5 th Edition august Cluj-Napoca City Hall and Local Council

Transcription

1 5 th Edition august 2018 Cluj-Napoca City Hall and Local Council

2 Foreword Dear readers, The 5th edition of the Real Estate Transactions Guide was launched today, shaped as a unique project in Romania, performed by Veridio in partnership with Cluj- Napoca City Hall. The guide is based on the information gathered by the City Hall from the real estate sale-purchase agreements. The Cluj-Napoca Real Estate Transactions Guide is an extremely valuable analysis, for real estate investors on the second largest real estate market of Romania, as well as developers and real estate agents, market analysts, banks and appraisers. As the 2nd most populated city in Romania (after Bucharest), however only 4th by area, the real estate market is expected to become more competitive and data from 2017 shows a 30% y-o-y growth rate of the real estate transactions' value in Cluj, reaching almost EUR 600 mil., of which 69% was financed from own resources, down from 83% in An interesting comparison could be made between the real estate market growth rate (30%) and the GDP/capita in Cluj-Napoca, which grew by only 8.2% compared to previous year. What does a transaction value of almost EUR 600 mil. stand for? Over twice as much as the city's budget (currently EUR 257 mil.) or the estimated cost of the subway project for the city. Noteworthy, in the first edition of the guide (2013), the Cluj real estate market reached approximately EUR 200 mil. (annualized), thus the market grew 3 times within 4 years. Also, the average unit price for apartments derived from sale-purchase agreements is 1,211, 20% higher than the previous year (1,000 ). As such, Cluj is ranked second by average price/sqm, after the 1st District of Bucharest. However, not all neighbourhoods are similar, since the average price varies from 863 to 1,367. The Cluj-Napoca Real Estate Transactions Guide comprises a series of analyses on different market segments, supporting both the buyers (residential/investment real estate) and the sellers (individuals, developers, realtors, banks) in the decision-making process in Thus, together with our partners - the Cluj-Napoca City Hall, we hope to contribute to a consistent and sustainable development of the real estate market. This year we also introduced a new statistic in regards to the origin of the buyers, surprised to discover that only 69% of the purchasers are from Cluj county, while almost 29% come from other counties of Romania and a bit over 2% are buyers from abroad. Top buyers from other counties come from Bistrita Nasaud, Maramures, Salaj, Alba, Mureș and Satu Mare, which are located in the proximity of Cluj county. Feel free to discover all the valuable information within the 5th edition of the Real Estate Transactions Guide. Until the 2019 edition, I wish you profitable real estate transactions! Adrian Vascu Senior Partner Veridio 2 Cluj-Napoca@2018

3 Cluj-Napoca and the real estate market in 2017 Cluj-Napoca General information Culture Honors Tourism Industry Sport The 4th largest city in Romania (area: 179,5 km2) The 2nd city by population size in Romania with over 320,000 inhabitants in 2017, plus approx. 80,000 students annually Renowned medical center: 31 hospitals Established center of higher education: 11 universities, the most wellknown are: Babes-Bolyai University, Technical University of Cluj-Napoca, Iuliu Hatieganu University of Medicine and Pharmacy Cluj-Napoca In 2017 the GDP/capita of Cluj county grew by 8.2% compared to the previous year. Host of Pria Urban Innovation (urban innovation event) Host of International Mathematical Olympiad in 2017 Finalist of the European Capital of Culture title for 2021 Cultural centers like: Old Casino, the fortress, Marasti and Dacia cinemas, the history, art, pharmacy, ethnographic etc. museums Events: TIFF, Opera Aperta, Musical Autumn of Cluj festival, Summer evenings in Cluj, Hungarian Cultural days, Filarmonica Transilvania etc. 4 th place in the Forbes Best Cities 2017 ranking (Forbes Romania) Included in the The quality of life in 2017 (Numbeo ranking on a global scale) 3rd safest city in Romania - Gruia and Grigorescu districts are considered the safest districts at national level (Storia.ro and D&D Research) Award for excellence in digitalization in 2017 in the field of public administration The most attractive secondary city in Romania according to the Magnetism Index 111 accommodation units, with capacity of 6,216 beds, in 2017 (INSSE) Over 470,000 tourists in 2017 (approx. 27% more compared to 2016) Significant events: Untold, Electric Castle, Jazz in the Park, TIFF, delahoya music festival, Cluj- Napoca Marathon, Gaudeamus fair, Techsylvania, Street Food Festival etc. Tourist landmarks: Unirii Square, Muzeului Square, the Fortress Hill, Botanical Garden, the Central Park, the Paintbrush Factory, museums, architectural monuments etc. IT and outsourcing service center (often referred to as Europe s Silicon Valley) Main sectors: IT, services, medicine Significant companies: : Banca Transilavania, De Longhi, Electrogrup, Farmec, Arobs, Terapia, Endava, NTT Data, Softvision, AROBS, Ducfarm etc. Business event center such as Cluj Business Days 2017 Investment funds to support start-ups: Risky Business, Start-up Nation etc. European City of Sport 2017 Sports facilities including CFR Cluj Stadium, Cluj Arena, Cluj Arena, Polyvalent Hall, Gheorgheni sports complex, Iuliu Hatieganu sports park etc. Polyvalent Hall from Cluj- Napoca is the biggest in Romania Host city in 2017 for European Artistic Gymnastics, European Men's Basketball, European WUKF Karate and Fudokan Karate Championships, IBSA General Assembly, national soccer team games etc. 3 Cluj-Napoca@2018

