Hi
Below is a copy from another post I put on a different thread about where next in Romania Its a bit long, but it explains what I think is good about Mures.
In essence I principally like three things:
Firstly, it is well run. Having watched them improve the infrastructure over the last 4 years in particular (2 years living there, 2 years going back since), I can tell you that the difference in work between Bucharest and Mures is like day and night. My wife used to live in Bucharest and I would visit her every week whilst we were dating. In Mures when they dig up the main road or pavement to repair it, you can be sure that there will be no new pavement for 8-12 weeks. The rubble is left in great piles in the street. The work is badly done. In Mures it is pulled up and relaid in 2 weeks.
In two years of living there and running a renovation business I never once paid a bribe. The local government runs well and the town hall is efficient by romanian standards. When they dig up the road, they lay the new gas pipes at the same time as re-surfacing, rather than re-surfacing and then digging it up again 2 months later for the pipes. Things like this matter in my opinion.
Secondly, it has strong links with Hungary, I rent all my apartments to Hungarian business men who have branch offices in Mures. The ethnic Hungarians of Transilvania have a different mentality. They are generally more business like and tend to be more modern than ethnic Romanians. I am not for one second suggesting that the Romanians are in any way inferior or that you cannot find excellent Romanian workers, I'm just telling you my impressions. It is note worthy that everyone I employed and sub-contracted was a Hungarian, not out of prejudice, but just because they gave the best impression when meeting/interviewing them.
I don't know how well you know Romania or its history, but there are effectively two Romanias. Inside the Carpathian Mountians, (ie transilvania to the Hungarian border) was part of Hungary for almost all of history, consequently they tend to have a more Central European outlook. From Brasov south (and I include Brasov in this catagory), it was always under a more Turkish and Balkan influence, and therefore has amuch more Balkan feel and outlook.
Why is this important? Because they attitude to everything is different. The Transilvanians are known in Romania for being the best workers, they have stronger links to Europe, and frankly, in my experience are less corrupt, more honest, and more friendly. From the point of view of the investor this means better run cities with a more internationalist outlook, and less corruption.
Lastly, I think Mures is pleasant place to live. I spent 2 years there and know many other cities in Romania very well. Mures is the most live-able place in Transilvania (except maybe Sibiu), and I think that is going to count for more and more as living standards rise and Romanians re-locate internally for more than just employment. There are jobs and a large university, and a good feel to the place. I've invested in Romania long term (another 5-10 years) and see these as important long term issues.
In terms of FDI, it hasn't had the pull of Brasov or Cluj, but I am sure it will come, and there are already many modern smaller factories springing up around town. There are all the big retail gaints (Prakticer, Kaufland, Metro, etc), and big housing projects being developed around the city and nearby. I also think it will profit well from EU farm subsidies as there is excellent agricultural land in Mures county.
Price wise, three years ago I was paying Euro 35-45K for unrenovated apartments on the main square of town, and now I would estimate that renovated apartments in the same location would be 65-75K. Bear in mind this is renovated to a high standard even to western eyes (new everything, wiring, plumbing central heating, floors, doors, windows, etc etc). Unrenovated maybe 55-60K now, not sure as I haven't bought in the last two years!
Last point is that I know that the official figures are that its population is 150,000 but I think that's underestimated and would say its closer to 200,000.
If you haven't purchased in Romania, just be aware if the north south divide. I think in the short term places in the South will get FDI, but longer term my money is for Transilvania all the way, not to mention how much easier they are to deal with and rub along with!
Read the copy and paste below for more info (if you've not had enough already!).
Regards
Ben
Well it is not the gold rush country of Brasov and Bucharest, that's true, but it does have the following:
1.Relatively undervalued city centre property. The difference in price between city centre property and near-city-centre is still relatively small and doesn’t reflect the difference in current, and more importantly, future value.
2.Undifferentiated housing stock. The large suburbs of relatively uniform apartments that surround Tirgu Mures are likely to suffer from a problem of lower prices due to the concurrent availability of almost identical apartments at any given time. The small stock of city centre apartments are therefore likely to benefit from this by the very fact that they are differentiated by location, diversity of construction, and small block size relative to those of the suburbs.
3.Stability of the market. The residential property market in Tirgu Mures is likely show more stability than those of some other Romanian cities, even if potential growth may be slightly lower. Lack of speculative pricing (particularly on EU entry such as in Bucharest or Brasov), and foreign capital (which can be withdrawn easily) means that the market is largely home grown, and as such reflects a truer value of the property than in some other major cities. It is likely to see an increase in speculative investment, but this is likely to be from Romanians and for resale to the Romanian market. One of the key factors in choosing Tirgu Mures as a location was to reduce the investment risk, and to try to avoid the more volatile and unpredictable end of the market. This has been borne out by recent prices drops in Bucharest, whilst Mures is still growing slightly.
