Government wants to ban apartment gas boilers in new apartment blocks. Will property prices rise?

Calorifer pexels-maria-orlova-4946714 Foto: Pexels / Maria Orlova

The year 2022 brings many changes for Romanians: it will bring a series of increases in income (minimum wage, salaries of some state employees, pensions, allowances), cheaper phone calls, but also many prices increases: fuel, energy and, for the inhabitants of Bucharest, even parking. Among the changes is a ban on apartment power plants in new blocks.

Environment Minister Tanczos Barna told Digi 24 late last year that individual apartment gas boilers would no longer be allowed in new blocks from January or February. This he said that by the beginning of 2022 there could be legislation on this measure.

The changes will only apply to new construction. According to the minister, those who already have their own apartment central units installed will be able to replace them when they come out of warranty.

At the same time, Emil Boc announced that on 18 January, Cluj-Napoca will adopt a local council decision banning individual gas-fired power plants in new apartment blocks.

“This will contribute to reducing pollution in the city, lowering the heating bill, and increasing the quality of life through better health of residents,” Emil Boc, the mayor of Cluj, told Economedia.

Instead of individual gas boilers, the people of Cluj will be able to opt for a range of alternatives: connecting to the heating system, building furnaces, heating with large and efficient power plants, or switching to electric (photovoltaic panels).

Răzvan Nicolescu, a former energy minister, also agrees, telling Economedia that such a measure is the right one and would bring lower costs for citizens in the medium and long term, as well as environmental benefits.

“The decision to ban individual gas boilers, although harsh, is right and justified. Moreover, people will benefit in the medium and long term. Romanians should know that individual natural gas-fired boilers have no future, even if natural gas will continue to be used for a while in large electricity and heat production plants,” says former energy minister Răzvan Nicolescu.

Banning individual boilers in new flats does not mean higher property prices

However, developers will no longer be able to allow the installation of their own power plants in apartments in newly built blocks.

According to representatives of the consultancy firm SVN, in terms of development costs, a general furnace in a building does not require a higher investment than installing individual boilers in each housing unit.

“From the point of view of general security, the building-related central furnace brings an obvious added security, and from the point of view of maintenance, each housing unit will be individually metered and would not imply cost increases,” SVN representatives told Economedia.

SVN Romania is one of the largest real estate consulting companies active in Romania and active in the residential segment, with over 20 new projects in its portfolio in Bucharest and in the country, with a total development potential of over 25,000 new homes. The company trades approximately 2,000 new homes annually in new projects alone, directly from the developer.

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