The Spatial Planning, Urban Planning and Construction Code (CATUC), known as the new Urban Planning Code, represents one of the most extensive legislative reforms in the real estate and construction sector in recent decades.
The reform is not limited to speeding up the process of obtaining a building permit. It changes the way commercial real estate investments are prepared, built, accepted upon completion and managed throughout the entire lifecycle of the property.
The draft was adopted by the Chamber of Deputies on 29 July 2026 and by the Senate on 30 July and on 5 August it was promulgated through Decree no. 720/2026, becoming Law no. 169/2026.
The new legislation brings together, within a single framework, the main rules governing urban planning, construction regulations, urban planning documentation, works permitting, construction quality and the monitoring of buildings throughout their entire lifecycle.
For real estate investors, the changes primarily concern the predictability of the permitting process, digitalisation, administrative deadlines and infrastructure contributions.
For building owners and Property Management professionals, the impact will be reflected in the management of technical documentation, monitoring building performance over time, planning works and increased compliance responsibilities.
The new Urban Planning Code may have a positive impact on the real estate market, as it creates the conditions for a more transparent and predictable permitting process. For commercial, residential, office or retail investments, clarity of procedures is essential because projects are prepared and financed over the long term. At the same time, consultancy will increasingly rely on technical expertise, knowledge of the property’s history and the ability to correctly monitor the entire investment process, said Costin Nistor, Managing Director at Fortim Trusted Advisors, a member of the BNP Paribas Real Estate Alliance.
What changes for real estate developers
For residential and commercial developers, one of the main advantages is the introduction of more clearly defined administrative procedures and the digitalisation of the permitting process. Documentation will be able to be submitted digitally and reviewed simultaneously by the institutions involved, through the Single Approval Commission and the national urban planning and permitting platform.
Step 1: approvals and consents obtained through the Single Approval Commission will have to be issued within a maximum of 30 calendar days from the submission of complete and correct documentation. If the file is incomplete, the applicant must be notified within five working days.
Step 2: the building permit will, in turn, be issued within no more than 30 calendar days from the submission of complete documentation, with the option of an emergency procedure of up to seven working days, at the beneficiary’s request.
Clear deadlines may reduce the periods during which investments remain blocked between different institutions. However, these deadlines are calculated from the moment when the documentation is complete and correct. The quality of the technical, urban planning and legal preparation of the project will therefore become even more important.
An emergency fee is also introduced, reducing the permitting process to seven days.
Infrastructure contributions for projects developed through PUZs
The promulgated version of the Code no longer makes developer contributions conditional on a threshold of 500 apartments. Instead, the mechanism is linked to projects developed through Zonal Urban Plans (PUZs) that involve bringing land into the built-up area, functional conversions or changes to the urban planning indicators established through the General Urban Plan (PUG).
For these areas, local land servicing charges may be introduced to finance the development or modernisation of transport infrastructure, technical and utility networks, and educational, social, medical, cultural or environmental infrastructure.
Local authorities will also be able to negotiate urbanisation or urban restructuring agreements with the initiators of PUZs regarding the private financing of additional infrastructure works. These contributions will be added to the minimum obligations relating to utilities and the development of access roads.
A provision with a direct impact on project phasing establishes that the technical and utility infrastructure, transport infrastructure and public lighting included in the action plan must be accepted upon completion before the private developments. As a result, the acceptance of residential or commercial buildings will be more closely linked to the completion of the infrastructure required for their operation.
From the developers’ perspective, the new system may provide greater clarity regarding responsibilities, but also additional costs that need to be included from the land analysis and business plan preparation stage.
Permitting in Bucharest will be transferred to Bucharest City Hall
An important change for investments in the Capital is the transfer of certain responsibilities from all six district city halls to Bucharest City Hall (PMB).
Investors who own land, have financing available and have sufficiently advanced documentation should plan the permitting stages in good time. The transfer of responsibilities from the six districts to a single structure may initially place pressure on administrative resources. This does not mean that projects should be rushed without proper preparation, but rather that investors should avoid internal delays and enter the procedure with complete and well-substantiated documentation, Costin Nistor added.
Starting from 1 November 2028, the urban planning and permitting responsibilities assigned by the Code to district mayors and their specialised departments will be transferred to the General Mayor and the specialised department within PMB. The documents required to prepare the transfer must be adopted by 1 July 2027. Files that are ongoing at the time of the transfer will be handed over to the new authority and will continue without restarting the administrative procedures.
In the long term, centralisation may lead to a more consistent application of the rules across Bucharest.
In the short term, however, the transfer of staff, archives, databases and a large volume of documentation will require careful administrative preparation.
The National Construction Register changes the way buildings are managed
For owners and Property Management teams, one of the most important new elements is the National Construction Register. It will operate as a digital database covering public and private buildings, their condition and their performance throughout their operational life.
The Register will include information on the building’s use and location, urban planning status, energy performance, seismic risk, fire safety, accessibility and inclusion in energy renovation or structural strengthening programmes.
The building technical book will also have to be prepared electronically and registered in the National Construction Register. It will bring together information on design, execution and acceptance, as well as documents relating to operation, maintenance, repairs, monitoring of building performance over time and interventions carried out on the building.
The owner will be required to retain and update the documentation, while certain responsibilities may be carried out by the building manager under the terms of the contract. The provisions of the technical book relating to operation will be mandatory for the owner, manager and users.
In practice, Property Management will require stricter discipline regarding documents and interventions. Maintenance works, repairs, changes to installations, technical inspections and incidents occurring during operation will have to be monitored and documented so that the building’s technical history is complete and verifiable.
Professional insurance and clearer liabilities
The Code introduces more detailed obligations for designers, consultants, contractors, authorised inspectors, site supervisors and other authorised or certified specialists.
Designers and consultants will be required to hold professional liability insurance for the duration of their contracts, while authorised or certified specialists will have this obligation throughout the period in which they actively exercise their right to practise. For developers and contractors, the text also provides for civil liability insurance for a period of ten years, intended to cover damage occurring after the acceptance of the works.
The sanctions regime also becomes stricter. For certain breaches relating to construction quality, fines may reach RON 100,000. In the area of permitting, certain serious offences may be sanctioned with fines of up to RON 1 million, depending on the nature of the offence, its seriousness and the impact caused. Additional penalties are provided for floors constructed without complying with the building permit.
Property Management will play an increasingly important role in maintaining a building’s compliance. It will no longer be enough for maintenance works simply to be carried out; there will also need to be clear traceability of inspections, repairs and interventions. An up-to-date technical book and a complete building history reduce risks, support the value of the asset and provide the owner with the information needed to make investment decisions, Costin Nistor said.
Greater predictability, but also higher compliance costs
The new Urban Planning Code may simplify and standardise the relationship between investors, designers, contractors and public authorities. Digitalisation, the simultaneous review of documentation and clearer administrative deadlines may reduce the uncertainty that has affected numerous real estate projects.
At the same time, investors will need to account more carefully in their budgets for infrastructure contributions, insurance, specialised services and the costs of managing technical documentation. Building owners and managers will need more rigorous procedures for maintenance, monitoring and reporting.
The Code will enter into force 15 days after publication in the Official Gazette, and its application is not conditional on the subsequent adoption of secondary or tertiary legislation.
