Real estate in Romania

In a strict legal sense, real estate rights in Romania refer to ownership over land and/orbuildings or dismemberments of such ownership (usus, ususfruct, superficies, easementrights, etc.). In a broader sense, it also refers to rights of use over land and buildings, especially in relation to housing, retail or office space leases.

Prior to 1989, the majority of real estate assets were owned by the Romanian State,having been illegally seized or expropriated en-masse by the communist regime, with significant parts of the country’s agricultural lands collectivised.

After Romania’s switch to a market economy, a turbulent time followed as state ownedenterprises were privatised and individuals filed claims for restitution of collectivisedlands and illegally seized assets, in a climate of constant change and interpretable legislation.

Until Romania’s accession to the EU ownership over land by foreign nationals wasrestricted. However since 2012 such ownership transfers were in most part liberalised inrelation to citizens of EU member states. Transfer of real estate to nationals of non-EU states is still subject to conditions of reciprocity – such reciprocity still has for the mostpart not been implemented by instruments of international public law.

Beginning 2010 the real estate restitution process has generally settled down and alarge part of Romanian real estate is now in the private domain. Such real estate isfreely transferable under market conditions between Romanian and EU individuals/legal persons. The legal regime applicable to such transfers has been significantly clarifiedand stabilised.