Hi Accession,

We also operate in Cluj. We not only sell, but also administer after selling. Send me a private message and let's talk more about it.

Best regards,
Diana Marinescu
Managing Partner Transylvania Investment

I am told that the mortgages that are being offered to non-residents in Romania are not really mortgages ie they are not secured against the property and are in reality a personal loan with pretty steep terms.

So for Cluj, its not an attractive city and there is no obvious reason for tourists to go there. So growth will be only from local demand. The outskirts of the city are already very built up with communust apartment blocks.

You are wrong about Cluj, Anna. It's not all about tourism. Cluj is a major university town, so where there is knowledge and universities there are only business going on.

All I'm saying is that of the major Romanian towns/cities Cluj probably has less going for it than most. Both the town centres and the surrounding areas are more attractive in Brasov, Sibu and Sighisoara. And Timisoara has a better university.

I agree about Brasov and Sibiu (in Brasov there are many new developments but they are too dear in my opinion, the properties in the centre have better prices and they are easier to rent) Sibiu is a town with a very good perspective for the future and the prices of properties are generally small.
It also has the German influence both in architecture and in the mentality of the inhabitants.
Sighisoara is historical place, but rather small.
I can't pass any judgements about the ranking of the universities in Timisoara. Cluj is however an important university centre and attracted many investments lately.

I think Romania is a beautiful country with great investment potential and I think the general rise in the market will have an effect in Cluj as well. I just can't see why an investor who can invest anywhere in Romania would pick Cluj.

Sibiu's Saxon mayor has done a lot for the town already. Do you know if the renovation on the main square has finished yet?

Sighisoara is a World Heritage Site and has the best preserved Saxon architecture in the country. The level of tourism here will explode over the coming years.

So why Cluj? Has there been a lot of industrial investment there recently?

Hi Anna, never said you SHOULD invest in Cluj! I have only said there are many investments there and new developments sell fast. I am talking industry, commerce, developments, etc. How long will these tendencies last I can't predict. What I don't like about Cluj (same for Bucharest) is they develop chaotically.
Yes, Sibiu's restoration is almost completed everywhere in the Old Quarter, the Big Square looks fantastic! We sell especially in Sibiu and Brasov actually. The prices in Sibiu are very good for investment nowadays and I expect them to grow in 1 year or so.
Sighisoara is undoubtedly a beautiful and historic place, however it is too small for industry, big business, etc. its main attraction is tourism and actually that is a good industry too, however medium size. So in terms of investment I don't think you can get a good annual rental return if you buy in Sighisoara. Would be nice if we investment oportunities would be judged simply from the point of view of architectural/historical significance, but unfortunately it is not quite so.

What are your views on investing in land rather than property aroun the major cities?

A few years ago land was ridiculously cheap. Nowadays land is rather expensive particularily in touristic areas. Another issue about land is property titles that have to be checked and are not in order all the time. Another issue is related to reselling the land. Even if the price is good when investors buy, they have difficulties in reselling their plots later when they add the capital growth.
Romania has unfortunately a bad infrastructure and that nearly cuts off interesting parts of the country. Due to this, big areas remain undeveloped while others such as Bucharest are overpopulated. Unfortunately the state is putting money in the already developed areas, leaving aside the less developed ones. So even if there is potential it cannot be valued unless opportunity is created.
Bucharest infrastructure itself is very bad and it is ridiculous for an EU capital to have only 1 ring road!
Because of these aspects I tell people to buy land in areas around the major cities, land with development potential, if they can find for a reasonable price of course.

OK

I got a heads up that villas are being launched on Saadiyat. The office opens tomorrow from 6:45 to call and make appointments. You probably are aware already - but here is the number "Saadiyat island villas launched sunday - have to call 600 522299 from 6.45am to confirm appointment."