Romania’s construction market enters 2026 at a very high level of activity, close to historic peaks, supported primarily by public investment, but also by sustained interest from private developers. The volume of construction works increased by nearly 8% in the January–November 2025 period compared with the previous year, reaching very close to the 2023 record, according to Colliers’ annual report. This development shows that the construction sector continues to operate at a high level of activity and remains resilient, at least for the time being, to the mounting pressures and uncertainties of recent years. At the same time, Colliers notes that the construction sector accounted for almost 9% of GDP in 2025 – the highest share in the European Union and significantly above the EU Member States’ average of 5%.

By segment, market growth has been driven primarily by civil engineering works, which include major publicly funded projects such as infrastructure and large hospitals, both of which reached record levels in 2025. Non-residential construction increased by over 11% last year compared with 2024, approaching the peak levels recorded in 2023. The residential sector also posted solid growth of more than 12%, although it remains below its recent historic high, while consistently staying above pre-pandemic levels. Overall, construction activity in 2025 reached almost double its pre-pandemic level, confirming the accelerated pace of works in recent years.

“The data clearly show that Romania’s construction market is operating at a very high pace, close to historic highs, with this momentum driven primarily by large-scale public projects. It is important to understand, however, that we are referring to volumes of work – namely the intensity of activity and number of labour hours – rather than the financial value of investments, which makes these results all the more remarkable. We interpret this information as follows: the pace and scale of change are significant, and if we manage to maintain this direction, the country could look very different in 10 years’ time”, explains Alexandru Atanasiu, Partner | Head of Construction Services.

Although activity levels remain high, the short- and medium-term outlook is marked by additional pressures. As of 2026, a new carbon tax on construction materials imported from outside the European Union has come into force. Initial estimates indicate a potential cost impact of between 10% and 15%, although the full extent will become clearer during the year. Given Romania’s heavy reliance on imports of steel, aluminium and other metals, it is unlikely that construction companies will absorb these additional costs in full. In practice, a significant share will be passed further along the supply chain, putting pressure on final project prices. As financing remains selective and costs are already elevated, such increases may dampen appetite for new investments, particularly in the private sector.

These pressures are further amplified by the global geopolitical context, which has made the sourcing of materials more difficult and more expensive. In 2025, indices tracking the prices of certain construction materials reached record levels both in Europe and in the United States. The price of copper, for example – an essential material for the construction sector – rose by more than 40% in 2025, reaching historic highs, while other base metals also recorded significant price increases.

On the domestic labour market, construction reached a record workforce level of 462,000 employees in July 2025, up 1% year-on-year. Colliers’ consultants underline that the slight decline observed in the following months does not alter the overall trend and may also be explained by seasonal factors.

At the same time, although wage pressures are visible in a still-tight labour market, construction salaries in Romania remain below those in other Central and Eastern European countries. This provides companies with a degree of flexibility in a context where costs are already rising. As such, Colliers’ consultants point out that Romania’s construction sector continues to post operating margins above the European Union average, offering some buffer against cost pressures, even if the environment remains challenging.

“In recent years, construction has become an increasingly significant contributor to Romania’s economy. In the first three quarters of 2025, the sector accounted for 8.7% of GDP – the highest level in the European Union and significantly above the Member States’ average of 5%. This share highlights how much the economy relies on construction, but it also reveals a certain vulnerability, given that more than half of activity is linked to civil engineering works financed through European funds. Although this is not our base-case scenario, any delays or blockages in accessing European funding could have a visible impact on the sector, with wider repercussions across the economy”, emphasises Alexandru Atanasiu.

For 2026, Colliers’ consultants expect a more balanced evolution of the construction market, in a context where cost pressures are likely to remain elevated. Activity is expected to continue to be supported by public investment, provided that a stable political climate is maintained. At the same time, private investors are already adjusting project plans and timelines, preparing for a potential market rebound in the medium term.