Romania rules the roost

Romania has enhanced its reputation as an attractive property investment destination...

According to the Ernst & Young Southeast Europe Attractiveness Survey 2008, Romania continues to be the most attractive destination for investment in Southeast Europe.

The country attracts strong investor interest in high value-added activities and ranks first on half of location criteria surveyed.

The second edition of the survey also reveals a strong improvement in investors’ perception over the last three years on the SEE region and a high level of confidence in the future driven by EU membership.

Changing perceptions

Fifty-two percent (52%) of the respondents consider Romania as an attractive country to do business in, compared with 50% for Turkey, 40% for Bulgaria, 31% for Greece, 28% for Croatia, 19% for Serbia, 10% for Bosnia & Herzegovina and 9% for Cyprus.

Almost two-thirds of the respondents (67%) said their perceptions of Southeast Europe investment environment has improved over the last three years, but we see a strong perception gap depending on investor’s experience in SEE - the resident investors having a better perception than potential investors.

Labour shortages ‘a threat’

Camelia Horlaci, Country Managing Partner at Ernst & Young Romania: “Southeast Europe emerging markets continue to attract FDI because they offer investors attractive labor costs, flexibility of labor laws and an encouraging productivity increase.

“Forty-three percent (43%) of the respondents have expressed their intention to establish or develop activities in SEE and 52% of them have indicated Romania as their first choice. Still, cost and labor shortages are major threats for SEE countries’ attractiveness, including Romania”.

The present edition of the survey has been carried out in January 2008 on eight countries of the Southeast Europe region including: Romania, Bulgaria, Greece, Turkey, Croatia, Bosnia and Herzegovina, Cyprus, and Serbia.