This interview was first published in Property Forum’s annual listing of "The 50 most influential people in Romania’s real estate market”.

What are NNDKP's expectations for the volume of real estate deals in 2025, and which sectors do you predict will drive the most activity? What were some of the firm's highlights on real estate transactions during 2025?

The volume and complexity of the real estate deals handled by NNDKP have remained steady along the years, mainly due to the firm's ability to serve a diverse range of clients as a one-stop shop legal services provider. We expect this trend to continue in 2025.

Since the start of 2025, NNDKP has structured deals in all asset classes. However, the volume of deals was notably higher in the industrial and logistics sectors and the renewable energy sector. The real estate transactions closed or expected to be closed in 2025 with NNDKP's assistance are notable ticket deals relevant for their respective sectors.

What further developments in the legal framework do you anticipate will be significant for real estate projects in 2025?

An interesting development in the legal framework concerning real estate projects involves the potential adoption of regulations for preliminary sale-purchase agreements.

A legislative proposal has already been submitted to the Chamber of Deputies, and it includes provisions on contractual liability and financial responsibility for developers, such as limiting advance payments to 15% of the property's value or requiring the developer to secure insurance to cover the risk associated with the transfer of ownership for higher advance payments.

Thus, it is possible that such regulations will be adopted in the future, with the goal of enhancing the protection of buyers in real estate transactions. Shifting focus, according to recent pieces of legislation, investors are allowed to obtain separate building permits for multiple developments situated on a larger plot of land, based on a single urbanism certificate, provided that each building permit clearly specifies the distinct "objective" for which it is issued.

However, due to some inconsistencies in the legislation, renewable energy projects are often subject to a limit of 50 hectares per "objective".

Therefore, the current legal framework lacks clarity in terms of scope and applicability, leading to differing interpretations in practice, and even though some of these uncertainties were partially addressed by the entry into force of Government Decision No. 1700/2024, we anticipate further regulatory developments in this field.

How do you anticipate ESG regulations and their impact on real estate development and investment will evolve for NNDKP's clients in 2025?

The European Commission's so-called Omnibus Package will undoubtedly play a significant role in this area, given the changes it proposes to sustainability regulations focused on streamlining compliance and reducing the burden on companies.

One of the most important proposed changes concerns the Corporate Sustainability Reporting Directive (CSRD). Under the Omnibus Package, only companies with more than 1,000 employees and more than €50 million in turnover (or more than €25 million in assets) will fall within the scope of the CSRD.

That represents an 80% decrease in the number of companies impacted, dropping from over 50,000 to under 7,000. 

If formally adopted, this proposal would mean that many companies would be exempt from the ESG mandatory reporting, thanks to the increased employee and financial thresholds.

The proposed changes may, however, take several months-or even years to be officially adopted. In the meantime, businesses must understand how ESG regulations affect their operations and proactively prepare to meet compliance requirements.

Regardless of regulatory timelines and requirements, ESG is likely to remain a key concern, driven by continued investor and public pressure, including in the real estate sector as a contributor to climate change.

What key legal trends or challenges did NNDKP encounter in advising clients within the commercial real estate sector in 2024, and how might these shape your work in 2025?

Several legal developments in 2024 have influenced the advisory landscape in the Romanian commercial real estate sector. Inconsistencies and delays in local urban planning documents (PUZS) have made pre-development due diligence more complex, requiring closer collaboration with municipal authorities and more flexible contract structures. In addition, issues with land registries, especially in rural and peri-urban areas, remain a concern.

Moreover, EU regulations (e.g., CSRD) are pushing investors toward green-certified buildings. Legal advisors are increasingly involved in structuring deals and leases that comply with ESG benchmarks, including energy performance and sustainable procurement.

What potential shifts in lease agreement structures or client needs do you foresee in 2025?

The leasing sector has reached a level of maturity in the Romanian market, and certain standards were commonly acknowledged by both landlords and tenants in the structuring of the lease agreements.

The post-pandemic reality has nevertheless, made some tenants more aware of potential pitfalls which are now more thoroughly scrutinised.

Naturally, tenants occupying larger premises have greater leverage to negotiate better terms. Location and pricing will continue to drive tenants' choices backed up by additional amenities and easy public transportation.

The office leasing market in Bucharest has registered low vacancies, also due to the rather well-known difficulties in authorising new constructions. This allowed the existing landlords to safely secure prolongations of expiring lease agreements. 

What might influence the development of the residential sector this year?

Market reports from 2024 show that residential property prices in Romania continued to rise in line with the European Union average, while dwelling purchase interests stayed at a high level, comparable to 2006-2008.

The difficult permitting process in Bucharest puts further pressure on residential prices, and as long as this blockage persists, this trend is expected to persist.

In the capital city, the challenges raised with respect to the legality of the permitting process for certain existing residential projects, coupled with insufficient infrastructure and problematic traffic solutions are also expected to heavily influence investors' decisions regarding developments in this sector.

Residential sector growth remains closely linked to mortgage lending and interest rates, availability and cost of construction financing. Moreover, broader macroeconomic and political factors and uncertainties, whether political or social, are expected to play a role and may weaken demand.