Residential constructions are on the ground in Romania. What are the causes and what…

The residential construction market marked a decline of 41% in the first two months of the year, in a construction market that decreased by 11% in total, and although the downward trend had been anticipated, the proportions are “beyond expectations”.

“Among the most important causes of the decrease are financing costs, which, although they show clear prospects for a decrease this year, are currently at a level that is still unattractive to investors. Also, another important factor can be the duration of project approval, which obviously generates gaps in the market and implicitly major fluctuations. In fact, the statistic is somewhat confirmed if we look at the pipeline of new and active residential projects in Bucharest, versus those planned but without authorization”, says Răzvan Pârvulescu, development director at BTD Construct & Ambient, one of the most active builders of houses in the Capital.

Residential was one of the main growth engines for construction in 2018-2022, construction being a real pillar of support for the entire economy in the peak years of the pandemic, 2020 and 2021.

“The end of the first quarter of the year brought a paradigm shift, in the sense that we notice a good dynamic in the market of new projects and an acceleration of the decision-making processes”, he adds.