This interview was first published in Property Forum’s annual listing of "The 50 most influential people on Romania’s real estate market”.

How did Biriș Goran’s real estate client portfolio develop in 2023 and what is your outlook for this year?

In 2023, we continued our cooperation with existing clients in our portfolio, whom we thank for their trust and continued partnership. At the same time, we were pleased to collaborate with new clients, with a special focus on the renewable energy and logistics/industrial sectors. Our outlook for this year is optimistic, given the numerous enquiries and planned projects and investments in Romania from both the private and public sectors.

What share does the real estate segment have in Biriș Goran’s total business volume?

The real estate segment has a significant share of Biriș Goran’s total business volume. Due to our firm’s “one-stop shop” profile, where multiple departments, such as tax and tax law, corporate and M&A, competition, energy, etc., are involved in many projects, it is difficult to specify an exact share. We are pleased to see a high level of activity in the real estate department and, at the same time, the close collaboration between all our departments, working as a united team to approach and analyse real estate projects from all the legal perspectives required for each individual project.

What segments of the real estate sector have generated the greatest demand for the law firm’s services over the past year? Do you expect any changes in the coming period?

The year 2023 saw high demand in renewable energy projects as well as in the industrial and logistics sector. Despite the challenges faced by the residential market, caused by rising prices, inflation and rising interest rates, Biriș Goran continued to provide legal assistance and services to its clients active in this field.

We expect a continuation of these trends in the near future, without major changes, but increased predictability in legislation would bring considerable benefits to the entire real estate market and boost investor confidence, potentially leading to increased demand for services.

There are also other areas where we have had requests and which are important for the Romanian economy, such as the hotel industry, agriculture or retail.

Do you have clients who want to invest in Bucharest? What questions do they have about the permitting situation?

We have clients interested in investing in Bucharest and ongoing projects in the city. However, the permitting process in Bucharest is marked by numerous challenges and interpretations, lacking clarity and predictability. This is a challenge for clients and investors alike, as well as for lawyers, who must constantly navigate an uncertain environment. It is challenging in the current context for both clients/investors and lawyers to follow the whole plan of an investment authorisation from A to Z when the rules change during the game or when, although the competent authorities issue authorisation documents, they end up being challenged, in various forms, also by the same issuing authorities. In this respect, the range of questions is very varied and we support clients in addressing all aspects of a project throughout its development.

It is equally true that the bottlenecks that have arisen in Bucharest with regard to the authorisation situation also put investors in a position of uncertainty with regard to the duration of the authorisation process, with repercussions on all other aspects of the project, such as the implementation period, business plan, construction, financing, operation or, where appropriate, sale. Most of the questions concern the status of urban plans, building permits and infrastructure. However, we assure clients of our continued support and expertise in addressing all aspects of their project.

What are your expectations from the real estate investment market this year? Could we exceed the €500 million transaction volume recorded in 2023?

As far as the real estate investment market is concerned, we expect the transaction volume to exceed the level recorded in 2023, given the significant transactions underway, including M&A transactions in the real estate segment. However, market developments will be influenced by legislative, economic and political factors, such as planning and building regulations, interest and inflation rates and political events.

How have real estate companies received the changes in the tax area? Have they discouraged new investment?

Companies have often been faced with a fait accompli without prior consultation on the impact of changes in the tax area or without taking into account the principle of predictability in the tax area. Changes in the tax area have been challenging for real estate companies, often changing business plans and requiring clarification on the application of new legal provisions. With the market already facing inflation, high interest rates, rising material prices, legislative uncertainty in planning and construction, a new challenge through substantial changes in the tax area may lead to additional difficulties.

With regard to new investments, any serious investor requires a lot of information and analysis before making an investment decision, and changes occurring even while carrying out such an analysis delay decisions.

Where are your main international clients located?

International clients are predominantly from Europe and Israel, but we have collaborations with clients from the US and other non-EU countries.

Which real estate-related industries generate demand for the land segment?

Besides the classic consumer goods manufacturing industries, I would mainly point to the energy, agriculture and transport industries.

How attractive is the Romanian market compared to CEE markets in terms of securing new foreign investment in real estate?

It is still a very attractive market, but more attention to the predictability of legislation would add to the competitiveness of the Romanian market. Also, we believe the implementation and completion of infrastructure projects at various stages, including transport (road, maritime and rail) will bring new opportunities and investors in all segments of real estate.