ESG Integration in Residential Real Estate: The Case of Constanța, Romania

This study examines the integration of Environmental, Social, and Governance (ESG) principles within Romania’s residential real estate sector, concentrating on Constanța, a rapidly evolving urban centre in a transitional economy. Drawing on qualitative data from semi-structured interviews with local real estate professionals and secondary analysis of policy and market documents, the research uncovers inconsistencies in ESG implementation. Environmental compliance is advancing, largely driven by EU regulations such as the European Grean Deal, the Corporate Sustainability Reporting Directive and the Energy Performance of Buildings Directive. Voluntary certification schemes like BREEAM and LEED are emerging as benchmarks for environmental performance; however, their uptake remains limited and insufficiently tailored to local conditions. Meanwhile, the social and governance dimensions lag behind, characterised by inconsistent application and weak institutional backing. Key barriers to effective ESG integration in Romania’s residential real estate sector include weak regulatory enforcement, fragmented policies, limited green finance, low awareness, and a lack of standardised social value metrics. The study concludes that without moving beyond mere regulatory compliance to a framework embedding social inclusivity and adaptive governance, ESG efforts risk perpetuating existing inequalities. It calls for a reconceptualisation of ESG frameworks, developed for mature markets, to better suit transitional urban contexts and support long-term resilience in residential real estate.