Romania’s residential real estate market is showing an acceleration in price growth in early 2026, following a period of relative stabilization. According to industry platforms and banking analytics, annual price growth in the country’s largest cities has reached 8–10%, with some locations and segments exceeding this range.

📊 The average property price continues to rise amid limited supply and устойчивый спрос. The strongest dynamics are observed in:

— Bucharest: around 8–9% year-on-year growth, particularly in the new-build segment
— Cluj-Napoca: up to 10–12%, remaining the most expensive market in the country
— Timișoara and Iași: 7–9%, with acceleration in new developments

The national average price is now in the range of €1,600–1,800 per m², while in Cluj-Napoca it consistently exceeds €2,500 per m², approaching levels seen in Central European cities.

📈 The acceleration in prices in 2025–2026 is driven by a combination of structural factors.

— Limited supply. The volume of new housing completions remains below demand. In 2024, the number of building permits declined by approximately 5–7%, directly contributing to the current shortage of new properties.

— Rising construction costs. The cost of materials and labor has increased by 15–20% over the past two years, setting a higher baseline for new developments.

— Recovery of mortgage demand. As inflation stabilized in 2025, banks resumed more active lending. The volume of new mortgage issuance grew by around 10–15% year-on-year.

— Urbanization. Demand is increasingly concentrated in major cities. Cluj-Napoca, Bucharest, and Iași continue to attract professionals, particularly in the IT sector, putting additional pressure on the housing market.

🏗 The market is also characterized by a widening price gap between new developments and the secondary market.

— new-build properties are on average 20–30% more expensive than resale housing
— in central locations, the gap can reach up to 35%
— part of demand is shifting toward the secondary market due to a lower entry price

At the same time, new developments maintain high liquidity thanks to construction quality and modern housing standards.

🌍 Romania is strengthening its position as a regional hub for IT and outsourcing. International companies continue to enter the market, creating additional demand for housing in business centers.

Additional demand drivers include:

— relocation of professionals from Eastern Europe
— growth in remote work
— expansion of hiring in the technology sector

📉 Unlike several Western European markets where demand is constrained by high interest rates, Romania’s demand structure remains relatively resilient.

— a significant share of transactions is completed without mortgages
— prices remain below the EU average
— there is still convergence potential with Central European markets

📊 Limited supply, rising construction costs, and demand concentration in major cities are forming a stable foundation for the current price dynamics.

🔎 You can explore current property listings in Romania on our website.