Sibiu and Cluj - cities with high potential after January 2007
Sibiu, a beautiful city situated in the centre of Romania and south of Transylvania, recorded huge increase in property prices over 2006. No matter how much the prices rose in 2006, the trend is likely to continue during 2007 as this year Sibiu is the Cultural Capital of Europe. Apart from the cultural impact of the event, Sibiu went through a city-wide ‘refurbishment’ in order to be equipped for this year. As a result, the leisure opportunities and overall look of the city improved, changed which will obviously impact on the housing market. Currently, the prices of old house in the city centre reach €100,000; central land prices also increased to a staggering €6,000/sqm for certain plots.
Cluj is another good alternative for investment outside Bucharest, as it is one of the most important financial and banking centres of Romania after Bucharest. The city, known along the history as the main political and administrative centre of Transylvania, will continue to see a high increase in land prices during 2007.
Due to its geographic position (based around hills and mountains), it is very difficult to find land for development of new residential properties, and therefore the focus remains on the existing properties. In addition, due to the large number of students coming every year to study in Cluj and the demographic increase produced by its booming economy, the demand for new properties exceeds the present offer with no sign of change for at least another year.
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Posted: January 9th, 2007 under Property Development, Reviews.
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