10 Reasons Why You Should Invest in Romania’s Cities

1. Access to Markets

Romanian cities have access to one of the largest markets in the World. As a point of comparison, Italy, one of Romania’s key trade partners, consumes more every year than all of India.

    Population Consumption
(in billion) % of World Population (in trillion) % of World Consumption Consumption per Capita
World 7.26 100% $55.04 100% $7,581
United States 0.32 4.4% $13.77 25.0% $42,835
European Union 0.51 7.0% $13.70 24.9% $26,946
Japan 0.13 1.7% $4.47 8.1% $35,242
China 1.37 18.9% $4.34 7.9% $3,169
India 1.31 18.1% $1.49 2.7% $1,134
The Rest of the World 3.62 49.9% $17.27 31.4% $4,768

Source: World Bank

2. Fast Economic Growth

Romanian cities are the fastest growing in the EU.

GDP per Capita (PPP) Growth between 2000 and 2013

3. Rapidly Improving Connectivity

Romanian cities have one of the fastest improving connectivity rates in the World. Airport traffic has grown dramatically for most major airports in Romania, and almost every airport in Romania has benefited from investments and improvements in recent years. The highway network is growing too.

Passenger numbers for Romania’s main airports

  2005 2016 Compound Annual Growth Rate
Bucharest 2,972,799 10,981,652 12.6%
Cluj-Napoca 202,556 1,880,319 22.5%
Timișoara 611,705 1,160,482 6.0%
Iași 41,960 881,157 31.9%
Bacău 36,261 414,676 24.8%
Târgu Mureș 12,408 287,412 33.1%
Sibiu 45,494 366,065 20.9%
Craiova 5,133 222,320 40.9%
Source: Individual airport webpages

4. Success Story

Companies have been thriving in Romanian cities. Firm revenues have been growing at a rapid pace in almost every major city in Romania.

  Firm Revenues in 2011 Firm Revenues in 2015 CAGR 2011-2015
TARGU JIU € 525,015,488 € 1,199,270,494 22.94%
CRAIOVA € 2,216,442,353 € 3,473,076,283 11.88%
SUCEAVA € 561,613,684 € 863,541,352 11.36%
IASI € 1,963,443,453 € 2,928,990,623 10.52%
PITESTI € 1,951,752,262 € 2,816,041,305 9.60%
BOTOSANI € 630,018,495 € 901,948,278 9.38%
CLUJ-NAPOCA € 5,052,009,718 € 7,226,366,735 9.36%
BAIA MARE € 1,130,453,911 € 1,612,595,406 9.29%
PIATRA NEAMT € 529,046,618 € 747,778,404 9.04%
BRAILA € 880,645,993 € 1,241,459,454 8.96%
BISTRITA € 940,279,706 € 1,321,482,847 8.88%
SATU MARE € 1,088,628,991 € 1,500,874,788 8.36%
ARAD € 2,697,239,293 € 3,695,279,590 8.19%
CONSTANTA € 3,775,910,070 € 5,135,128,916 7.99%
ORADEA € 2,315,338,017 € 3,090,986,809 7.49%
BACAU € 1,909,987,534 € 2,535,930,553 7.34%
TARGU MURES € 2,847,637,941 € 3,762,246,910 7.21%
TIMISOARA € 4,977,210,992 € 6,533,602,508 7.04%
GIURGIU € 270,789,743 € 352,027,698 6.78%
ALBA IULIA € 507,554,119 € 659,708,617 6.77%
FOCSANI € 632,485,386 € 821,677,506 6.76%
ZALAU € 657,119,097 € 837,198,675 6.24%
SFANTU GHEORGHE € 463,487,574 € 590,474,512 6.24%
BRASOV € 4,234,621,497 € 5,325,889,563 5.90%
BUZAU € 1,791,857,270 € 2,236,464,652 5.70%
SLOBOZIA € 607,491,432 € 739,101,953 5.02%
TULCEA € 802,354,687 € 972,808,566 4.93%
VASLUI € 388,622,827 € 470,741,288 4.91%
RAMNICU VALCEA € 1,042,806,670 € 1,238,764,774 4.40%
MIERCUREA CIUC € 342,551,214 € 404,755,144 4.26%
TARGOVISTE € 678,066,422 € 793,448,398 4.01%
BUCURESTI € 78,124,551,508 € 90,318,021,918 3.69%
GALATI € 3,347,867,653 € 3,781,645,941 3.09%
DROBETA TURNU SEVERIN € 314,760,251 € 349,745,433 2.67%
ALEXANDRIA € 490,108,430 € 542,335,405 2.56%
SLATINA € 1,768,669,573 € 1,937,580,387 2.31%
SIBIU € 2,607,330,864 € 2,607,751,180 0.00%
CALARASI € 744,000,803 € 741,859,298 -0.07%
RESITA € 465,388,451 € 433,299,075 -1.77%
PLOIESTI € 4,379,689,038 € 4,070,314,763 -1.81%
DEVA € 712,089,835 € 622,028,511 -3.32%

