Bucharest’s residential market kicked off 2026 with a sharp slowdown, as apartment transactions plunged 18.6% in January–February compared to the same period last year, according to Crosspoint Real Estate analysis.

In neighbouring Ilfov county, the drop was 10.9%, capping a 2025 where the Bucharest–Ilfov metro area saw total volumes shrink 8.5% year-on-year to 55,297 units, even as new apartment prices surged about 20% to an average €2,500 per sqm.

The slowdown follows a supply squeeze: 2025 sau just 4,013 building permits issued in the region, the leanest pipeline in five years, despite a marginal 5% uptick from 2024. Last year’s 2% rise in completions to 17,293 new homes was partly artificial, driven by developers rushing deliveries to meet the August 2025 deadline for the 9% reduced VAT rate, which required handovers by year-end.

Fiscal rush masks deeper production woes

That VAT deadline spurred a construction sprint, but it didn’t signal lasting capacity gains. With incentives expiring and financing tightening, 2026 faces a thinner delivery stream amid high costs and regulatory hurdles.

The 20% price jump in 2025, outpacing wage growth, has priced out many first-time buyers, while investors eye yields amid rental shortages. Crosspoint warns the metro area’s stock deficit will persist without policy shifts on permitting, land release and affordable housing mandates.