4 Key figures The total value of the real estate transactions in 2017 was nearly EUR 594 mil., more than double compared to 2014 (EUR 284 mil.) In 2017 the total value of the real estate transactions increased by 30% compared to the previous year, respectively by 66% compared to 2015 The transactions of apartments account for 63% (largest share) of the real estate market of EUR 594 mil. The average price per sqm for traded apartments was 1,211 in 2017, compared to 1,000 in 2016, 873 in 2015 and 836 in 2014 Transactions funded through bank loans accounted for 31% of the total market in 2017 compared to 17% in 2016, 26% in 2015, respectively 16% in % of the buyers come from Cluj County, while almost 29% come from other counties of the country, and just over 2% come from across the border 4 Cluj-Napoca@2018

5 Did you know? Calea Manastur is the street with the most transactions (327 transactions) and highest value of transactions (~EUR 24.2 mil.) Becas is both the district with the lowest number of transactions and the lowest total value of transactions December is the month with the largest number of transactions as well as the highest monthly value of transactions (approx. EUR 79.1 mil.) Plots of land with areas between 500-1,000 sqm were most frequently traded Apartments with area between sqm were most frequently traded 69% of the real estate transactions were self-financed The most expensive house traded in Cluj-Napoca in 2017 is located around Motilor St. (EUR 0.6 mil.) The most expensive plot of land was traded in Borhanci district, for EUR 1.1 mil. Most transactions took place in Manastur district (1,431 transactions), which was also the district with the highest value of real estate trades (~EUR 88.7 mil) The most valuable transaction (over EUR 8.4 mil.) was concluded by a legal entity and comprised a commercial building located around Dorobantilor St. Acquisitions performed by legal entities account for 18.2% of the total value of the transactions Top 10 most valuable transactions performed by companies account for 28% of the total trades performed by legal entities (EUR mil.) in 2017 Approximately 70% of the volume of transactions was concluded by local buyers (from Cluj County) Value wise, 29% of the transactions were concluded by buyers from other counties, with Bistrita Nasaud leading with 4% of the total value of the transactions registered in the city of Cluj- Napoca 5 Cluj-Napoca@2018

6 Cluj-Napoca real estate transactions 2017 The structure of the real estate transactions extracted from the database provided by the Local Tax Department of the Cluj-Napoca City Hall is presented in following table: The structure of the real estate transactions in Cluj-Napoca in 2017 District Type of property Financing Total Land House Apt. Other Self Bank Andrei Muresanu Becas Borhanci Bulgaria Buna Ziua Centru Dambul Rotund Europa Faget Intre Lacuri Gheorgheni Grigorescu Gruia Iris Manastur , , ,431 Marasti Plopilor Someseni Sopor Zorilor Other areas Total ,641 2,118 6,858 1,914 8,772 Our analysis of transactions with apartments (5,641) is presented in detail. 403 houses, including land and buildings, were traded in different districts of the city. Their typology and structure do not allow a detailed and relevant analysis by district. Similarly, conclusions regarding 610 plots of land traded are not detailed by district. 6 Cluj-Napoca@2018

