Number of employees in Romania's construction sector reached 460,000 at the end of May (analysis)

Romania's construction sector had 460,000 employees at the end of May 2025, recording a 7% increase in the volume of works compared with the same period in the previous year, according to a specialist analysis published Tuesday.

According to Colliers consultants, at the same time, the builders' confidence indicator published by Eurostat continues to decline from post-pandemic highs, signaling a moderation of enthusiasm in the market.

Construction activity is mainly supported by public investments, with approximately 700 kilometers of expressways and large-scale railway modernization projects underway — a significant increase compared with only 140 kilometers of highways under construction in 2019.

"These projects have become the main driver of the market, as public spending has represented nearly half of total construction works in recent years. Meanwhile, private developments are slowing, with housing permits falling to levels similar to 2015-2016, office market investors becoming more cautious, and the only segment maintaining dynamism remaining the industrial sector, where investments continue at a high pace," the analysis notes.

On the cost side, the elimination of tax incentives for construction workers has forced companies to increase labor expenses to maintain net salary levels, in a context where attracting personnel remains difficult.

Colliers consultants also note that European funds remain decisive for maintaining the current pace of investments, and delays in implementing reforms or the risk of reduced funding tranches through 2026 could significantly slow public projects, directly impacting the entire industry.

As for the construction market outlook in the second half of the year, specialists believe it will largely depend on fiscal stability, Romania's ability to access available European funds, and the continuity of public infrastructure investments.

"Without these factors, there is a risk that the market could enter a stagnation phase, but Colliers consultants do not foresee a severe contraction like that of 2009-2010. Rather, the industry is returning to a more normal pace after several years of intense activity," the consultants said.