The new Nordis law transforms the real estate market: safer for buyers, more selective and more costly for developers.

The law introducing major changes regarding the responsibility of real estate developers and the protection of buyers, known as the “Nordis Law”, recently adopted unanimously by the Chamber of Deputies and sent for promulgation, is transforming the real estate market: buyers benefit from unprecedented protection, real guarantees, and mechanisms that reduce the risk of losing advance payments. Developers, however, will need to recalibrate their projects, manage capital more strictly, and bear higher administrative costs, which will slow down project launches and increase housing prices — amplified by the recent VAT increases, according to specialists from TPA Romania, a leading company in Central and Eastern Europe specialized in audit, accounting, tax advisory, and legal consulting.

“The new law offers the strongest protection buyers have ever had. From their perspective, it is a step forward: more clarity, real guarantees, and mechanisms that reduce the risk of losing advances. For developers, however, a period of restructuring is coming, where capitalization becomes essential, projects will be harder to launch, cash flow will no longer be supported exclusively by advance payments, and administrative costs will increase significantly. The market will professionalize, but also filter itself. Additionally, the increased documentation volume, stricter controls, new rules on the use of funds, and the capital locked for longer within projects will increase construction costs. All these changes may, in the medium term, lead to higher housing prices. To this we add the recent VAT increase for residential units, which places additional pressure on the final price paid by buyers,” explains Alexandra Cohuțiu, attorney at TPA Romania.

Thus, the new law brings the real estate market to the edge of one of the most extensive legislative reforms of recent years: it seeks to remedy well-known vulnerabilities — overlapping promises for the same unit, advances not correlated with construction progress, non-transparent use of funds, and the lack of real guarantees for buyers during the project stage

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