Colliers report: Rising prices and limited supply push more Romanians toward renting in 2025
<p>A new report from Colliers highlights significant trends in Romania's housing market for 2025, revealing a continued rise in home prices, limited new supply, and increased demand for rental properties.&nbsp;</p>

<p>The findings show that while housing deliveries fell by 15% nationwide and over 20% in Bucharest, demand increased by 7% in 2024. As a result, buying a home is becoming increasingly unaffordable for many Romanians, making renting a more attractive option.</p>

<p>In its annual report, Colliers points to rising construction costs and limited access to financing as key factors contributing to the slowdown in new housing developments. With a gap between supply and demand becoming more evident, fewer new homes are being built, particularly in major cities like Bucharest, where land scarcity and high construction costs have created a supply shortage.</p>

<p>"Although housing deliveries remain above the decade's average, the gap between supply and demand is becoming increasingly evident. In previous years, a larger number of homes were authorized and built, but over the past two years, approved construction areas have declined significantly, signaling a notable drop in future housing deliveries. Bucharest is feeling this shift the most, with high demand but limited new developments, constrained by land scarcity, strict regulations, and rising construction costs," said Gabriel Blăniță, Director &amp; Advisory Services at Colliers Romania.</p>

<p>Nationally, nearly 170,000 apartment transactions were recorded in 2024, a number still above the 2018-2019 average but lower than the record levels seen in 2021. Colliers notes that while the first half of 2024 saw a surge in activity, market growth slowed in the latter half of the year, especially in December. Uncertainty surrounding the 2025 national budget and postponed elections caused many buyers, particularly in the mid-market and premium segments, to adopt a more cautious approach.</p>

<p>Access to financing continues to be a challenge despite the National Bank lowering the monetary policy rate to 6.5%. The high IRCC index, which remains at around 6%, discouraged many potential buyers, slowing mortgage-financed transactions.&nbsp;</p>

<p>However, wage growth above inflation helped maintain housing affordability for most Romanians. While house prices continued to rise, they did so at a slower pace than wages, keeping affordability relatively stable for many households.</p>

<p>"2024 was a transitional year marked by moderate sales and economic factors affecting access to credit," Blăniță explained. Although prices have continued to rise, they have done so at a slower rate compared to wage growth, meaning housing affordability has remained relatively balanced, he added.&nbsp;</p>

<p>In cities with limited housing stock and strong demand, prices have risen significantly, Colliers consultants highlight. Bucharest, Cluj-Napoca, and Iași recorded price increases above the national average, driven by insufficient new deliveries. In contrast, in areas with greater competition among developers or lower demand, slight price adjustments have been observed, though they do not indicate a broader market decline.</p>

<p>Looking ahead, Colliers predicts that 2025 will be another year of strong demand but limited supply, continuing the upward pressure on home prices. As the housing market becomes increasingly unaffordable, particularly in central and well-connected areas, renting is emerging as a more viable alternative for many Romanians.</p>

<p><i>irina.marica@romania-insider.com</i></p>

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