Thursday, 15 January 2026
Over the past decade, Romania has established itself as one of the most active real estate markets in Central and Eastern Europe, attracting sustained interest from both regional and international investors. Despite shifting market cycles, regulatory complexity and evolving financing conditions, transactional activity has remained resilient, albeit more selective and structured in recent years.
Against this backdrop, PeliPartners has played a consistently prominent role in shaping the Romanian real estate transaction market. The firm has been involved, on average, in around two-thirds of the country’s major real estate deals year on year, giving it a broad and practical perspective on how development, investment and exit strategies are evolving.
To gain insight into current transaction dynamics, legal challenges and market expectations, CIJ spoke with Oana Bădărău, Partner and Head of Real Estate at PeliPartners. In the following interview, she shares her views on development structuring, regulatory and construction challenges, due diligence priorities, seller preparation and how transaction timelines in Romania have changed in today’s more cautious and disciplined investment environment.
CIJ EUROPE: From your experience leading the Real Estate & PPP practice at Peli Partners, how does your team typically support clients in the development phase of real estate projects in Romania – from land acquisition to permitting, construction contracts, and financing?
Oana Bădărău: We typically support projects across their full lifecycle. This starts with structuring and executing land acquisitions, continues through zoning and permitting, construction contracting, financing, leasing, and often extends to refinancing and exit. In Romania, development work is rarely linear, and the landscape is continuously evolving, with new regulatory requirements and market dynamics affecting project timelines and risk allocation. Legal advice must therefore be closely aligned with commercial decision-making, sequencing, and timing. Our role is not just to ensure compliance, but to help clients anticipate friction points early, structure projects in a way that remains bankable and transferable, and ultimately support the execution of complex developments with multiple stakeholders involved.
CIJ EUROPE: What are the most significant legal and commercial challenges you see in real estate development today in Romania – for example, related to urban planning, construction law (including FIDIC frameworks), or public-private partnership frameworks?
Oana Bădărău: Permitting and urban planning remain the most material challenges. The legal framework is complex, frequently amended, and applied inconsistently by local authorities, which creates uncertainty around timing and sometimes outcomes. Developers often face extended administrative procedures, overlapping requirements, and occasional ambiguities in how rules are interpreted, all of which may significantly affect project schedules and financial planning. On the construction side, risk allocation under FIDIC-based contracts and claims management have become increasingly prominent topics, particularly in a context of cost volatility. Stakeholders are increasingly focused on proactive risk management and contractual clarity to mitigate potential delays or disputes. Overall, navigating the regulatory environment in Romania requires both solid expertise and practical experience with how rules are applied in practice.
CIJ EUROPE: When preparing a seller for an exit or divestment in Romania, what specific legal and strategic considerations do you focus on to ensure the transaction is marketable and minimizes post-closing risk?
Oana Bădărău: A well-prepared seller generally achieves a smoother exit and preserves value. We focus on identifying and addressing potential legal issues well ahead of the process, including title matters, permitting gaps, construction documentation and lease standardization (in terms of meeting institutional-quality standards). The objective is to reduce uncertainty for bidders, limit the scope for price adjustments or post-closing claims, and enhance overall marketability of the asset. In today’s Romanian market, which is more selective and deliberate than in previous years, preparation is often the difference between a clean, efficient process and a protracted negotiation. Over the past 20 years or so we have been involved in a large portion of major Romanian real estate transactions that used external counsel, including approximately two-thirds of such deals in 2024 and 2025 as well, giving us a broad perspective on the practical challenges sellers may face and how to navigate them effectively. This proactive approach not only protects value but also increases confidence among buyers and financiers, contributing to a more predictable closing timeline.
CIJ EUROPE: For buyers conducting due diligence on Romanian real estate assets or projects, what are the key areas that often require deeper scrutiny – including any Romania-specific legal or regulatory risks?
For buyers conducting due diligence on Romanian real estate assets or projects, permitting compliance (both in terms of zoning/construction and operational permits) is always a key area of focus, particularly where projects have evolved over time. Title history, past ownership, and restitution risks also still require careful examination. Romania-specific risks tend to be less about the substance of regulation and more about excessive formalism and procedural complexity, which often leads to the question of whether administrative decisions are robust enough to withstand judicial review. Buyers are increasingly attentive to potential gaps or ambiguities that could affect financing, development potential, or future transfers. In practice, a thorough due diligence process helps anticipate post-closing challenges and ensures that the asset is truly marketable and operationally ready for the next stage of investment.
CIJ EUROPE: How have timing and overall transaction processes evolved in Romanian real estate deals – from initial offer to closing – and what are the common bottlenecks or challenges that can impact deal timing?
Oana Bădărău: Transactions today generally move at a more gradual pace compared to previous market peaks. Decision-making is more deliberate, due diligence is deeper, and closing timetables are often extended. Common bottlenecks relate primarily to permitting, administrative approvals, and the time needed to resolve any regulatory ambiguities, which can delay execution and require careful coordination between all parties. While deal flow remains active, timing has become a strategic variable rather than a given. Romanian transactions may take longer to reach closing, reflecting both the complexity of local regulatory procedures and the thoroughness with which parties now approach risk mitigation. In this context, having experienced legal support is crucial.
CIJ EUROPE – Conclusion: As Romania’s real estate market continues to mature, transactions are increasingly shaped by regulatory complexity, more rigorous due diligence and a heightened focus on risk allocation. While deal activity remains present across sectors, execution has become more disciplined and timelines more deliberate. As Oana Bădărău underlines, successful outcomes now depend less on speed and more on preparation, clarity and experience. In this environment, legal advisors who combine technical expertise with a deep understanding of local practice play a central role in supporting developers, investors and financiers through each stage of the transaction lifecycle.
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