7 Cluj-Napoca real estate transactions 2017 In 2017, the total value of the real estate transactions is approx. EUR 594 mil., with apartments accounting for 63% of the real estate transactions. 69% of the real estate transactions (value) were self-financed. Value of real estate transactions in Cluj-Napoca in 2017 District Type of property Financing Total EUR Land House Apt. Other Self Bank Andrei Muresanu 2,374,569 8,382,198 20,357,722 3,668,842 26,768,623 8,014,708 34,783,331 Becas 612,351 1,324, , ,488 2,160, ,488 2,910,085 Borhanci 4,895,368 4,701,626 13,977,908 2,501,846 19,155,071 6,921,677 26,076,748 Bulgaria 159,500 1,181,858 2,523,525 1,935,161 4,522,428 1,277,616 5,800,044 Buna Ziua 806,213 2,875,858 31,911,012 3,826,787 26,703,201 12,716,669 39,419,870 Centru 839,166 8,286,922 41,951,987 30,323,755 51,794,470 29,607,359 81,401,829 Dambul Rotund 2,623,983 5,886,860 9,863,300 10,105,047 18,702,554 9,776,635 28,479,189 Europa 1,084,641 2,419,217 5,251,618 1,290,831 8,016,257 2,030,050 10,046,307 Faget 1,435,310 2,821,070 1,608, ,840 3,676,228 2,508,207 6,184,435 Intre Lacuri 12,987 1,222,029 21,724,897 3,429,447 20,662,966 5,726,394 26,389,360 Gheorgheni 280,000 3,033,858 43,549,614 8,603,266 43,704,977 11,761,760 55,466,737 Grigorescu 652,738 1,704,052 18,932,975 3,874,383 16,670,422 8,493,726 25,164,148 Gruia 272,500 3,977,903 4,272,295 1,712,016 7,318,396 2,916,318 10,234,714 Iris 3,177,634 4,364,017 12,740,789 6,973,583 14,753,606 12,502,417 27,256,022 Manastur 4,002,894 2,530,294 69,017,673 13,241,313 64,942,220 23,849,954 88,792,174 Marasti 906, ,682 33,043,255 17,529,794 29,706,194 22,627,471 52,333,665 Plopilor 6, ,295 6,574,541 2,866,902 6,672,087 3,610,658 10,282,746 Someseni 693,231 1,447,470 11,992,347 3,107,867 12,105,182 5,135,732 17,240,915 Sopor 4,663, ,018 7,934, ,127 8,526,539 5,440,124 13,966,663 Zorilor 717,149 3,314,501 18,995,067 6,249,959 23,261,563 6,015,112 29,276,675 Other areas 2,490, ,000-69,292 2,622,727 67,550 2,690,277 Total 32,707,400 61,733, ,987, ,767, ,446, ,749, ,195,934 7 Cluj-Napoca@2018

8 Cluj-Napoca real estate transactions Transactions with apartments Source: Google Maps, Cluj-Napoca City Hall Note: District limits were established based on information provided by Cluj-Napoca City Hall Transactions with apartments Cluj-Napoca Transactions with apartments in Cluj-Napoca District Trans. no. Surface Val. trans. Avg. price sqm EUR'000 Andrei Muresanu ,996 20,358 1,198 Becas Borhanci ,385 13,978 1,044 Bulgaria 65 2,924 2, Buna Ziua ,933 31,911 1,142 Centru ,451 41,952 1,293 Dambul Rotund 186 9,679 9,863 1,019 Europa 58 4,510 5,252 1,164 Faget 15 1,482 1,608 1,086 Intre Lacuri ,603 21,725 1,234 Gheorgheni ,852 43,550 1,367 Grigorescu ,201 18,933 1,246 Gruia 62 3,684 4,272 1,160 Iris ,863 12,741 1,074 Manastur 1,054 57,051 69,018 1,210 Marasti ,446 33,043 1,249 Plopilor 79 5,312 6,575 1,238 Someseni ,159 11,992 1,075 Sopor 115 6,634 7,934 1,196 Zorilor ,437 18,995 1,316 Total 5, , ,988 1,211 Description Financing Area Age Total Bank Cash > <35 <2000 >2000 Trans. no. 1,013 4, ,594 2, ,597 3,044 5,641 Trans. val. (EUR'000) 74, ,731 86, , ,678 29, , , ,988 Median u.p. () 1,196 1,212 1,120 1,182 1,248 1,327 1,263 1,173 1,006 Avg.u.p. () 1,195 1,215 1,120 1,200 1,256 1,354 1,256 1,178 1,211 Number of transactions: 5,641 Value of transactions: EUR 377 mil. Traded net area: 311,376 sqm Most transactions: area between sqm Apt. built after 2000: 58% of the value of transactions Self-financed: 80% of the value of transactions Average price: 1,211 Average price bank-financing: 1,195 Average price self-financing: 1,215 8 Cluj-Napoca@2018

