EVENT CONCEPT:
News.ro’s traditional premium event, now in its 4th edition, dedicated to urban and metropolitan development, which aims to bring together developers, builders, architects, consultants, financiers, utility providers, urban development and mobility specialists, local and central government officials to discuss solutions for a better life both at home and at the office, for a smart, sustainable city of modern times.

• In Romania in 2025, urban development continues in the trend of past years, but large cities and adjacent metropolitan areas have various problems and are developing unevenly. If in some areas new business, residential, mixed-use districts appear, in others modernization is incipient or absent. There are infrastructure issues, which are the responsibility of local and national authorities.
• New urban development hubs have emerged in major cities and Bucharest. Many of the projects aim to revitalize traditional areas of the city. Such projects involve developers, architects, builders, retailers, suppliers of building materials, services, utilities, and local government. Continuous and sustained collaboration, supported by consultants and lawyers, is needed for the projects to become reality.
• Mayors elected in 2024 should come up with new local development and infrastructure projects to improve living and working conditions in cities.
• After several years of record demand, the residential market in Romania entered a cooling phase in 2025, marked by the increasingly visible prudence of buyers, according to an analysis by Colliers.
• At the national level, the real estate market recorded almost 106,000 transactions with individual units in the first eight months of 2025, a similar level compared to the same period in 2024. Consultants estimate that activity on the residential market could noticeably decrease in the latter part of the year.
• The estimated value of land transactions for commercial real estate projects (excluding industrial) approached 200 million euros in the first half of the year, below the level of the same period last year. As a trend, office spaces with facilities attract customers.
• The government has decided to increase the VAT rate for deliveries of new housing from 9% to 21%, starting with August 1, 2025, a measure with a direct impact on the real estate sector. This change aims to increase revenues to the state budget, but at an economic and social level it has negative consequences for both the population and real estate developers. In practice, this is a 133% increase in VAT for individual buyers.
• In addition, the average interest rates on new mortgage loans, both fixed, which represent over 99% of the volume of new mortgage loans currently granted, and variable, are increasing in the second half of the year. The IRCC, the index used as a reference for calculating variable interest rates, has a record value of 6.06%, as of October 1, up from 5.55%.
• This situation will not encourage companies to expand, so a further decrease in demand for manufacturing, office and retail spaces is expected. At the same time, high construction and financing costs discourage developers and investors.
• The construction sector started 2025 well, with a growth of 12.2% in the first seven months compared to the same period last year. In terms of construction objects, increases were recorded in engineering constructions (+16.3%), residential buildings (+9.7%) and non-residential buildings (+6.2%).
• In the first semester of this year, 24,609 dwellings were put into use, down by 1,327 dwellings compared to the first semester of 2024, according to INS data.
• However, the construction market was influenced by the course of the economy and investor reluctance. It is now under pressure from significant challenges, determined by the increase in material costs, the uncertainty of public investments and the new fiscal measures that affect the workforce in this sector.
• The construction materials market is set to see a sharp increase in prices in 2025, amid price updates by manufacturers and importers.
• Another important factor influencing the construction sector is the lack of a well-trained workforce, which leads to the need to bring in personnel from other countries. Romanian construction workers are leaving for abroad, and the sector is increasingly staffed with less qualified people.
• According to the opinions expressed by construction managers, in September, the volume of production in the construction sector will have a downward trend in the next three months (short-term balance -8.8%). A downward trend is also expected in the number of employees (short-term balance -6.8%). Construction work prices are expected to follow an upward trajectory reflected by a short-term balance of +48.7%.
• A key element influencing new construction work are the nZEB standards – buildings with almost zero energy consumption, which will force the construction market to transform. In addition, banks insist on granting green loans for construction, based on sustainability and environmental protection criteria.

POLITICAL AND ADMINISTRATIVE CONTEXT

• Romania has been on a positive development trend in recent years, including at the level of urban and metropolitan development, but the current budget crisis and fiscal measures directly and indirectly affect the construction and real estate sectors.
• On the other hand, there is a disconnect between the plans and actions of local authorities and the evolution of the business environment. Moreover, some of the country’s major cities are far from being Smart Cities, in which authorities and the business environment together use innovation and technology to make people’s lives better.
• Local administration has not progressed to the same extent and there are major problems in ensuring the necessary conditions for urban and logistical development. There are cities with a good connection between the administration and developers, where smart-city concepts are at the forefront, but also areas where the local administration does not have a good connection with them, for various reasons.
• The central administration adopted the Urban Policy of Romania and developed a new Urban Planning Code, which simplified the legislation.
• The conclusion is that all those involved in urban and metropolitan development should discuss new directions and opportunities, as well as the measures that need to be taken in the crisis and have common plans for the city to be a friendly environment, both at home and at the office, a true smart city.

DISCUSSION TOPICS

• Romania’s urban policy; The New Urbanism Code;
• Local administration urban development plans; Developers’ projects;
• Collaboration between central and local authorities, developers, investors, utility companies for urban development projects;
• Analysis of the real estate market in major cities;
• Residential market – Prices, trends and changes in buyer behavior;
• Sustainable cities, climate neutral cities – the need for financing.

Event broadcast LIVE on Profit News TV, on www.news.ro and on the News.ro Facebook page