CBRE: Bucharest, among the fastest-growing emerging European tech cities


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Bucharest has been ranked as one of the leading destination in Europe for technology-based industries, ranking 8th in CBRE top of the most attractive IT centers in the region and 4th among the cities with the highest increase in the number of employees in the field.

Thus, Bucharest was placed ahead of important cities such as Amsterdam, Milan, Moscow or Istanbul.

During 2010 – 2015, the Romanian capital had a growth rate of 28,21 percent of the employees from these sectors.

“There has been a substantial increase over the last few years in the representation and size of outsourcing and tech companies. Indeed, in the last four years, the number of tech companies has almost tripled, while a majority of other outsourcing companies expanded their presence. In reality though these types of company have had a prominent market presence since as early as 1991, reflecting Bucharest’s status as a favoured destination for outsourcing,” CBRE report reads.

According to the aforementioned document, outsourcing and tech companies represent a major driver of the office market, responsible for half of all pan-Romania office transactions. These companies account for some of the largest deals recorded in the market, some in excess of 20,000 sq m.

Outsourcing companies alongside telecom and software companies, are a priority target for any developer considering office tenant mix, as demonstrated through the mix of active requirements for the city.

In 2015 more than 73,000 sq m of office space was acquired by technology companies, with IT services and technology software the main occupier groups. Two locations are of particular interest for such occupiers – Barbu Vacarescu / Pipera area and West, close to Polytechnic University. Tech companies generally occupy class A premises – a majority of the companies analysed have taken space in such buildings.

The prominence of so many IT companies reflects two main factors: high number of graduates with programming / IT skills, in all major regional cities – over 20,000 people graduate with technical skills each year; the number and value of state incentives given by the Romanian Government to the IT industry. This includes 100 percent exemption on income tax for IT employees and public financing for development of IT innovation parks, plus various other incentives for the creation of new jobs.

CBRE report notes that the USA are the main origin of outsourcing companies in Romania. Around a quarter of companies come from the USA, linked to the fact that over 90 percent of the urban population speaks English.

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