Cluj is a beacon of entrepreneurial success among Romanian regional leaders and Cluj 2.0 is under development.
Over 3 billion EUR of major investments are underway, in key development pillars, such as transportation, healthcare, and education infrastructure.
Its youthful and entrepreneurial vibe appeals to over 700,000 inhabitants (county level), out of which 287,0000 live in Cluj-Napoca, the county’s capital. It is important to note that almost two-thirds of inhabitants in Cluj reside in urban areas, whereas the national average is lower by 10%. A higher urbanization level is generally perceived as a sign of economic development. Cluj’s 24,900 EUR GDP per capita is the second highest level in the country, a consistent spot over the years.
The strong economic development is fuelled by the second-largest population of students -72,000. Babes-Bolyai University is consistently the highest-ranked university in Romania, number 15 in Eastern Europe and 260th in Europe. IT represents the forefront of Cluj’s development. Outstanding performers include: video ad software company LiveRail, that got acquired by Meta in 2014 for 400-500 million EUR; Softvision, Fortech, and EBS were purchased by global giants such as Cognizant ($ 550 million), GlobalLogic/Hitachi (240 million EUR), and NTT Data (not disclosed). AROBS maintained its dominant Romanian DNA by choosing to list on the Bucharest Stock Exchange.
The IT industry is not the only success story in Cluj. Cluj is home to Untold, one of Europe’s top three music festivals (together with Tomorrowland – Belgium and Glastonbury – United Kingdom). Transylvania Open is the only WTA250 tour in Romania and one of the three most representative in CEE (next to Prague and Warsaw). Transylvania Film Festival, enduring for more than 21 years, is part of the International Federation of Film Producers Associations, an accredited international network of film festivals (including Cannes, Toronto, Venice, and Berlin). Electric Castle completes the list of successful ambitious cultural business stories.
Cluj-Napoca is a good example of public administration serving the needs of an evolving community. In partnership with the metro areas and county councils, the Cluj City Hall started the development process of increasing school capacity to reflect the growth in population and layout of the new city. Floresti, one of the largest suburban areas in Romania, secured non-refundable financing to increase school seats by 3,000. In Borhanci, the public administration is building a 100 million EUR educational hub with a nursery, kindergarten, I-XII school, sports facility, and Olympic swimming pool. This represents just half of the total investment in the educational infrastructure in Cluj-Napoca. These initiatives secure a bright future for the young generation and contribute to traffic decongestion.
All of these projects mentioned above are a vector for an increase in population, with a positive domino effect on real estate and business growth. Cluj will sustain new residential buildout, retail schemes, and office parks, as the city appeals to human capital due to its youthful vibe and resilient economy.
Other projects run by public administration with a clear purpose of improving the quality of life in Cluj are the 54 ha East Park, for which eminent domain procedures began this year; a 71 million EUR investment in the central heating system; and a 100 million EUR refurbishment of the Palace of Justice.
It is important to note that these initiatives are completed by the Avram Iancu Airport 80 million EUR completed investment in a new departures’ terminal. The buildout helps increase the yearly capacity to 4.5 million travellers. In 2023, the total flow of passengers was 3.24 million, 10 times more than a decade ago, reflecting the economic, cultural, and leisure powerhouse Cluj grew into.
The biggest private investment from Romania in an urban reconversion, the former Carbochim platform by Iulius, recently received the approval for Urban Zoning Plan.
Rivus represents a half of a billion EUR investment, with multiple functions, a green project, with a focus on culture, which gives back to the city a grey area, totally inaccessible to Cluj. It is a natural continuation of the experience gained by Iulius, in the last decade, through the development of major urban regeneration projects in the country’s major cities.
The concept is signed by the Dutch architecture office UNStudio, renowned for its work worldwide.
The project proposes the implementation of good international practices regarding the integration of industrial heritage elements in a real estate investment, by preserving some buildings that symbolize the identity of the place – the hall with arches and the administrative building are the buildings with environmental value for which this could be achieved, according to studies and expertise.
