Cluj-Napoca 2018 Foreword Collecting Data and Using It to Better Understand How the City Works Is a Process Underlying Any Smart City
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Cluj-Napoca City Hall and Local Council Cluj-Napoca 2018 Foreword Collecting data and using it to better understand how the city works is a process underlying any smart city. The numbers allow us to see whether the evolution is in line with the city's long-term development strategy, but also assure us that we can take action as soon as possible, if needed, to redress trends in the targeted direction. This is why an endeavor coming from market specialists towards the community and local administration is all the more valuable, because it brings with it the expertise and effort of well documented people along with the constancy of analyzing this type of very specific data on an annual basis. Cluj is made up by the people of the city, and this is an example of good practice on how the local ecosystem of innovation can generate a context that will lead to the city's development. Transparency, communication and availability of the analyzed and processed data are elements that make the Real Estate Transactions Guide a very useful tool for the residents of Cluj and for those who choose Cluj as destination for their investments. Emil Boc Mayor of Cluj-Napoca 2 Dear readers, 67% of the money invested in real estate purchases came from Out of the EUR 214 million traded in the first 5 months of own resources in 2018, and the main destination remained 2019, apartment purchases remain the driver of the real The 6th Edition of the Real Estate Transactions Guide, carried the segment of apartments, with 64% of the total. estate market, accounting for 64% of the total, with 83% out by Veridio in partnership with the City Hall of Cluj- financed out of own resources. The average price/ square Napoca, is based on the information collected by the City Hall The 2018 average price per square meter for apartments is meter derived from the 1,899 apartment transactions carried from the sale-purchase agreements concluded in 2018, this 1,287 EUR/ sqm, up 6.3% from 2017, upholding Cluj-Napoca as out in 2019 is 1,333 EUR/ sqm, 3.6% higher than in 2018. The year also including a short section about the first 5 months of the city with the most effervescent real estate market in forthcoming edition will show the figures of the whole year 2019. Romania since the real estate crisis that commenced 10 years 2019. ago. As one more edition is added to the collection of the Cluj- We invite you to find many other interesting details by Napoca Real Estate Transactions Guide, it becomes more and The growing interest for this top region of the country browsing the pages of this new edition. more relevant, remaining a greenfield initiative for Romania. comes, in a significant proportion, from the neighboring counties, such as Maramureș, Bistrița-Năsăud, Alba, Sălaj, Adrian Vascu The 2018 real estate market in Cluj-Napoca witnessed an Mureș and Satu Mare, so that over 32% of the 2018 buyers intensive activity, with real estate transactions of over EUR Senior Partner Veridio come from other counties, and just under 2% come from 640 million, up 8% over the previous year. across the borders. 3 The districts of Cluj-Napoca Some key figures Did you know... Real estate transactions in 2018 Transactions with apartments Transactions with houses Transactions with plots of land Real estate transactions 2019 Conclusions 4 The districts of Cluj-Napoca At present, Cluj-Napoca's districts are: Centru, Zorilor, Mănăștur, Grigorescu, Gheorgheni, Andrei Mureșanu, Mărăști, Iris, Bulgaria, Dâmbul Rotund, Someșeni, Plopilor, Gruia, Între Lacuri, Bună Ziua, Europa, Colonia Sopor, Colonia Făget, Colonia Borhanci, Colonia Becaș and the adjacent area. The period of real estate expansion led to the densification of consecrated districts, respectively Gheorgheni, Mărăști, Andrei Mureșanu, Zorilor, Gruia, Grigorescu, Mănăștur, Plopilor, as well as looking for less dense areas, conducive to development, such as Câmpului (Mănăștur), Bună Ziua, Europa, Plopilor Noi, Făget, Becaș, Borhanci și Sopor. Source: Google Maps, Cluj-Napoca City Hall 5 Some key figures The total value of real estate transactions in 2018 was close to EUR 642 million, more than double compared to EUR 284 million traded in 2014 In 2018 the total value of transactions increased by 8% compared to the previous year and by 41% compared to 2016 The largest share of the total EUR 642 million was represented by the transactions with apartments, accounting for 64% of the total The average price per square meter of the apartments traded in 2018 was 1,287 EUR/ sqm, 8% higher than the average square meter price of 1,211 EUR/ sqm recorded in 2017 Real estate purchases funded by bank loans in 2018 accounted for 33% of the total value of transactions, compared to 31% in 2017. Acquisitions of individuals (81% of the traded value) were financed in excess of 80% from their own resources. Acquisitions of legal entities accounted for 19% of transactions value, and were predominantly financed by loans, approx. 