Bucharest is the fastest growing capital city in the EU, and has registered a faster annual growth rate between 2000 and 2015 than Singapore in its period of fast economic expansion (1965-1980).
In 2015, Bucharest had a GDP that was higher than that of seven EU countries (including Croatia, Slovenia, and Lithuania), and it had a GDP per Capita (at purchasing power standard) that was higher than that of Rome, Madrid, Berlin, Lisbon, and Athens. It is one of the most dynamic cities in the World right now.
Bucharest is the fastest growing capital city in the EU, and has registered a faster annual growth rate between 2000 and 2015 than Singapore in its period of fast economic expansion (1965-1980).
In 2015, Bucharest had a GDP that was higher than that of seven EU countries (including Croatia, Slovenia, and Lithuania), and it had a GDP per Capita (at purchasing power standard) that was higher than that of Rome, Madrid, Berlin, Lisbon, and Athens. It is one of the most dynamic cities in the World right now.
An area of 4 million people
50% of Romanian firm revenues are generated in this area
Around 4 million people live within a one-hour driving distance of Bucharest, and around 50% of Romanian firm revenues are generated in this area. Moreover, around 20,000 students graduate from one of the many universities in the City of Bucharest. This is basically the economic heart of the country.
However, the area has not developed equally. Within Bucharest, of the six sectors that make up the city, Sector 5 is responsible for only 5% of firm revenues, whereas Sector 1 is responsible for 50%.
An area of 4 million people
50% of Romanian firm revenues are generated in this areaAround 4 million people live within a one-hour driving distance of Bucharest, and around 50% of Romanian firm revenues are generated in this area. Moreover, around 20,000 students graduate from one of the many universities in the City of Bucharest. This is basically the economic heart of the country.
However, the area has not developed equally. Within Bucharest, of the six sectors that make up the city, Sector 5 is responsible for only 5% of firm revenues, whereas Sector 1 is responsible for 50%.
THE “ANTIAERIANĂ” AREA
The “Antiaeriană” Area is the largest contiguous piece of land, in public property (it is owned by the Sector 5 City Hall), in Bucharest. It used to be a military area, which now was transferred to the local public authority. The site is only 11 minutes by car (4 km) from the city center, it is close to the Bucharest Metro extension, and it is serviced by tram and bus lines from the north and south.
THE “MĂGURELE” AREA
The “Măgurele” Area is a strategic land reserve, largely in private property, close to the €0.5 billion R&D investment in the Măgurele Extreme Light Infrastructure – Nuclear Physics compound – the largest R&D infrastructure in Romania, and the largest laser infrastructure in the world. The area around Măgurele is an area where strategic investments in further R&D infrastructure and innovative companies are anticipated in the next years.
STRATEGIC CONNECTIVE INFRASTRUCTURE
A number of strategic connective infrastructure projects are being undertaken in and around Sector 5, which will make the area more attractive for investors. The Drumul Taberei Metro extension is close to being finalizes; a new inner ring road is planned for development; the first Bucharest ring road will be extended in the South Area to four lanes; a second ring road connecting the Bucharest-Constanța Highway with the Bucharest-Pitești Highway, is planned for development in the following years;
THE “ANTIAERIANĂ” AREA
The “Antiaeriană” Area is the largest contiguous piece of land, in public property (it is owned by the Sector 5 City Hall), in Bucharest. It used to be a military area, which now was transferred to the local public authority. The site is only 11 minutes by car (4 km) from the city center, it is close to the Bucharest Metro extension, and it is serviced by tram and bus lines from the north and south.
THE “MĂGURELE” AREA
The “Măgurele” Area is a strategic land reserve, largely in private property, close to the €0.5 billion R&D investment in the Măgurele Extreme Light Infrastructure – Nuclear Physics compound – the largest R&D infrastructure in Romania, and the largest laser infrastructure in the world. The area around Măgurele is an area where strategic investments in further R&D infrastructure and innovative companies are anticipated in the next years.
STRATEGIC CONNECTIVE INFRASTRUCTURE
A number of strategic connective infrastructure projects are being undertaken in and around Sector 5, which will make the area more attractive for investors. The Drumul Taberei Metro extension is close to being finalizes; a new inner ring road is planned for development; the first Bucharest ring road will be extended in the South Area to four lanes; a second ring road connecting the Bucharest-Constanța Highway with the Bucharest-Pitești Highway, is planned for development in the following years;
Competitive Salaries
Ensuring affordable employmentIn 2017, the average monthly net salary in Bucharest was 3,116 Romanian Lei (around 680 Euro, or around $770). When compared to average 2017 monthly net salaries in other EU countries, Bucharest still is quite competitive from this point of view.
Average monthly net salaries in EU countries, in 2017
Source: EuroStat
Competitive Salaries
Ensuring affordable employmentIn 2017, the average monthly net salary in Bucharest was 3,116 Romanian Lei (around 680 Euro, or around $770). When compared to average 2017 monthly net salaries in other EU countries, Bucharest still is quite competitive from this point of view.
Average monthly net salaries in EU countries, in 2017
Source: EuroStat
State Aid
Local authorities can also support private investment project, that go above a certain ceiling of job creation and investment values, within the framework of the local de minimis aid schemes. The Municipality of Bucharest applies such a de minimis scheme (through General Council Decision 7021/2017), of up to EUR 200,000.
Minimum EUR 10 mil. investment
stimulating investments that have a major impact on the economy
- Construction of new buildings
- Renting costs for existing buildings
- CAPEX aimed at technical installations and tools
- Acquisition of intellectual property
Minimum 10 new jobs/ per location
support investments that promote regional development by creating jobs
- Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment
- Salary costs are comprised of gross average annual salary plus benefits
- The new jobs are to be kept for a term of at least 5 years for large enterprises
- The new jobs are to be kept for a term of at least 3 years for the small and medium enterprises
Details on state aid schemes can be obtained here: http://investromania.gov.ro/web/state-aid/
State Aid
Local authorities can also support private investment project, that go above a certain ceiling of job creation and investment values, within the framework of the local de minimis aid schemes. The Municipality of Bucharest applies such a de minimis scheme (through General Council Decision 7021/2017), of up to EUR 200,000.
Minimum EUR 10 mil. investment
stimulating investments that have a major impact on the economy
- Construction of new buildings
- Renting costs for existing buildings
- CAPEX aimed at technical installations and tools
- Acquisition of intellectual property
Minimum 10 new jobs/ per location
support investments that promote regional development by creating jobs
- Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment
- Salary costs are comprised of gross average annual salary plus benefits
- The new jobs are to be kept for a term of at least 5 years for large enterprises
- The new jobs are to be kept for a term of at least 3 years for the small and medium enterprises
Details on state aid schemes can be obtained here: http://investromania.gov.ro/web/state-aid/