of 2025, compared to the same period last year, in Bucharest, the decline being even more pronounced, reaching 12%.

Romanians hesitate to buy apartments. Pixabay photo

The more difficult access to loans, economic instability and construction costs increase a tense year for the residential market.

“The decrease of the activity on the real estate market is the cumulative effect of several factors that affect both the confidence and the purchasing power of the Romanians. The slowdown of the labor market, the tempering of the increase of the income, the uncertainties generated by the electoral context and the constant increase in prices at housing creates a difficult climate for transactions. In addition, access to bank funding is increasingly limited, against the background of high inflation and economic instability. In the case of new apartments, the pressures are even higher. The elimination of some fiscal facilities, starting with January 2025, has increased the costs with the workforce, directly affecting the margins of the developers and supplying the housing. At the same time, the staff deficit in construction becomes more and more obvious, especially in the conditions in which the infrastructure projects advance at an accelerated rate ”explains Gabriel Blăniță, Associate Director | Valuation & Advisory Services, Colliers Romania.

After a 2024 in which the deliveries of housing in Bucharest decreased by almost 20%, neither the year 2025 brings convincing signs of return. Even if the volume of construction works increased by 9% in the first quarter, according to official data, the rhythm of deliveries will return to the levels of previous years is unlikely.

Although the beginning of the year has brought challenges for the residential market, the interest in acquiring a home remains high, approaching historical maxims, according to Eurostat polls. However, for those who depend on the lending, the process of purchase has been complicated visibly. Inflation, high costs of financing and possible fiscal measures to reduce the budget deficit additionally affect the accessibility of housing.

Colliers consultants estimate that inflation will remain high in the medium term, which puts the central bank in the relaxation of the monetary policy. At the same time, the fiscal measures necessary to reduce the budget deficit could make more difficult access to housing, directly or indirectly. Thus, 2025 is outlined as a difficult year for those who want to buy.

Increase the number of tenants

In addition to economic and inflationary uncertainties, Colliers consultants emphasize that access to funding remains a major obstacle. The high financing costs, in parallel with a possible delay in the interest reduction cycle, affect not only the demand, but also the possibility of developers to launch new projects, especially in the average market segment.

In this context, the rent market becomes more and more relevant. For many, renting is not only a viable alternative, but also a more accessible solution. In Bucharest, about 15% of the inhabitants are renting, and this percentage could increase in the following years, in line with the trends of the big European cities. For many buyers who have difficulty accessing a loan, rent becomes a natural transitional solution. The lease percentage remains relatively low in relation to the European average, but the direction is clear: the pressure on accessibility and the lack of new stock in the central and good areas will feed the rental demand.

“Looking at the future, the dynamics of the residential market will depend to a large extent on the decisions of monetary and fiscal policy, the stability of the labor market and the ability of the developers to adapt to the new conditions of cost and demand. While the decrease of trading activity reflects a period of adjustment, the fundamental interest for Housing in the big cities it remains high. Therefore, the market is expected to remain active but at a more temperate pace, with an increasing emphasis on efficiency and accessibility”, Concludes Gabriel Blăniță.