Romanian real estate developer One United Properties posted a difficult start to 2026, reporting a steep decline in both revenue and net profit during the first quarter, as changes in the country’s residential legislation disrupted the timing of property sales and revenue recognition.
The Bucharest-listed company generated RON 176.5 million (€35 million) in turnover in Q1 2026, down 51% year-on-year, while net profit dropped 78% to RON 21.5 million (€4.3 million) compared to the same period last year.
However, the company says the weaker figures are largely tied to temporary accounting and administrative effects triggered by a new legal framework introduced in December 2025.
New residential rules reshape the market
According to One United Properties, the new legislation significantly changes how developers can formalize residential transactions in Romania.
Under the updated rules, developers are no longer able to sign pre-sale agreements immediately after launching a project. Instead, they must first complete a series of additional cadastral and administrative procedures, including the preliminary subdivision of apartments — a process known locally as “pre-apartmentation.”
As a result, many transactions that would previously have been booked as pre-sales are currently classified only as reservations until all legal procedures are finalized.
The company noted that this directly affects IFRS 15 revenue recognition standards and delays the moment revenues can officially appear in financial statements.
On a comparable basis — excluding the temporary legislative impact — One United Properties said its Q1 2026 net profit would have reached RON 70.5 million, representing a more moderate 27% decline year-on-year.
Residential demand remains strong despite accounting impact
Despite the weaker reported earnings, the developer says underlying demand remains solid.
During the first quarter, One United Properties recorded total residential transactions worth €60.4 million, including sales, pre-sales and reservations.
The transactions covered:
- 144 residential and commercial units
- 14,330 square meters of space
- 243 parking and storage units
Notably, €58 million of the total came from reservations rather than finalized pre-sale contracts, highlighting how the new legal environment is reshaping transaction flows in the sector.
Residential segment revenue fell sharply to RON 122.6 million, down 60% year-on-year. Excluding the legislative effect, the comparable decline would have been closer to 18%.
Even so, the company maintained a solid residential net margin of 32.1%, suggesting that profitability at project level remains resilient.
Rental business continues to grow
While the residential division faced temporary pressure, One United Properties’ commercial portfolio delivered stable growth.
Rental income — including revenues from office, retail and tenant-related services — increased by 5% year-on-year to RON 42.7 million.
Net rental income rose even faster, climbing 11% to RON 28.4 million.
As of March 31, 2026, the company’s commercial portfolio had a 97% occupancy rate, with 90% of tenants already operational in leased spaces.
During the quarter, the group leased and pre-leased another 4,635 square meters of office and retail space.
Aggressive expansion plans remain intact
Despite the temporary slowdown in reported earnings, One United Properties continues to push forward aggressively with expansion.
In Q1 2026 alone, the group invested approximately €20 million in portfolio expansion, excluding construction and operational costs.
At the end of March, the developer had:
- 4,154 residential units under construction
- 45,500 sqm of office and retail space in development
- projects with a combined gross development value (GDV) exceeding €1.6 billion
The company also controls or has pre-contracted nearly 539,000 sqm of land for future developments, with total gross buildable area rights of approximately 1.34 million sqm.
A €660 million real estate giant under pressure to deliver
With a market capitalization of roughly RON 3.3 billion (€660 million), One United Properties remains one of the largest real estate companies listed on the Bucharest Stock Exchange.
The company is equally controlled by founders Andrei Diaconescu and Victor Căpitanu, through their investment vehicles OA Liviu Holding Invest and Vinci Ver Holding, each holding 25.5%.
For investors, the key question is whether the current slowdown is merely a temporary accounting distortion — as management argues — or an early signal that Romania’s premium residential market is entering a more difficult phase after years of rapid expansion.
