CLUJ-NAPOCA REAL ESTATE OVERVIEW

“In Cluj-Napoca, IULIUS Company is proposing a comprehensive urban regeneration project whereby the former Carbochim industrial platform will be reconverted and transformed into a mixed-use complex. This is an investment that adds up to more than half billion Euro. The park and open Someș River frontage will form the main anchor of the project, while all the other components (retail, office, cultural, entertainment and residential) complement and are consistent with the needs and expectations of the community, as determined by our consultations” Sorin Guttman, Project Manager of Carbochim Platform, Urban Regeneration Project

Authorities are working on one of the most important infrastructure investments – a new metro line. The new project is expected to redesign new interest hubs in regard to the local land market. According to local consultancy company Simon, Iuga & Partners, prices for permitted plots vary between 80-120 EUR/sqm for logistics development, 225 – 400 EUR for retail developments and 1,000 – 2,000 EUR/sqm for mixed-use (residential & retail) developments.

The world-class economic development is sustained by modern working infrastructure. The total stock of Class A office buildings in Cluj is 340,000 sqm, with expected future deliveries of 75,000 sqm. Iulius and Prime Kapital, in partnership with MAS Group committed to the reconversion of 14, respectively 17 ha of conveniently located industrial platforms – Carbochim and Cesarom.

Cluj-Napoca continues to be the most high-priced residential market nationwide, in the context of low levels of new offers. Data from real estate platform imobiliare.ro for Q3 2023 indicates that the residential medium price per sqm is 2,432 EUR in Cluj-Napoca, much higher than the one asked in the Capital City.

Cluj modern retail stock is 150,000 sqm, with a prime rent of 65 EUR/sqm/month. The retail density of 522 sqm per inhabitant is quite low in comparison to the accelerated economic development and the city’s appeal to youth. The retail density represents just 10^th place nationwide.

Cluj registers a well-rounded modern stock of industrial and logistics facilities, reaching more than 420,000 sqm. Cluj has a long history of industrial production, in particular heavy machinery, and construction materials, with a well-developed manufacturing & logistics infrastructure. The low vacancy rate (4.7%) is representative of the well-paced demand-based development, with only 20,000 sqm available on an immediate basis.

Music, sports, and film festivals reflect in Romania’s highest hotel pipeline. In the next three years (2024-2026), Cluj-Napoca has the highest hotel development pipeline from Romania: 593 rooms. In the last 10 years, Cluj-Napoca’s hotel market registered the highest increase in Romania at “5-star” category with 613 new rooms, as the data gathered by RPC from tourism consultancy company Est Hospitality show. The region’s future lies in its ability to pivot to the latest technologies and to attract the right talent.