Source: ListăFirme

5. Active Labor Force

Romanian cities have become increasingly attractive to migrants and commuters. Almost every city has a functional urban area (i.e., active commuter shed) that goes well beyond its administrative boundary, and the labor force is mobilized from a large territory.

6. Competitive Salaries

Average salaries in Romanian cities are competitive.

County 2008 2009 2010 2011 2012 2013 2014 2015 2016
Bucuresti € 681 € 591 € 646 € 685 € 678 € 712 € 751 € 829 € 882
Timis € 480 € 433 € 457 € 480 € 484 € 526 € 562 € 632 € 756
Ilfov € 577 € 550 € 564 € 606 € 615 € 610 € 647 € 705 € 751
Cluj € 481 € 444 € 451 € 475 € 483 € 518 € 570 € 622 € 746
Sibiu € 450 € 417 € 436 € 452 € 441 € 480 € 502 € 565 € 682
ROMANIA € 478 € 435 € 452 € 467 € 463 € 489 € 524 € 575 € 662
Brasov € 445 € 422 € 422 € 448 € 452 € 463 € 497 € 553 € 652
Gorj € 552 € 478 € 495 € 499 € 491 € 502 € 545 € 555 € 618
Iasi € 456 € 420 € 429 € 434 € 422 € 463 € 510 € 556 € 617
Arad € 413 € 387 € 401 € 414 € 411 € 436 € 462 € 518 € 609
Prahova € 481 € 447 € 451 € 454 € 466 € 481 € 524 € 569 € 606
Constanta € 471 € 447 € 433 € 456 € 439 € 463 € 488 € 541 € 603
Alba € 409 € 365 € 402 € 397 € 392 € 411 € 445 € 493 € 599
Galati € 444 € 400 € 410 € 425 € 414 € 445 € 488 € 509 € 597
Arges € 465 € 438 € 467 € 477 € 476 € 513 € 551 € 604 € 590
Dolj € 446 € 419 € 413 € 434 € 424 € 457 € 479 € 520 € 580
Mures € 409 € 383 € 399 € 404 € 405 € 430 € 464 € 506 € 572
Bacau € 458 € 423 € 412 € 406 € 395 € 420 € 450 € 491 € 569
Olt € 437 € 404 € 394 € 394 € 406 € 430 € 484 € 505 € 563
Calarasi € 382 € 356 € 344 € 361 € 361 € 385 € 419 € 446 € 546
Tulcea € 405 € 377 € 406 € 413 € 390 € 429 € 454 € 492 € 536
Mehedinti € 460 € 415 € 426 € 419 € 397 € 424 € 458 € 478 € 534
Dambovita € 427 € 393 € 409 € 405 € 407 € 439 € 459 € 488 € 533
Buzau € 402 € 371 € 372 € 379 € 379 € 403 € 410 € 461 € 530
Giurgiu € 423 € 405 € 407 € 400 € 382 € 414 € 438 € 482 € 526
Caras-Severin € 379 € 364 € 377 € 372 € 372 € 380 € 409 € 449 € 525
Hunedoara € 420 € 391 € 390 € 385 € 396 € 406 € 431 € 473 € 523
Maramures € 369 € 332 € 330 € 334 € 352 € 360 € 397 € 426 € 517
Bihor € 367 € 329 € 347 € 352 € 346 € 360 € 402 € 434 € 516
Salaj € 386 € 363 € 357 € 364 € 353 € 375 € 408 € 459 € 512
Ialomita € 392 € 360 € 366 € 372 € 371 € 384 € 421 € 448 € 508
Satu Mare € 373 € 334 € 342 € 358 € 353 € 395 € 413 € 453 € 506
Valcea € 421 € 374 € 385 € 401 € 395 € 403 € 413 € 445 € 504
Braila € 406 € 373 € 364 € 374 € 360 € 391 € 416 € 453 € 500
Vaslui € 380 € 351 € 343 € 334 € 342 € 361 € 400 € 422 € 499
Bistrita-Nasaud € 392 € 352 € 350 € 356 € 352 € 371 € 392 € 459 € 496
Botosani € 377 € 354 € 351 € 347 € 345 € 377 € 416 € 456 € 494
Covasna € 350 € 325 € 337 € 346 € 339 € 363 € 389 € 433 € 488
Neamt € 379 € 345 € 353 € 359 € 345 € 373 € 394 € 425 € 484
Vrancea € 384 € 346 € 349 € 346 € 347 € 371 € 399 € 444 € 481
Teleorman € 399 € 358 € 366 € 370 € 361 € 387 € 412 € 442 € 478
Harghita € 359 € 344 € 328 € 338 € 327 € 349 € 385 € 426 € 477
Suceava € 394 € 354 € 358 € 365 € 350 € 387 € 418 € 459 € 470

