Romania’s construction market has reached an all-time high, with 460,000 employees recorded at the end of May 2025 and a 7% increase in construction output during the first five months of the year compared with the same period in 2024. However, part of this growth is the result of a favourable base effect, as the monthly pace has been relatively modest, according to Colliers’ H1 2025 report. Meanwhile, Eurostat’s confidence indicator for the sector continues to decline from post-pandemic highs, signalling a cooling of sentiment in the market.
Construction activity is fuelled mainly by unprecedented levels of public investment, with around 700 kilometres of expressways and major railway modernisation projects underway – a sharp contrast to the mere 140 kilometres of motorway under construction in 2019. These projects have become the main engine of the market, with public spending accounting for nearly half of all construction works in recent years. By contrast, private developments are slowing down: residential permits have fallen to levels last seen in 2015 – 2016, office investors are adopting a more cautious stance, and the industrial sector remains the only segment maintaining strong momentum, with investments continuing at a robust pace.
“2025 marks a peak period for the construction sector, with record levels of public investment and a very tight labour market, but we are also beginning to see the first signs of fatigue. The decline in contractor confidence, the slower pace of new private projects and the slowdown in hiring suggest that the industry may enter a more tempered phase after several years of accelerated expansion”, explains Alexandru Atanasiu, Board Member & Head of Construction Services at Colliers.
On the cost side, the removal of tax breaks for construction workers has forced companies to increase labour expenses to maintain net wages, in a context where attracting staff remains challenging. At the same time, material prices have once again become volatile, influenced by global geopolitical developments, and pressure on margins is intensifying – particularly for companies that have pursued aggressive growth strategies.
Colliers consultants stress that EU funds remain crucial for sustaining the current pace of investment. Delays in reform implementation and the risk of reduced disbursements until 2026 could significantly diminish the flow of public projects, with direct implications for the entire industry.
“Construction is a sector that accelerates slowly but brakes suddenly. This is why predictability in public investment and access to European funding is vital for market stability. Without a clear and continuous framework, companies will become more cautious, triggering knock-on effects on employment and related industries”, adds Alexandru Atanasiu.
Although the start of the year confirms high activity levels, the outlook for Romania’s construction market in the second half of 2025 will largely depend on fiscal stability, the country’s ability to access available EU funds and the continuity of public infrastructure investments. Without these drivers, there is a risk of stagnation. However, Colliers experts do not foresee a severe contraction similar to 2009 – 2010. Rather, the industry appears to be returning to a more normal pace after several years of intense activity.