What’s New in Real Estate in 2025: Legal Perspectives

The real estate market in 2025 is posed at the crossroads of economic recovery, sustainability goals, and legal reforms. Key legal developments shape the landscape for developers, investors, and stakeholders, as Romania integrates broader European trends with domestic imperatives.

1. Infrastructure’s Legal Backbone

The expansion of Romania’s infrastructure, including over 400 kilometres of new motorways and express roads in 2025, directly impacts the real estate sector. Improved connectivity enhances land value, spurring demand for residential, retail, and logistic developments. The geographical focus for real estate investments is expected to slowly shift (at least in part) from the capital, with an increase in interest in secondary cities connected or expecting to be connected to the new motorways and express roads. However, this growth must be accompanied by increased legal scrutiny on land acquisitions, expropriations, and zoning regulations. Developers must (still) navigate complex approval processes.

The integration of infrastructure projects with urban development plans is critical, requiring collaboration between public authorities and private stakeholders.

2. Digital Transformation in Real Estate Transactions

The digitisation of real estate processes is accelerating, driven by both market demand and regulatory initiatives. These advancements enhance transparency and efficiency but require robust data protection measures and cybersecurity protocols.

Romania’s adoption of digital tools in urban planning and land registration is a step forward, yet the integration remains uneven. Continued investment in technology and training is essential for maximising these benefits.

3. The “Pillar Tax” and Its Implications

The reintroduction of the “pillar tax” through OUG 156/2024-imposing a 1% levy on certain constructions-marks another critical legal shift. Aimed at boosting public revenues, this tax targets assets such as industrial buildings, logistics platforms, and agricultural infrastructure.

While anticipated to generate significant revenue, the tax’s broad applicability has drawn criticism from the private sector. Companies argue that it undermines competitiveness and discourages investment in essential infrastructure. The government’s commitment to consult stakeholders during the drafting of implementation norms will be pivotal in addressing these concerns.

4. Sustainability as a Requirement in Real Estate

Sustainability is now a mandatory focus for real estate developers, driven by EU regulations targeting carbon neutrality by 2050. Green building certifications, introduced in Romania in approximately 15 years ago, were an early step, but new directives require all buildings - new and existing - to meet stricter energy efficiency and carbon reduction standards. By 2028, all operational buildings must comply with Zero Emission Building (ZEB) criteria, exceeding current Nearly Zero Energy Buildings (nZEB) performance by 10%. Regulations also mandate eliminating natural gas use and improving overall environmental impact.

While certifications remain relevant, they are no longer enough. Investors, tenants, and financial institutions now require a broader ESG strategy, including energy efficiency, carbon footprint assessments, and compliance with EU taxonomy. Sustainable properties benefit from better financing, long-term asset value retention, and lower operating costs.

5. Legislation on Real Estate Investment Trusts (REITs)

One of the most anticipated developments in Romania is the finalisation of the REIT legislation. Designed to bridge the gap between real estate and capital markets, REITs offer a pass-through taxation mechanism, ensuring that profits are taxed only at the investor level. This framework is expected to enhance transparency, encourage foreign investments, and democratise access to real estate ventures. However, debates surrounding the fiscal neutrality of REITs-stemming from EU tax competition rules and domestic budgetary constraints-highlight the complexities of aligning local and international standards.

Countries like Bulgaria, with REIT frameworks since 2003, serve as a benchmark. Their experience underscores the need for clear and adaptable regulatory mechanisms. For Romania to unlock the potential of REITs, legislators must prioritise efficiency and investor protection while addressing gaps in financial literacy and market readiness.

6. The Revival of the Land Market

Despite uncertainties, the Romanian land market has shown resilience, with transaction volumes reaching €450 million in 2024. However, administrative inefficiencies and delayed zoning approvals continue to impede growth.

Nonetheless, despite the challenges, the Romanian land market in 2025 continues to present opportunities across various sectors, supported by stable transaction volumes, advances in infrastructure and a cautiously optimistic investment climate.

7. Romania’s accession to the Schengen Area

Romania’s strategic position as a logistics hub within Europe is drawing increased attention from international investors.

The elimination of internal border controls is anticipated to enhance Romania’s appeal to foreign investors. The streamlined movement of goods and people simplifies cross-border trade, reduces administrative barriers and costs, making the Romanian market more accessible and attractive for investment. This is expected to lead to heightened interest in all commercial real estate sectors.

8. Potential changes in residential developments

The residential sector continues to attract significant interest, with expectations of housing price increases in the near future.

A recent scandal involving allegations of fraud against a Romanian residential developer has sparked debates on the need for stricter regulations in the residential sector to prevent similar incidents in the future.

A new draft law was proposed to restrict advance payments to 10% of the total property price, which would be deposited into a special account dedicated to the specific property and would only be used by the developer for the development of that particular project.

As Romania’s real estate market navigates 2025, it faces a mix of challenges and opportunities. While economic uncertainties, inflation, and financing costs require careful consideration, the market remains resilient, driven by strong demand in the residential sector, expanding retail developments, and steady industrial growth. With sustainability and ESG compliance shaping investment decisions, Romania continues to attract both local and international investors. As the sector evolves, adaptability and strategic planning will be key to capitalising on the market’s potential in the years ahead.