THE ECONOMIC CONTRAST OF CLUJ-NAPOCA

Cluj-Napoca, also known as the „Heart of Transylvania”, is often marketed as a beacon of progress in post-revolutionary Romania, a story of remarkable economic progress. Its metamorphosis into a EU-level technological center, a ”local Silicon Valley” has attracted a constant flow of investments, human capital and innovation, pushing the city in to the forefront of national development. With its county’s GDP reaching 74.302,7 million RON in 2022 according to most recent data, and one of the lowest unemployment rates in the country, Cluj-Napoca is sure on its own image of a prosperous city full of opportunities.

Despite its considerable economic rise and the continuous influx of funding, talent, and cutting-edge ideas that fuels its image of economic well-being, there is a hidden, unspoken side of the story. Beneath the fancy office buildings of groundbreaking start-ups, there lies a story of economic inequality, of of students struggling to afford soaring rents in a city that is becoming more and more inaccessible, of long-term residents displaced by gentrification, and of a growing gap between the high salaries of the infamous tech sector and the stagnating wages of essential service workers.

This story goes beyond the impressive and flashy macroeconomic figures, aiming to shed light on a side of Cluj-Napoca that has largely remained untold.

The heart of the economy

The city’s performance is supported by a dynamic private sector, including multinational companies and local entrepreneurs, who contribute to an active business environment. However, this wealth isn’t distributed evenly, and the labor market’s structure reveals a concerning polarization..

This big difference (more than double!) shows how incomes are split. While the IT sector greatly boosts the average salary, most employees in other fields earn much less than this overall average, feeling the pinch of living costs more sharply.

The flattering wages are not a promise in the world of computer science

Flaviu, a former student at the Faculty of Economic Sciences and Business Administration, majoring in information, got his degree during the pandemic and managed to get a job in a field related to economic information, hoping everything would be as promised. However, it was not like that. “I got a job, and I even chose this university because I kept hearing around me how these IT guys make a lot of money. Still, for me, it wasn’t the same.” His story is not very different from the others. Many people fell under the illusion that if you go to an IT university and get a job in the domain, you will have a secure income for a good part of your life. Flaviu also stated, “I was doing so badly that I could barely live from one day to the next. I was begging my parents to put some more money on my card so I could enjoy some pleasures from time to time.” Now, Flaviu is a freelancer, looking for a new job that can bring him the financial stability he has always wanted.

The famous housing and rent problem

Ștefan has been living in the Grigorescu neighbourhood for a little over a year, both of them working a remote job, focused on OSINT. We have had the pleasure of asking Ștefan a few things about his perspective on rents in Cluj-Napoca, and he told us that he had been searching for the perfect rental at a “decent” price for “many months.” However, he mentioned that the rent price is increasing. “Last year, we were paying 600 euros; now the rent has gone up to 650, which makes us think we should move.” This increase in rent prices affects people’s monthly budgets, and Ștefan added, “We understand that the market is evolving, but this evolution is probably too fast for some people.”

Stefan has shared some picture of his 650 EUR per month apartment with us

We also interviewed a landlord who rents out a studio apartment in the Andrei Mureșanu neighborhood. It’s a studio no larger than 10 square meters, in a communist-era building full of studio apartments. She said, “It’s a pretty small studio, but for a single student, I don’t think they need more. Heating is provided by the building, and the price is only 200 euros, which doesn’t seem like much to me.”

The tenant has showed us what the living space of one student in Cluj-Napoca looks like.

In addition to this interview, we contacted a real estate agency, Conect Imobiliare, quite popular in the city, found on the OLX website. We called to better understand how their sales strategies work. We had decent communication from them; they told us that “the market is very active in Cluj-Napoca, with very high demand, with many students requesting apartment rentals.” We also asked about overpriced rentals, so we asked them how they justify the high prices. They replied, “we base our prices on similar properties recently sold and upward trends.” We also asked about the “scams” that often occur in the rental world, where non-existent rentals are advertised or additional fees are requested, but they refused to give a concrete answer.

Interactive map of Cluj-Napoca's prices per square meter

Even the square-per-meter map tells a pretty clear story, and not a happy one – if you’re trying to find a decent place to settle in Cluj. In 2024, prices ranged from 2098 EUR in Mănăștur all the way to 2860 EUR in Mărăști. Today, most recent data shows that the average price per square meter is 3134 EUR,

Considering that a 70 square meter apartment in Cluj-Napoca is priced at 3,134 EUR per square meter, which translates to approximately 15,763.02 RON per square meter (using an exchange rate of 5.03 RON/EUR), the total cost of such an apartment would be around 1,103,411.4 RON. When compared to the average net monthly salary of 6,114 RON in Cluj-Napoca, purchasing this apartment would require approximately 180.48 average monthly wages, or just over 15 years, if the entire income were dedicated to the purchase without accounting for any living expenses such as food, taxes or electricity or potential mortgage interest. This is not good news for young investors, not good news for those who are looking to settle in Cluj-Napoca, this price inaccessibility is increased by the so-called ”real-estate mafia”

The media in Cluj-Napoca and nationally often talks about cases related to this “real estate mafia.” News reports, as seen in the provided images, accuse powerful groups of engaging in “real estate scams worth millions of euros,” such as selling “penthouses instead of apartments,” or facilitating the demolition of historical buildings for new developments. There are also allegations of “real estate mafia within the Cluj-Napoca City Hall” turning a blind eye to illegal demolitions and construction, and even reports of real estate projects being financed through money laundering.

The issue has become a significant political talking point. Counter-candidates, such as Sabin Șarmaș, have openly accused the incumbent mayor, Emil Boc, of “patronizing a ‘small real estate mafia.'” It becomes a strong political tool, suggesting that the housing crisis is a consequence of systemic corruption and unchecked influence peddled by powerful real estate interests and not an economic phenomenon.

To contrast Cluj, prices, take Bucharest, the capital. You might expect it to be more expensive, but surprisingly, according to the same report by imobiliare.ro, the price is €2060 per square meter. Almost a thousand euros less for every square meter. It means you get a lot more space for your money in the capital than you do here.

Then there’s Timișoara. Another major university hub, just like Cluj-Napoca, but when it comes to buying an apartment, you’re looking at €1760. Again, a noticeable gap.

And if you head to Oradea, which is also a really developing and beautiful city, prices for apartments average around €1755 per square meter, this city is often cited as proof that more could be done with Cluj’s budget

So, when you put it all on the map, Cluj-Napoca really stands out. That average of nearly €2,900 per square meter isn’t just a number; it means that owning a home, or even renting one, requires a significantly bigger chunk of change here than in almost any other major Romanian city. It’s why people like Ștefan feel the pinch so acutely and why finding something “decent” at a “decent” price feels like searching for a needle in a haystack. The map just confirms what people here feel in their wallets every single day: Cluj is playing in a different league when it comes to housing costs in Romania.

“I had some business in Oradea today and on the way, I was amazed at how much work was being done in a blizzard on the underpasses. Their goal is to put traffic underground, leaving a green, pedestrian-friendly square on the surface in the central area.” a reddit user has written. “The comparison is relatively simple. Oradea has an administration that is above the city’s level. Cluj has an administration far below the city’s level. The lost time can no longer be recovered. The poor solutions chosen for improving traffic flow (or the lack thereof) will be felt for decades.” said another one in a different thread.