• Lands and investments market analysis in Cluj Napoca in 2007

Lands and investments market analysis in Cluj Napoca in 2007

It is said that the best real estate investment is that made in lands. Lands have always been and will always be a winning card. For some years, prices have grown very much, Cluj being now on the first place 2 in the country, after Bucharest.
At first, the lands near the centre and within districts were purchased. Unfortunately for the builders there were not vast surfaces, or, rather, what still exists now values a great deal of money. They had no choice but to start building in the neighbourhood of the town or around the already existing districts. Thus appeared the areas known as Buna Ziua or Europa. If 4 years ago, the price on aquare metre in those areas was of only a few Euro, now the price for a piece of land, not extraordinary as far as location is concerned, values about 220 Euro/sm. From 2005 the price has practically become double.

This is how prices have evolved from 2005, in Buna Ziua and Europa:

    2005 – 90 de euro
    2006 – 140 euro
    2007 – 220 euro

Prices are purely orientative, representing the sum for each beginning of year. Prices vary according to the surface, location and the existence of utilities. With all these, it is still a profitable business for the investors on the land market in Cluj.
One should not ignore also the lands from the neighbourhood of Cluj (Faget, Floresti or Borhanci), if we think of buildings. In these areas several projects have been initiated even since the previous year, some of which have already been finalized. The lands in the area had however the same destiny as the lands in Cluj. Prices grew in a relatively short time from just a few Euro on aquare metre to approximately 60 Euro in Floresti or between 40 and 80 Euro/sm in Faget. So lands destined to the construction of dwellings or offices have been and still are profitable.
The same can be said about the lands destined to industrial constructions, the most requested area in Cluj-Napoca being Muncii Boulevard.
Prices in the area have evolved in the past two years as shown below:

2005 – 15 euro aprox
2006 – 40 euro
2007 – 80 euro


Prices are purely orientative, representing the sum for each beginning of year. Prices vary according to surface, location and the existence of utilities.

Even from the end of 2006, foreign investitors have become very interested in the lands from the area Muncii Boulevard. This came also as a consequence of the fact that since the 1st of January has been activating Law no 314/2005 regarding the achievement of the right of private property upon the lands by foreign or stateless citizens. They will have to wait 5 years to get into the possession of the title of property. This is not a matter of concern if one takes into account the attractive prices, the cheap labour and the continually developing local market; as prices grow rapidly, trying to reach the level of the countries member of the European Union, it is a profitable investment on a relatively short span of time.
Analysts say that the local land market will evolve constantly, for the current year being expected a raise with maximum 30% in the periphery areas of Cluj and up to 20% inside the city, these rates holding only if the market keeps its rhythm constant; analysts believe 99% that the market will follow this path.
One thing is for sure! Prices will not decrease, there will be even more investors, and the fact that Romania is a developing country only makes it even more attractive for the Romanian, as well as for the foreign, who look for investments efficient on short and mean term.