Increase in authorization for retail establishments in the first half of the year, residential sector indicates revitalization
Romania's Building Sector Shows Mixed Results in H1 2025
In the first half of 2025, Romania's building sector displayed a mix of growth and decline across different segments.
According to data from the National Institute of Statistics (INS), the total volume of building permits for retail spaces in Romania surged by 53% year-over-year, reaching 303 thousand square meters. This growth was accompanied by a notable increase in the number of retail building projects, which rose by 42% to 261.
In contrast, the number of projects in the "other buildings" segment, which includes offices, industrial, and logistics spaces, saw a more modest 1.9% decrease year-over-year, bringing the total to 2,671. The surface area of these other buildings increased by 5.7% to 1.48 million square meters.
The residential construction segment, however, experienced a more substantial growth. The square meters approved for construction in this segment increased by 7.9% year-over-year, reaching 4.3 million square meters. This rise was primarily driven by individual residential buildings, with the number of projects increasing by 4.2% to 17,639.
The average surface area of projects in the "other buildings" segment is 571 square meters, while individual residential building projects in Romania average at 241 square meters.
While residential building permits grew, home sales decreased by 3.4% in the same period, reflecting some market imbalances. Despite this, broader construction sector projections for Romania remain upward, with gross fixed capital formation into construction still expected to grow at 3.9% in 2025, the highest among observed countries in the region. However, this is a revised and reduced forecast from earlier estimates.
It's important to note that specific data for retail and other building permit growth rates in H1 2025 was not explicitly available in the search results. Given the context, the residential permits are the main quantified sector with 4.2% growth in H1 2025.
In conclusion, while Romania's building sector shows a mix of growth and decline, the residential construction segment is a notable area of expansion. The retail sector, on the other hand, has seen significant growth in both the number of projects and the volume of building permits. The "other buildings" segment, however, has experienced a more modest growth in the number of projects but an increase in surface area.
- The growth in Romania's retail sector, as indicated by a 53% increase in building permits and a 42% rise in building projects, suggests a positive trend in retail investing.
- Despite the robust growth in the retail sector, the finance industry might want to consider the parallel decline in home sales by 3.4% as a potential challenge for the broader real-estate business in Romania.
- The mixed results seen in Romania's building sector in H1 2025 suggest the need for investors to diversify their portfolio, possibly looking into opportunities in the thriving residential construction segment, as well as the more moderately growing "other buildings" segment, which encompasses offices, industrial, and logistics spaces.