92% 66% of the buyers come from Cluj county, while almost 32% come from other counties of the country, and less than 2% come from abroad. 6 Did you know... The most expensive house traded is located in the city center, Moţilor Street, and the transaction was completed at 650 thousand EUR Soporului Street is the street with the most valuable (~ EUR 45.7 million) The most expensive plot of land was traded in Borhanci district, for EUR and numerous transactions (672 transactions). 400 thousand The district with the fewest transactions is Făget, and the one with the Mănăştur remained the district with the most transactions (1,032 least valuable transactions is the Bulgaria district transactions), and the Center is the district with the most valuable Most transactions, as well as the highest monthly value of transactions, transactions in 2018 (~ EUR 73.6 million) were recorded in October, approx. EUR 67.5 million The most valuable transaction was concluded by a legal entity and The most frequent acquisitions of plots of land included areas between includes a commercial building worth over EUR 8.7 million located on 21st 500 and 1,000 sqm of December 1989 Apartments with area between 35-55 sqm were most frequently traded Acquisitions of legal entities represent 19.2% of transactions value 67% of real estate transactions are financed from own financial resources Top 10 most valuable transactions of legal entities account for more than 27% of the EUR 123.1 million traded by legal entities in 2018 Approximately 67% of the transactions concluded had a local buyer (Cluj County). 7 Real estate transactions 2018 The structure of the 2018 transactions was extracted from the database provided by the Local Tax Department of Cluj-Napoca City Hall, including 8,697 transactions, and is presented in the following table. Transaction structure in Cluj-Napoca 2018 District Type of property Financing Total Land House Apt. Other Self Bank Andrei Muresanu 6 34 289 71 325 75 400 Becas 10 14 35 15 57 17 74 Borhanci 28 50 228 51 254 103 357 Bulgaria - 14 16 25 43 12 55 Buna Ziua - 30 591 202 578 245 823 Centru 8 47 464 260 568 211 779 Dambul Rotund 14 73 178 112 254 123 377 Europa 3 25 234 87 245 104 349 Faget 7 12 10 5 27 7 34 Intre Lacuri 2 10 322 79 351 62 413 Gheorgheni 5 36 656 208 755 150 905 Grigorescu 10 18 216 39 236 47 283 Gruia - 31 35 27 69 24 93 Iris 37 66 459 161 453 270 723 Manastur 30 43 819 140 865 167 1,032 Marasti 2 10 339 127 349 129 478 Plopilor - 5 91 58 118 36 154 Someseni 10 32 126 57 140 85 225 Sopor 8 5 592 72 441 236 677 Zorilor 4 11 211 64 220 70 290 Other areas 162 4 - 10 173 3 176 Total 346 570 5,911 1,870 6,521 2,176 8,697 Source: Analysis of the database provided by Cluj-Napoca City Hall Note: The limits of the districts were established on the basis of the information provided by the Cluj-Napoca City Hall The analysis of apartment transactions is presented in detail at district level, with a total of 5,911 transactions. Transactions with residential properties, such as houses (land and building) have a non-homogeneous structure that does not allow a relevant analysis at district level, hence the conclusions were expressed globally. 8 Real estate transactions 2018 The total value of real estate transactions in 2018 was approximately EUR 642 million, of which apartments accounted for the most significant share, 64%. Value of real estate transactions in Cluj-Napoca in 2018 District Type of property Financing Total EUR Land House Apt. Other Self Bank Andrei Muresanu 287,092 6,930,725 20,866,015 4,372,207 25,047,743 7,408,295 32,456,038 Becas 300,952 2,357,264 2,774,591 947,653 4,265,549 2,114,911 6,380,460 Borhanci 1,452,712 7,847,229 16,043,907 3,455,892 19,696,341 9,103,400 28,799,741 Bulgaria - 1,378,463 725,722 506,333 1,907,214 703,304 2,610,518 Buna Ziua - 4,600,220 45,975,027 7,594,189 40,284,095 17,885,341 58,169,435 Centru 264,668 8,356,476 35,335,396 29,640,019 40,770,077 32,826,482 73,596,559 Dambul Rotund 411,253 8,332,776 10,331,685 7,122,902 14,975,658 11,222,958 26,198,616 Europa 288,501 4,354,243 16,760,519 3,583,788 17,277,513 7,709,538 24,987,051 Faget 682,500 2,560,406 1,050,032 127,933 3,071,016 1,349,855 4,420,871 Intre Lacuri 114,413 1,114,981 18,418,523 1,721,644 17,279,797 4,089,763 21,369,561 Gheorgheni 1,335,746 8,132,408 47,055,912 8,942,122 53,552,887 11,913,301 65,466,188 Grigorescu 429,282 2,872,517 16,138,198 3,778,792 18,367,150 4,851,640 23,218,790 Gruia - 4,349,677 2,439,076 640,482 5,903,392 1,525,843 7,429,235 Iris 1,095,949 6,682,874 23,506,430 18,736,390 22,346,408 27,675,236 50,021,644 Manastur 1,160,498