Bucharest’s housing supply to remain limited in 2025

The number of new homes expected to be completed in Bucharest and its surrounding areas in 2025 will remain at historically low levels, according to the latest “Romania Residential Market Genome” report by real estate consultancy SVN Romania. The estimated 18,000 new residential units set for delivery next year match the low figures recorded in 2024, when the market experienced its lowest level of residential completions in five years.

In 2024, approximately 17,000 new homes were completed in Bucharest-Ilfov, representing a 19.3% decline from 2023, as reported by the National Institute of Statistics (NIS). A year earlier, SVN Romania had projected that around 17,500 units would be delivered, a forecast that was largely accurate.

A further decline in housing supply is anticipated for the medium term. The number of residential units under development with scheduled deliveries for 2026 and 2027 has dropped significantly to 6,600 homes, a sharp reduction from the 11,300 units under construction at the beginning of 2023 with estimated completion in 2025 and 2026. This suggests that housing deliveries could continue decreasing beyond 2025.

SVN Romania CEO Andrei Sârbu attributes the current slowdown in new supply to the decline in construction permits and authorized building areas. In 2024, the number of construction permits issued for residential buildings in Bucharest was 2% lower than in 2023, 20% lower than in 2022, and 39% lower than in 2021. The total usable area approved for residential construction also declined, dropping by 6% from 2023 and 27% from 2022.

Despite the decline in housing completions, home sales in Bucharest increased by 7.7% in 2024, suggesting strong demand. The limited supply, coupled with growing demand, is expected to contribute to further price increases in the residential market in 2025.

The northern districts of Bucharest are expected to account for more than 50% of the total new housing deliveries in 2025, marking the first time this area will hold the majority share of residential completions. This shift is attributed to the large-scale residential developments currently under construction, as well as the growing importance of Pipera-Tunari as a residential hub.

The eastern part of Bucharest is emerging as the second-largest residential development zone, with 16.8% of the new housing supply expected to be delivered in 2025. Meanwhile, the western districts are projected to account for 15.8% of new housing completions.

Most of the new homes expected to be delivered in 2025 will cater to the mass market segment, which represents 48.6% of the total supply. The middle market segment is expanding, accounting for 44.7% of the expected new supply, an increase from 36.4% in 2024. Meanwhile, premium residential developments will make up only 6.7% of the market.

As construction activity slows and the issuance of new building permits remains limited, housing supply in Bucharest and its surrounding areas is likely to remain constrained in the coming years. This trend is expected to put further upward pressure on housing prices, particularly as demand remains stable. The long-term outlook for the residential market will depend on future policy measures and the pace at which developers can bring new projects to completion.