Major residential real estate developer pulls out of Bucharest after general urban plan is scrapped by court

In reaction to the General Urban Plan (PUG) of Bucharest being invalidated by a court, a decision that is still not yet final, and considering the discussions regarding the development of a new plan over a 3- to 5-year horizon, Impact Developer & Contractor announced that it would instead focus on other first-tier cities such as Iasi and Constanta, Ziarul Financiar reported.

Impact is the largest residential builder in Romania and the most active when it comes to developing large projects.

The company has a land portfolio (approximately 73.50 ha) that has a development potential for projects with an estimated market value of EUR 2 bln in Bucharest (Green Field Baneasa, Luxuria City Center, Greenfield West), Constanta (Boreal Plus), and Iaşi (Greenfield Copou).

Company’s CEO Constantin Sebesanu also complained about the Government cutting the incentives given to the sector in the form of waiving the social security contributions charges to wages of under RON 3,000 (EUR 600) per month. The threshold will be cut to RON 1,000 under the package of fiscal amendments envisaged by the Government to be enforced as of January 2023.

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