In 2024, AFP achieved significant milestones, reinforcing our position as a key player in the Romanian real estate sector. We successfully expanded our team, further strengthening long-term client relationships built over the years. Our financial performance reflected this progress, with a notable increase in profitability. Given the dynamic regulatory landscape, we remained proactive in monitoring and swiftly implementing legislative changes to ensure compliance and operational efficiency. Our legal advisory team played a crucial role in navigating these complexities, providing strategic guidance to safeguard our clients’ interests in an evolving market.

Looking ahead to 2025, AFP aims to further solidify our market position by maintaining the highest standards of legal expertise and client service. Our primary objective is to ensure the successful continuation of ongoing real estate projects, recognizing that the permitting process begins well before construction and operation. This requires heightened diligence from our legal team to navigate the evolving regulatory framework effectively.

At the same time, we are committed to launching initiatives that contribute to local communities, reinforcing our dedication to social responsibility. A key focus will be supporting young students in their professional development, providing mentorship and legal education opportunities.

Despite economic uncertainties and geopolitical challenges, we remain confident in our firm’s resilience. We anticipate sustained demand for legal expertise in real estate and regulatory matters, positioning AFP for continued growth and an increase in revenue, even in a complex business environment.

In 2025, several significant legal and regulatory changes will shape the Romanian real estate market, requiring developers and investors to adapt their strategies accordingly. One of the most impactful developments is the introduction of fiscal changes effective January 2025, including amendments to the Fiscal Code. Notably, the implementation of the Pillar Tax is expected to have substantial implications for the industrial sector, affecting investment decisions and financial planning. Additionally, the ongoing systematic registration process in multiple administrative-territorial units presents both opportunities and challenges. While this initiative aims to enhance property records and legal certainty, it also raises concerns regarding ownership rights. Overlapping property claims resulting from registration inconsistencies could create legal barriers to project development, necessitating thorough due diligence and proactive legal intervention.

In 2025, the Romanian real estate market continues to face legal complexities across multiple segments, with distinct challenges emerging in residential, commercial, and industrial developments. From a local perspective, Bucharest appears to be increasingly constrained in the residential sector. The recently passed referendum in the fall, along with the centralization of traffic approval procedures, has significantly impacted urban planning and permitting processes. These regulatory hurdles are likely to delay or even block new residential developments in the capital. At the same time, we are witnessing substantial permitting challenges in the renewable energy sector, particularly for large-scale projects requiring zonal urban plans. The forthcoming Urban Planning Code is expected to provide much-needed clarification and restore a balance of decision-making power, but its impact remains to be seen. The commercial sector is also vulnerable, as expansion strategies depend heavily on Romania’s overall economic climate. Uncertainties surrounding economic growth and consumer demand could influence investment decisions, making legal due diligence and risk assessment more critical than ever.