4.Nascent nature of the market. The property market in Tirgu Mures lacks many of the aspects that one might associate with a mature property market, and as such offers the opportunity to “get it at the ground floor”. The still comparitively small buy-to-let market, and the lack of renovated apartments on the market both suggest that the population has yet to wake up to the full potential of the market.
5.A good supply of suitable apartments. There remains a reasonably large stock of un-renovated, city centre apartments, that are steadily coming to the market. At the moment the market seems to be favouring the buyer, as good supply keeps prices down.
As far as the city itself goes, read on....
Tirgu Mures – City Profile
Background:
A city of approximately 150,000 people (approx 9th largest in Romania) with a rich history, an attractive main square and a quiet prosperity to it; Tirgu Mures is a city that has successfully emerged from the troubled times of the 1990’s to become the Romanian equivalent of “Middle England”. There are none of the glaring divides in wealth, or the frontier feel that still permeate Bucharest and Brasov, and it suffers from few of the social ills of the larger Romanian cities. Whilst it is fair to say that it is not the powerhouse of the Romanian economy, it is however the capital of Mures county which covers some of the most prosperous areas of Transilvania, itself the most prosperous region of Romania overall. If one were looking for a comparable city in the UK, Bristol or York would be suitable examples.
Ethnic make-up:
Tirgu Mures also has an ethnic mix of roughly 50/50 Romanians and ethnic Hungarians, which have fostered strong and rapidly growing economic and social links with Hungary. The ethnic Hungarians tend to give a more central European and professional outlook to the cities where they are a significant minority, and also naturally have strong links with Hungary itself.
During the early 1990s ethnic tensions between the ethnic Hungarians and Romanians boiled over into violence that was fuelled by rabble rousing politicians, poverty and fear of the changes sweeping the country in the post-communist world. History and national identity have always been contentious issues in Transilvania, but it is inconceivable that a return to violence could be seen in Tirgu Mures, or anywhere else in Transilvania. Staggering economic advances and rises in living standards since the dark days of ‘89/’90 (the monthly food ration in 1989 was 1 kilo or flour, 1 of sugar and 6 eggs per person per month) have diffused tensions, and Romanians and Hungarians mix harmoniously at work, in government and socially.
Tourism and Transport links:
During summer months the bulk of tourists in Tirgu Mures are from Hungary, and there are now two airlines that fly direct from the city to Budapest several times a week(Malev and Wizz Air). The airport was expanded a few years ago and now has the most modern runway and night landing facilities in Romania.
The Transylvanian Highway will be completed in 2013 and will connect Mures to Europe and southern Romania. The city is also on the main Transilvanian extant transport route, the E60, which links Bucharest with Budapest.
Local Government:
One of the most noticeable features of the city is how well run it is.
In a country where corruption is still an endemic problem, (especially in areas such as awarding public works contracts) it is noteworthy to see how clean the city is and how efficiently road and pavement repairs are carried out.
The standards of city management and the council’s evident interest in the “live-abilty” of the city are noticeably higher than many of the other major cities in Romania, as well as having a relatively client focused bureaucracy.
The city has a nationally renowned emergency rescue service, heart hospital and medical University, and has recently guaranteed loans that will complete the financing of a 28million Euro overhaul of its drinking and waste water treatment facilities.
Local Economy:
Tirgu Mures has a well diversified economy with factories producing everything from gloves to fertiliser, and its status as the county seat and largest city, has given it a strong commercial base in areas as diverse as the services industries(including medical), food wholesale, industrial and farm machinery supply, and IT.
Education:
The city also has a long history of education, and several important figures in science and culture lived and worked in the city through the ages, such as Farkas and János Bolyai (famous father and son mathematicians), Petru Maior, an outstanding personality of Enlightenment in Central Europe, and count Sámuel Teleki who amassed a library of over 40,000 books and rare manuscripts during the early 1800’s. Tirgu Mures boasts three universities, including a well renowned medical and dental university , and a Hungarian University, in all the student population tops 10,000.
Summary of the main advantages of Tirgu Mures:
•A well run city and county council that actively promote themselves to business and tourism, and are investing in long term infrastructure improvements.
•A medium sized city with a good business and education base and a high quality of life that has the capacity to retain its educated and professional youth, as well as attract new businesses and families.
•Strong transport links by road and air auger well for further development of business, industry, and particularly tourism.
•Attractive city centre with a good supply of un-renovated apartments in what is currently a buyers market.
•An expanding young professional class that will provide a strong re-sale market in coming years.
•Good house price growth in the last 3 years has caused a surge in interest home ownership, particularly among young professionals who now have access to affordable mortgages
Targu Mures is a prime example of a Romanian city quietly getting on with improving itself and building prosperity. It is probably the least corrupt and best run place I know in Romania, and it is staggering what a difference there is between the clean, calm Central Euopean feel of Mures, and the chaotic, Balkan feel of Brasov and Bucharest.
THE hotspot of Romania? Probably not, but a good solid place to invest, which has already shown strong returns for me.
Martin Grainger (PS)
ES