The residential market in Bucharest recorded an 18.6% decline in apartment transactions in the first two months of 2026 compared to the same period last year, according to an analysis by Crosspoint Real Estate, an affiliate of Savills. In Ilfov County, the decline was more moderate, at 10.9%.

The decrease follows an already declining 2025, when transaction volumes in the Bucharest–Ilfov area dropped by 8.5% to 55,297 units, while new home prices increased by დაახლოებით 20%, reaching an average of €2,500/sqm. This combination—declining volumes and rising prices—indicates a market under pressure from structural constraints, particularly on the supply side.

Data shows a limited pipeline: only 4,013 building permits were issued in 2025 in the region, the lowest level in the past five years. At the same time, new housing deliveries increased marginally by 2% to 17,293 units, though this development was influenced by fiscal constraints—specifically, the application of the reduced VAT rate being conditional on project completion by the end of 2025.

Additional pressure comes from legislative changes, including Law 207/2025, which limits the use of off-plan sales as a financing source. This particularly affects new developments, reducing the likelihood that some projects will be launched.

At the same time, construction costs continue to rise above the European average. Eurostat data indicates a 9% increase in Romania in 2025, compared to approximately 1% at the European Union level. Against the backdrop of average inflation of 7.3% and reduced affordability—equivalent to 7–9 years of average income for purchasing an apartment—demand is becoming more cautious.

Under these conditions, 2026 is shaping up as a year of adjustment, characterized by selective demand and limited supply. In the medium term, the shrinking pipeline may continue to put pressure on prices, especially in central areas and the upper segment of the market, with potential stabilization expected only after 2027.