Source: Romanian National Institute of Statistics

7. Awesome Life

Romanian cities offer good quality of life and one of the lowest costs of living in the World. If you make 4500 pounds a month in London, you would need to make 1365 pounds in Romania to maintain the same standard of life.

8. Low Taxes

Romania has one of the lowest tax rates on the continent: the standard corporate tax rate is 16%, about half the tax you would pay in France, Germany or Italy. Fiscal incentives include tax exemption for the reinvested profit.

9. Substantial Public Investments

Romanian cities continuously invest in improving infrastructure and conditions for investors and people, and local administrations are increasingly responsive to the needs of investors.

Capital Expenditures between 2007 and 2015

EU Funds Own Budget Expenditures Total Capital Expenditures
  Core City FUA   Core City FUA   Core City FUA
București € 93,757,980 € 262,295,385 € 3,093,395,693 € 3,890,444,401 € 3,187,153,672 € 4,152,739,786
Brașov € 68,662,721 € 102,547,686 € 161,140,723 € 371,095,697 € 229,803,444 € 473,643,383
Timișoara € 104,598,212 € 140,555,747 € 116,984,885 € 311,150,318 € 221,583,097 € 451,706,064
Constanța € 24,540,445 € 100,860,854 € 123,687,222 € 329,418,233 € 148,227,667 € 430,279,087
Cluj-Napoca € 103,639,043 € 161,054,582 € 122,474,038 € 266,354,014 € 226,113,081 € 427,408,595
Oradea € 139,499,081 € 175,476,436 € 85,882,351 € 193,652,495 € 225,381,432 € 369,128,931
Craiova € 130,975,305 € 146,436,114 € 123,352,629 € 217,086,275 € 254,327,934 € 363,522,389
Ploiești € 56,141,819 € 71,669,899 € 87,364,096 € 291,082,565 € 143,505,916 € 362,752,463
Pitești € 39,695,798 € 81,152,356 € 84,735,458 € 278,858,323 € 124,431,256 € 360,010,680
Iași € 152,791,778 € 181,519,695 € 115,889,503 € 178,326,477 € 268,681,281 € 359,846,172
Sibiu € 15,309,095 € 41,423,869 € 125,902,440 € 258,938,467 € 141,211,535 € 300,362,337
Arad € 40,865,359 € 63,738,590 € 117,916,614 € 217,607,470 € 158,781,973 € 281,346,059
Galați € 34,838,308 € 58,010,583 € 157,941,530 € 220,010,009 € 192,779,838 € 278,020,592
Râmnicu Vâlcea € 24,212,883 € 66,024,345 € 54,909,318 € 186,161,389 € 79,122,201 € 252,185,734
Bacău € 79,053,034 € 100,219,161 € 96,747,847 € 147,945,195 € 175,800,881 € 248,164,357
Târgu Mureș € 48,588,795 € 70,724,705 € 60,863,528 € 133,366,167 € 109,452,323 € 204,090,871
Târgoviște € 57,100,409 € 87,313,395 € 32,866,447 € 97,622,407 € 89,966,856 € 184,935,802
