Tuesday, 25 August 2026
The entry into force on 25 August 2026 of the Territorial Planning, Urbanism and Construction Code (CATUC), Law No. 169/2026, marks one of the most significant reforms of Romania’s urban planning framework in the past two decades. According to Mauricio Mesa Gomez, Chairman of the Board of Cordia Romania and Spain, the new Code brings greater predictability for developers and financiers of real estate projects, although its success will ultimately depend on the ability of public authorities to effectively implement the new mechanisms introduced by the legislation.
One of the most debated provisions of CATUC is the limitation of increases in urban planning coefficients through Zonal Urban Plans (PUZs) and the reservation of very high-density indicators exclusively for the General Urban Plan (PUG).
According to Mauricio Mesa Gomez, this change should be viewed primarily through the lens of predictability rather than as a restriction.
“From our international experience, predictability almost always outweighs flexibility. For investors, developers and financiers, it is more important to have clear and stable rules than the possibility of constant adjustments from one project to another. The residential market needs a long-term vision to plan investments that unfold over several years”, says Mauricio Mesa Gomez.
The new legislative framework could help reduce some of the uncertainties that have affected urban development processes in major cities over the past few years.
“Clear rules are always preferable to situations where market participants do not know exactly what the outcome of an urban planning process will be. Investors need stability, and large-scale developments rely precisely on the ability to anticipate the framework within which projects will evolve.”
Urbanization agreements could transform the relationship between developers and public authorities
Another important innovation introduced by CATUC is the inclusion of urbanization agreements, a mechanism that allows local authorities and developers to jointly establish contributions toward the infrastructure required to support urban growth.
For Mauricio Mesa Gomez, this is one of the most significant changes introduced by the new Code.
“Perhaps the most important change brought by CATUC is the recognition that modern urban development requires cooperation between the public and private sectors. Large-scale projects are not just about constructing buildings; they are also about integrating them into a functional urban system with adequate infrastructure, mobility solutions and public services.”
Mauricio Mesa Gomez points out that similar mechanisms have been used for many years in Spain and across other Western European markets.
“Spain has long relied on instruments through which part of the value generated by a development project is reinvested in the infrastructure and public spaces serving the community. From this perspective, Romania is aligning with a well-established European practice.”
Alongside urbanization agreements, CATUC also creates the legal framework for the territorial infrastructure contribution, intended to finance the public infrastructure needed to support urban development.
According to the Cordia representative, the principle is sound, but implementation will be crucial.
“The idea that part of the added value generated by urbanization should contribute to infrastructure development is a practice found in many mature markets. The issue is not the existence of the contribution itself, but its predictability. Investors need to be able to assess project-related costs from the very beginning.”
Mauricio Mesa Gomez believes that the new Territorial Planning, Urbanism and Construction Code represents an important step toward a more coherent and predictable urban planning system.
“An institutional developer will always prefer a clear rule, even a stricter one, to a grey area where decisions are difficult to anticipate. CATUC lays the foundations for a more mature and predictable market. The next stage will be how these principles are reflected in secondary legislation and in the day-to-day practice of local authorities”, concludes Mauricio Mesa Gomez.
