Romanian construction sector sees 2.5% decline in first half of 2024

The construction sector in Romania experienced a 2.5% decrease in the first half of 2024 compared to the previous year, according to recent data. The decline was particularly pronounced in the residential construction segment, which saw a significant 22% drop during this period.

In June alone, the construction sector contracted by 6%. The government had anticipated a downturn in residential construction, initially forecasting a 2% reduction for the year. However, the actual figures reveal a much steeper decline, with the sector shrinking ten times more than expected.

Industry experts, including Antoanela Comşa, president of the Gran Via developer, attribute the sharp decrease to rising raw material costs and administrative delays, particularly the lack of building permits. These factors have severely impacted the sector, contributing to the ongoing downturn.