Housing decline in some regions, increase in public funding

In the first ten months of 2023, the construction industry in Romania recorded significant developments.

With a total of more than 49,900 dwellings brought into use, the analysis reveals contrasting trends at regional level and in sources of financing, according to data from the National Institute of Statistics. 

Decrease in some regions:

Development regions such as North-West, Bucharest-Ilfov, West, Centre and South-Muntenia saw a decrease in the number of dwellings completed. Experts believe that factors such as regional economic changes and the fluctuating needs of the housing market may influence this downward trend.

Growth in Other Regions:

In contrast, the Southeast, Northeast and Southwest Oltenia regions saw significant increases in the number of completed homes. This increase can be attributed to local policies or favourable conditions that stimulated residential construction.

Changes in Funding Sources:

Another notable observation is the change in funding sources. During the period January-September 2023, the number of dwellings built with private funds decreased (-3090 units), while those financed by public sources increased (+289 units). This could indicate changes in developer preferences or adjustments in government housing policy.

Impact of Quarter III:

In Q3 2023, there was a decrease of 2,307 dwellings compared to the same period last year. This decline may reflect seasonal conditions or changes in housing demand.

Future Outlook:

The data analysis provides a comprehensive look at the dynamics of the housing and construction market in Romania. It is essential to monitor future developments and to understand more deeply the factors underlying these changes in order to guide future decisions in construction and real estate development.