Piatra Neamț € 32,766,077 € 43,241,704 € 88,337,721 € 126,549,780 € 121,103,798 € 169,791,484
Deva € 22,645,403 € 52,179,499 € 53,879,285 € 114,623,429 € 76,524,688 € 166,802,927
Alba Iulia € 51,752,361 € 70,280,123 € 24,323,423 € 93,128,807 € 76,075,784 € 163,408,930
Baia Mare € 11,011,747 € 35,905,432 € 58,048,595 € 123,091,159 € 69,060,342 € 158,996,591
Brăila € 66,520,269 € 67,446,149 € 59,941,264 € 77,046,994 € 126,461,532 € 144,493,144
Slatina € 28,196,508 € 44,078,042 € 61,551,826 € 90,891,106 € 89,748,334 € 134,969,148
Bistrița € 33,991,820 € 64,534,248 € 31,756,833 € 69,911,748 € 65,748,653 € 134,445,996
Suceava € 21,449,080 € 34,406,644 € 48,952,665 € 91,391,720 € 70,401,745 € 125,798,363
Satu Mare € 19,703,299 € 45,705,215 € 29,220,620 € 79,948,448 € 48,923,919 € 125,653,663
Focșani € 34,824,132 € 43,767,507 € 31,687,831 € 80,233,342 € 66,511,963 € 124,000,849
Miercurea-Ciuc € 20,064,952 € 37,227,779 € 43,951,181 € 83,720,467 € 64,016,132 € 120,948,246
Buzău € 10,598,420 € 15,966,861 € 23,803,670 € 98,975,646 € 34,402,089 € 114,942,507
Drobeta Turnu Severin € 20,456,438 € 29,179,847 € 61,422,379 € 81,734,871 € 81,878,817 € 110,914,718
Sfântu Gheorghe € 19,560,503 € 28,227,454 € 43,221,555 € 69,704,491 € 62,782,058 € 97,931,944
Botoșani € 20,989,209 € 25,729,559 € 59,618,570 € 70,992,411 € 80,607,779 € 96,721,970
Târgu Jiu € 11,867,370 € 27,090,134 € 32,656,431 € 68,357,454 € 44,523,802 € 95,447,588
Tulcea € 20,344,174 € 26,778,570 € 40,044,949 € 55,387,644 € 60,389,123 € 82,166,214
Slobozia € 7,146,830 € 14,452,216 € 41,105,874 € 63,631,453 € 48,252,705 € 78,083,669
Zalău € 12,304,703 € 33,423,535 € 13,185,308 € 44,538,397 € 25,490,012 € 77,961,932
Vaslui € 21,995,069 € 27,422,930 € 29,887,653 € 49,502,304 € 51,882,722 € 76,925,234
Călărași € 2,551,401 € 16,795,288 € 35,391,245 € 53,779,100 € 37,942,646 € 70,574,388
Giurgiu € 3,342,486 € 7,289,606 € 49,918,873 € 57,851,233 € 53,261,359 € 65,140,839
Reșița € 3,164,535 € 10,066,692 € 36,303,967 € 42,996,462 € 39,468,502 € 53,063,154
Alexandria € 6,446,983 € 6,528,086 € 23,862,028 € 36,341,226 € 30,309,011 € 42,869,312

Data: Ministry of Regional Development, Public Administration, and European Funds

10. Growing Urban Areas

With improvements in infrastructure, cities are becoming increasingly inter-connected, forming large urban networks and systems.

Source: Cities in ECA: A shifting story of urban growth and decline, Urban ECA team, World Bank, 2016-2017