9 Cluj-Napoca real estate transactions Transactions with houses Number of houses: 403 Value of transactions: EUR 61.7 mil. Aprox. 51% of the value of transactions: Andrei Muresanu, city centre, Dambul Rotund, Borhanci and Iris The largest number of transactions with houses: Dambul Rotund, Andrei Muresanu, Borhanci, Iris and city centre Normalized sample: 294 houses Value of transactions: EUR 45.4 mil. Avg. land area of a house: 456 sqm Transactions with houses in Cluj-Napoca (normalized sample) Avg. GBA of a house: 204 sqm Avg. price: 757 (computed by division with GBA, includes the land value) Avg. house price <1990: 739 Avg. house price >1990: 765 Self-financing: 77% of transactions value Description Financing Age Total Bank Cash <1990 >=1990 Number of transactions Value of transactions (EUR'000) 12,055 33,431 13,306 32,180 45,486 Gross built area (sqm) 13,405 46,648 17,998 42,054 60,053 Land area (sqm) 31, ,516 44,934 89, ,055 Avg. land area (sqm) Avg. gross built area (sqm) Avg. unit price ( GBA) Note: To obtain a normalized sample of transactions, from the 403 transactions with houses we selected houses with a min 150 sqm area of land and a min 80 sqm GBA with a FAR (Floor Area Ratio) between 0.2 and 1.2; these transactions represent 79% of the total value of transactions with houses. Transactions with houses in Cluj-Napoca District Trans. No. Val. Trans. EUR'000 Andrei Muresanu 36 8,382 Becas 7 1,325 Borhanci 33 4,702 Bulgaria 12 1,182 Buna Ziua 23 2,876 Centru 31 8,287 Dambul Rotund 54 5,887 Europa 13 2,419 Faget 21 2,821 Intre Lacuri 11 1,222 Gheorgheni 17 3,034 Grigorescu 15 1,704 Gruia 27 3,978 Iris 33 4,364 Manastur 17 2,530 Marasti Plopilor Someseni 15 1,447 Sopor Zorilor 19 3,315 Other areas Total ,733 9 Cluj-Napoca@2018

10 Cluj-Napoca real estate transactions Transactions with plots of land Transactions with plots of land in Cluj-Napoca Number of plots of land: 610 Value of transactions: EUR 32.7 mil. Over 51% of transactions value: Borhanci, Sopor, Manastur and Iris The largest number of transactions with plots of land in: Iris, Sopor, Manastur, Borhanci and Dambul Rotund Total land area traded: 879,542 sqm Most numerous transactions areas between 500-1,000 sqm Most valuable transactions areas over 1,000 sqm Self-financing: 99% of transactions value Description Financing Area Total Bank Cash <100 mp sqm sqm sqm >1000 sqm Trans. no Trans. val. (EUR'000) 2,357 30, ,307 11,000 18,567 32,707 Area (sqm) 11, ,561-9,518 20, , , ,542 Transactions with plots of land in Cluj-Napoca District Trans. no. Area Val. Tranz. sqm EUR'000 Andrei Mures anu 15 11,077 2,375 Becas 11 9, Borhanci 58 79,985 4,895 Bulgaria 4 2, Buna Ziua 14 11, Centru 6 3, Dambul Rotund 43 39,245 2,624 Europa 11 9,578 1,085 Faget 18 18,876 1,435 Intre Lacuri Gheorgheni Grigores cu 7 4, Gruia 3 1, Iris 89 76,084 3,178 Manas tur 59 76,810 4,003 Maras ti 6 4, Plopilor Somes eni 13 8, Sopor ,963 4,663 Zorilor 3 2, Other areas ,007 2,491 Total ,542 32, Cluj-Napoca@2018

