The Association of Real Estate Investors of Romania (AREI), a body that brings together the largest real estate developers in Romania (Romanian and international companies) with projects and portfolios worth tens of billions of euros, believes that the debate on the new Spatial Development, Urban Planning and Construction Code ( CATUC) – the draft law, which is currently under public discussion in the Chamber of Deputies (the decision-making body) – should lead in a positive and constructive direction, the new draft Code is a fundamental act for the development strategy in the field of urbanism with national influence. Undoubtedly, the dialogue between the business environment and state bodies and institutions can generate public policies beneficial to the entire society.

The new Urban Development Code regulates the relationship between real estate investors and the authorities. “Our request to the legislator is to go further in the rules of application, establishing very clearly the framework of negotiations: what exactly can be agreed, what are the limits, what are the rights and obligations of all parties involved.” to explain Iryna Dimitriou, Head of Real Estate, Partner at Reff & Associates (Deloitte Romania).

AREI experts support the importance of cooperation between institutions and investors in the real estate sector as crucial, given that its results become beneficial in the long term for both parties.

“Cooperation between the authorities and investors is extremely important not only for investors, but also for the authorities. I will illustrate a concrete example of successful cooperation established with local authorities: a project in Romania, an open shopping center in October 2023. with a cost of 135 million euros, of which 10 million euros were allocated to the construction of a road that connects two important areas of the city, which means a lot compared to the budget of a secondary settlement. The artery is already one of the most important in Kraiów. In this case, cooperation with the local authorities was exemplary”, scored Robert Ionice, representative of AREI and head of the legal department of NEPI Rockcastle Group.

The development of such investment projects generates positive effects in the chain – the creation of new jobs, and over time the cost of the investment will be returned to the local and central budgets in the form of taxes on the profit received by merchants in trade. center, payroll taxes and VAT. At the same time, authorization fees, fees related to the construction phase, etc. will be added to this direct influence.

The Territorial Development, Urban Planning and Construction Code (CATUC) will clarify how you can build on the territory of Romania and will be addressed to both developers and natural persons (residents). AREI specialists emphasize that the proposals and recommendations for improving the new Code in its current form, made as part of the process of consultations and public discussions, are based on the highly relevant industry expertise and international experience of the association’s members, which help to prevent non-unified interpretation of legislation and potential abuse in the future.

Article supported by AREI