The real estate market in Romania is booming and investments in residential construction are attracting more and more investors due to its long-term stability and security. In this context, it is important to understand the difference between residential and non-residential buildings, as well as the role of the real estate developer in the realization of these projects.

The difference between residential and non-residential construction

When we talk about residential buildings, we are referring to buildings and constructions that provide living space and are restricted to personal use. Apartments, houses, duplexes etc. are residential buildings.

Non-residential real estate serves a business, regardless of the field. Hotels, business offices, warehouses, metal halls and precast concrete products for industrial use are included in non-residential construction.

Under the law:

  • Residential buildings are buildings consisting of one or more rooms, which are used for living, have the outbuildings, fixtures and fittings and the necessary utilities to meet the housing needs of a person or family.
  • Non-residential buildings are non-residential buildings. These include buildings that are used for administrative, recreational, commercial, commercial, worship, cultural, educational, industrial, health, sports, sports, social, financial, banking, tourism and similar activities.
  • Mixed-use buildings are buildings that are used for both residential and non-residential purposes.

Whether a building falls into one of these categories depends on its final destination, the way it is used and the related expenditure.

What is a real estate developer and what is their role

A real estate developer is the natural or legal person who identifies and capitalizes on the potential of a site. Their role includes:

  • land purchase;
  • getting funding;
  • project coordination from idea to completion.

Developers work with a wide range of specialists: architects, engineers, lawyers, construction firms, banks and financial institutions. It is important to note that a developer is not necessarily a construction company, but may sometimes have its own construction team.

Who actually builds residential buildings

A residential project involves several roles and entities:

  • General Contractor / Construction Firm: it is responsible for the complete execution of the project (structure, installations, finishes, etc.). Depending on the beneficiary's requirements, the handover of the building can be "turnkey" or "gray".
  • Project Director: coordinates the activities on site, may be from the developer or the construction company.
  • Site manager: construction engineer who supervises the daily work and logistics.
  • Site manager: represents the interests of the beneficiary, ensuring the quality of the work carried out.
  • The technical person responsible for implementation: checks compliance with the design and technical rules.
  • Installation company: electrical, plumbing, heating and HVAC.
  • Suppliers of materials and equipment: delivers materials according to the execution schedule.

Choosing a general entrepreneur (reference to the article on the general contractor) It greatly simplifies the process for the beneficiary, who is only responsible for financing the project without having to manage the coordination of technical teams.

Residential buildings are a strategic and secure investment and their development requires the involvement of a complex team coordinated by a real estate developer. Every stage is crucial to the success of the project, from land acquisition to handover. For quality results, working with professionals, whether developers or general contractors, is the key to a successful project.