11 Evolution of the real estate market in Cluj-Napoca mil. 600 mil. Evolution of real estate transactions market mil mil. 457 mil mil. 358 mil mil. 200 mil. 200 mil. 284 mil mil mil Transactions mil. 600 mil. 500 mil. Evolution of the financing structure (Self-finance/ Bank) 400 mil. 300 mil. 200 mil. 100 mil. 0 mil. 412 mil. 379 mil. 83% 266 mil. 74% 240 mil. 84% 153 mil. 77% 182 mil. 92 mil. 47 mil. 23% 44 mil. 16% 26% 78 mil. 17% % 31% Bank Self-finance 11 Cluj-Napoca@2018

12 Evolution of the real estate market in Cluj-Napoca mil. Evolution of the transaction type (Apt./ Houses/ Plot of lands/ Other propr.) 600 mil. 33 mil. 500 mil. 400 mil. 16 mil. 20 mil. 61 mil. 62 mil. 123 mil. 300 mil. 200 mil. 100 mil. 140 mil. 15 mil. 20 mil. 25 mil. 16 mil. 36 mil. 63 mil. 169 mil. 51 mil. 64 mil. 226 mil. 88 mil. 287 mil. 377 mil. 0 mil Apartments Other properties Houses Plots of land 1,400 /sqm 1,200 /sqm 1,000 /sqm 800 /sqm 600 /sqm 400 /sqm 200 /sqm 0 /sqm Evolution of apartment transactions Cluj-Napoca ,211 /sqm 1,000 /sqm 821 /sqm 836 /sqm 873 /sqm 140 mil. 169 mil. 226 mil. 287 mil. 377 mil mil. 350 mil. 300 mil. 250 mil. 200 mil. 150 mil. 100 mil. 50 mil. 0 mil. Transaction value Average unit price 12 Cluj-Napoca@2018

13 Conclusions Real estate transactions Cluj-Napoca 2017 Real estate transactions Cluj-Napoca 2017 Number: 8,772 transactions Value: EUR mil Apartments Number: 5,641 transactions Value: EUR mil. Houses Number: 403 transactions Value: EUR 61.7 mil. Plots of land Number: 610 transactions Value: EUR 32.7 mil. Other properties (transactions performed by legal entities, transactions with commercial/ office/ industrial/ auxiliary real estate properties) Number: 2,118 transactions (legal entities: 834 transactions accounting for 39% of total) Value: EUR mil. (legal entities: EUR mil. accounting for 88% of total) 13

14 Conclusions Summary of transactions with apartments by district Cluj-Napoca 2017 Avg. price apartments: Avg. price bank financing: 1,195 1,211 Avg. price selffinancing: 1,019 1,160 1,249 1, ,234 1,075 1,215 1,246 1,238 1,210 1,293 1,316 1,198 1,367 1,196 1,164 1,142 1,044 1, Source: Google Maps, Cluj-Napoca City Hall Note: District limits were established based on information provided by Cluj-Napoca City Hall 14

