Decrease in Home Sales Across Romania, More Pronounced in Bucharest During First Half of the Year
In the first half of 2025, the residential market in Bucharest and Ilfov has experienced a significant decline in home sales, with a decrease of approximately 10% compared to the same period last year [1][3][2]. This downward trend is primarily attributed to a shrinking supply of new homes in Bucharest, as well as distinct market responses in the two areas.
Bucharest experienced the lowest number of new home deliveries in five years in 2024, with similarly low volumes expected in 2025. This limited supply has negatively impacted sales in the city, contributing to the decrease in home sales [1][3][2]. In contrast, Ilfov—the county surrounding Bucharest—has seen increased deliveries of new homes, resulting in a 5% increase in residential sales during the same period [1][3][2].
The Bucharest-Ilfov region faces broader structural challenges, including a disproportionate number of small and very small dwellings built in recent years, making many new homes unsuitable for larger families. While the share of such small units has decreased slightly in Ilfov, it remains very high in Bucharest, further complicating demand dynamics [4].
Meanwhile, other Romanian cities such as Constanța and Cluj-Napoca have shown increases in sales, highlighting regional differences in market health and supply dynamics [1][3]. Constanța, in particular, has become the second most active residential market in Romania, with an annual increase of 23.6% in residential sales in H1 2025 [5]. Cluj-Napoca, on the other hand, has seen an increase in home sales by 12.7%, despite its residential market being more expensive than Bucharest's [6].
A summary table provides a clear overview of the home sales dynamics in H1 2025:
| Region | Home Sales Trend (H1 2025 vs. H1 2024) | Key Driver(s) | |-------------|----------------------------------------|--------------------------------------| | Bucharest | -10% | Shrinking new home stock | | Ilfov | +5% | Increased new home deliveries | | Bucharest-Ilfov (combined) | -7.9% | Dominated by Bucharest's decline | | Constanța | +23.6% | Strong regional demand | | Cluj-Napoca | +12.7% | Higher sales despite higher prices |
The decrease in home sales in Bucharest and Ilfov is a significant issue for the residential market, as approximately 25,700 residential units were sold in the two regions during the first six months of 2025 [7]. Nationwide, around 74,500 residential units were sold during the same period [8].
In conclusion, the decrease in home sales in Bucharest and Ilfov is mainly due to a steep decline in new home deliveries within Bucharest, while Ilfov is benefitting from increased construction and sales. This highlights supply as the critical issue in Bucharest's residential market, compounded by demographic and policy challenges [1][3][4]. The contrasting performances of different regions in Romania underscore the importance of understanding local market dynamics to make informed decisions in the real estate sector.
References: [1] SVN Romania, "H1 2025 Market Report," [accessed 2025-07-01]. [2] SVN Romania, "Q1 2025 Market Report," [accessed 2025-07-01]. [3] SVN Romania, "Q2 2025 Market Report," [accessed 2025-07-01]. [4] SVN Romania, "Bucharest Housing Market Analysis," [accessed 2025-07-01]. [5] SVN Romania, "Constanța Housing Market Analysis," [accessed 2025-07-01]. [6] SVN Romania, "Cluj-Napoca Housing Market Analysis," [accessed 2025-07-01]. [7] SVN Romania, "Bucharest-Ilfov Housing Market Analysis," [accessed 2025-07-01]. [8] SVN Romania, "Romania Housing Market Analysis," [accessed 2025-07-01].
In light of the reduced supply of new homes in Bucharest, individuals might want to reconsider their financing options for investing in real estate in the city, as the housing market decline could persist for the foreseeable future. On the other hand, savvy investors may find attractive opportunities for investing in the housing market of Ilfov, given the recent increase in new home deliveries and residential sales in the region.
