REIT legal initiative submitted in the Romanian Parliament
Following the joint initiative of Bucharest Real Estate Club – the main industry’s association – and Bucharest Stock Exchange to promote the regulation of Real Estate Investments Trusts (REIT) on the Romanian market, the legal initiative was submitted in the Parliament earlier this month.
22.04.2024
REITs are investment vehicles which facilitate the access of individuals and legal entities to a diversified portfolio of real estate properties. Through these entities, investors can access and invest in real estate in a simplified and efficient manner. An important aspect of REITs is that they are listed companies on a regulated exchange, which ensures transparency, liquidity, and proper oversight for investors.
The lack of an appropriate legal framework for REITs in Romania constrains the development of this market, depriving the Romanian economy of the opportunities created by this type of instrument, such as the existence of a new source of stable financing.
Despina Ponomarenco, President of BREC
“Globally, the estimate for the value of REITs is 3,000 billion Euros. Regarding the EU member states, Romania, Croatia, Estonia, Latvia, Lithuania, Malta, and Slovakia are the only member states that have not regulated a specific tax regime for real estate investment companies. The Romanian real estate market has faced many challenges in recent years: the restrictions due to the COVID pandemic, inflation, the war on the border, the lack of predictability and, particularly for Bucharest, the urban gridlock. Under these conditions, the regulation of this instrument would attract new investors who are not present on the market.”
Adrian Tănase, CEO, Bucharest Stock Exchange
“This project takes into account the need to develop the local capital market and transform it into a viable channel for investing Romanians’ savings in real estate, a sector that is of great importance for Romania’s economy. The regulation of REIT-type instruments will attract investments both from the population and from Romanian or foreign institutional investors, thus generating an extension of economic activity in all sectors impacted by the real estate industry.”
More info on the subject:
Mai mulţi deputaţi PNL au depus un proiect pentru reglementarea anumitor categorii de societăţi active în domeniul imobiliar, care se circumscriu noţiunii de REIT cunoscut la nivel global | News.ro
EXCLUSIV Lege pregătită pentru crearea fondurilor de investiții imobiliare de tip REIT, listate la bursă și scutite de impozite. Și statul poate înființa astfel de firme | PROFIT.ro
BREC & BSE debate from December 2023 on REIT regulation –REIT REGLEMENTATION DEBATE AT THE ROMANIAN PARLIAMENT (brec.ro)