15 Appendices Various statistics Monthly structure of real estate transactions in Cluj-Napoca in 2017 Month Type of property Financing Total EUR Land House Apt. Other Self Bank January February March April May June July August September October November December Total ,641 2,118 6,858 1,914 8,772 Monthly value of real estate transactions in Cluj-Napoca in 2017 Month Type of property Financing Total EUR Land House Apt. Other Self Bank January 722,625 2,431,895 15,904,395 7,070,369 16,772,020 9,357,264 26,129,284 February 1,531,772 4,626,685 30,014,982 8,945,998 31,494,651 13,624,785 45,119,436 March 4,397,125 3,775,964 28,345,882 6,743,416 32,152,046 11,110,341 43,262,387 April 2,150,047 5,848,276 23,649,274 6,960,386 26,388,797 12,219,186 38,607,982 May 3,731,225 5,682,609 29,593,758 8,085,541 33,520,427 13,572,706 47,093,133 June 3,004,371 8,106,553 31,776,956 6,826,716 37,759,376 11,955,220 49,714,596 July 3,223,191 6,493,552 31,106,487 4,801,069 33,803,407 11,820,891 45,624,298 August 2,776,971 5,425,290 29,471,748 11,867,765 31,987,185 17,554,589 49,541,773 September 2,841,883 5,710,698 43,245,477 8,489,595 45,829,548 14,458,106 60,287,654 October 2,097,535 4,942,500 38,120,691 12,893,366 39,769,274 18,284,818 58,054,093 November 4,027,469 3,219,182 36,183,192 8,231,207 38,081,883 13,579,167 51,661,050 December 2,203,186 5,470,270 39,574,675 31,852,118 44,887,695 34,212,554 79,100,248 Total 32,707,400 61,733, ,987, ,767, ,446, ,749, ,195, The streets with the largest number of transactions No. Street No. of trans. crt. 1 Calea Manastur Buna Ziua Borhanciului Soporului Bologa Valeriu Sobarilor Calea Turzii Cojocnei Ploiesti Aurel Vlaicu 132 Top 10 1,909 Total transactions ,772 % Top 10 of Total 22% The streets with the most valuable transactions No. Street Trans. val. (EUR) crt. 1 Calea Manastur 24,211,334 2 Buna Ziua 19,227,887 3 Dorobantilor 14,974,885 4 Soporului 13,010,515 5 Bologa Valeriu 12,566,948 6 Borhanciului 12,221,040 7 Calea Turzii 9,903,555 8 Ploiesti 9,901,311 9 Aurel Vlaicu 8,679, Grigore Alexandrescu 8,011,913 Top ,708,521 Total transactions ,195,934 % Top 10 of Total 22%

16 Appendices Various statistics Structure of real estate transactions in Cluj-Napoca in by origin of the buyer Buyer Type of property Financing Total Land House Apt. Other Self Bank External Romania from which: ,519 2,105 6,708 1,913 8,621 County Cluj ,693 1,621 4,796 1,386 6,182 County Maramures County Bistrita Nasaud County Salaj County Alba County Mures County Satu Mare County Bihor County Hunedoara County Suceava County Sibiu Other Counties Total ,641 2,118 6,858 1,914 8,772 Value of real estate transactions in Cluj-Napoca in by origin of the buyer 16 Cluj-Napoca@2018 Buyer Type of property Financing Total EUR Land House Apt. Other Self Bank External 852,923 1,076,855 9,064,654 3,483,008 14,413,390 64,050 14,477,440 Romania from which: 31,854,477 60,656, ,922, ,284, ,032, ,685, ,718,494 County Cluj 26,828,322 49,948, ,597,991 86,576, ,161, ,789, ,950,718 County Maramures 600,468 1,551,500 17,851,458 2,042,139 17,274,376 4,771,189 22,045,565 County Bistrita Nasaud 594, ,297 15,854,635 6,560,609 16,555,139 7,133,345 23,688,484 County Salaj 97, ,227 13,276,671 1,595,176 11,842,955 3,982,175 15,825,130 County Alba 322, ,549 11,895,956 5,966,507 13,271,022 5,659,399 18,930,421 County Mures 1,446, ,989 11,251, ,795 10,648,175 3,281,910 13,930,084 County Satu Mare 772,192 1,294,704 11,498,200 1,134,683 11,939,368 2,760,412 14,699,780 County Bihor 95, ,500 6,685, ,998 6,408,934 1,332,049 7,740,983 County Hunedoara 121, ,026 5,226, ,587 4,805,154 1,736,070 6,541,224 County Suceava 134, ,188 4,895, ,917 4,144,747 1,519,965 5,664,712 County Sibiu 210, ,323 4,456,220 1,338,774 4,999,265 1,758,269 6,757,534 Other Counties 631,137 2,875,182 19,432,458 12,005,081 18,982,316 15,961,542 34,943,858 Total 32,707,400 61,733, ,987, ,767, ,446, ,749, ,195,934

17 Sources of information Database with real estate transactions provided by the Local Tax Department of the Cluj-Napoca City Hall Wikipedia Google Maps Wikimapia Project coordinated by Adrian Vascu, Senior Partner Veridio, member of ANEVAR Board ANEVAR and and member of UPLR'S Executive Board (President) Team: Paul Bândea, Anca Bândea, Bianca Moiș, Paula Teodorescu, Larisa Becheș with the support of Photo credit: Bogdan Cojocaru and Groza Adina 17

18 Cluj-Napoca City Hall and Local Council