"This year's pace of activity shows that the construction market remains very active, but its reliance on public investment is becoming increasingly significant. More than half of activity comes from state-funded projects, and the key question for the months ahead is whether these investments can continue at the same pace. The stakes are even higher for projects dependent on European funding, where any delays can quickly be felt across the market," said Alexandru Atanasiu, Partner and Head of Construction Services at Colliers.

Over the past decade, the volume of construction works in Romania has almost doubled, while the EU average has increased only marginally. Romania expanded its high-speed road network from approximately 900 kilometres before the pandemic to more than 1,400 kilometres at the beginning of 2026, with over 1,000 kilometres under construction and a further approximately 300 kilometres in planning. Cost pressures are mounting, however. Copper prices rose by more than 40% in 2025 and have exceeded $14,000 per tonne this year. The EU's Carbon Border Adjustment Mechanism, applied since 2026 to certain imported materials, is estimated to add 10-15% to costs for steel, aluminium and other metals that Romania imports in significant volumes. Long payment terms on public projects are also straining contractors' cash flows at a time of high interest rates and rising labour costs. Employment in construction stands at around 460,000, close to an all-time high.

"The construction market is still performing very well, but uncertainty is increasing. Contractors have projects and activity, but costs are rising, financing remains expensive, and some public investments are becoming more difficult to predict. If material and labour costs continue to rise, while public projects slow significantly or payments are postponed, the effects will be felt not only in construction, but also across other sectors of the economy," added Alexandru Atanasiu.

Construction represented approximately 8.6% of Romania's GDP in 2025, the highest share in the EU, where the average is around 5%. Loans to construction companies exceeded 54 billion lei at the end of the first quarter of 2026, approximately 16% above the prior year and nearly double the 2019 level. A key challenge in the coming months is the continuation of EU-funded projects, with the deadline for spending funds under Romania's National Recovery and Resilience Plan at the end of August. Road infrastructure alone could face an additional financing requirement of approximately €10-15 billion. Colliers has revised its forecast for the Romanian economy from growth of almost 1% to a contraction of approximately 0.7% in 2026, with a clearer recovery not expected before 2027.