Colliers: Construction activity up by over 6% at the start of 2026, but reliance on public investment is becoming a major risk  

The volume of construction works increased by more than 6% in the first two months of 2026, following a record-breaking 2025, while in April the sector remained Romania’s only major economic driver still showing growth, according to a Colliers analysis based on Eurostat data. At the same time, nearly 1,000 kilometres of motorway are currently under construction nationwide, amid an unprecedented wave of public infrastructure investment. However, market prospects are becoming increasingly uncertain against the backdrop of domestic political tensions and possible delays in securing European funding.

”The slowdown in the local economy has had a more limited impact on the construction sector, where developers operate on long-term cycles and are already looking at what the market will look like in two to three years’ time. At the same time, the market is being strongly supported by public investment, which accounts for more than half of all construction activity and is progressing at an unprecedented pace, both in road infrastructure and in projects such as railways, hospitals and stadiums”, explains Alexandru Atanasiu, Partner | Head of Construction Services.

At the end of April, almost all economic confidence indicators monitored by the European Commission were in negative territory, with the most pessimistic outlook coming from the consumer and retail sectors. Services and industry were also slightly below the historical average of the confidence index, while construction remained the only sector still in positive territory, although at a considerably lower level than the peaks recorded during 2023–2024, according to the Colliers analysis. At the same time, the private sector remains more cautious when it comes to launching new projects, amid high financing costs and economic uncertainty, further increasing the sector’s dependence on public investment.

”Against the backdrop of domestic uncertainty and growing concerns regarding the absorption of European funds, the construction sector is at a critical juncture. On the one hand, authorities are promising a record year for public investment, estimated to exceed 8% of GDP in 2026, but there is also a risk that these expectations may prove overly optimistic. In an already strained market, with employment levels close to historic highs, any sudden slowdown in publicly funded works could generate significant negative effects across the entire sector”, adds Alexandru Atanasiu.

At the same time, the accelerated pace of public projects is putting pressure on labour availability and on the logistical capacity of construction companies, in a market that is already operating close to its operational limits. The latest data show that the volume of construction works increased by more than 6% in the first two months of 2026, following a record year for the sector in 2025. However, beyond domestic uncertainty, Colliers consultants also warn that the market is facing mounting external pressures, as the prices of several construction materials have returned to an upward trend, with some approaching historic highs once again. These developments are putting pressure on contractors’ margins and could generate market instability if they significantly affect the financial capacity of companies operating in the sector.

The growing importance of the construction sector within Romania’s economy is reflected both in its contribution to GDP, which exceeded 8% – the highest share in the European Union – and in rising banking exposure. At the end of March, loans granted to construction companies exceeded RON 54 billion, up 16% year-on-year and almost double the level recorded in 2019.

The construction sector currently plays a key role in the economy, indirectly supporting industries such as building materials manufacturing, transport, logistics and professional services, which means that any significant slowdown could have widespread knock-on effects. As a result, a sharp deceleration in sector activity could trigger ripple effects across the wider economy, Colliers consultants conclude.

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