Romania is increasingly attracting international investors due to its competitive technological capabilities and a conducive ecosystem for AI development, finds a new CBRE report.
AI development remains the primary driver of funding in the tech sector, despite a general market slowdown observed since 2023.
While the US, India, and the UK lead in AI talent concentration,CEE markets, including Romania, are gaining significant attention. This is attributed to a competitive workforce and a favourable business environment.
"Global mobility and hybrid work have broadened access to tech talent, offering cities in Central and Eastern Europe, such as those in Romania, the opportunity to become competitive technological hubs. Investments in deep tech innovation will consolidate this trend," stated Mike Gedye, Head of Tech, Media & Telecoms for Europe at CBRE.
Moreover, major Romanian tech hubs in Bucharest, Cluj-Napoca, Iași, and Timișoara are becoming increasingly relevant, benefiting from a STEM-educated population, reduced operational costs, and an attractive quality of life for digital professionals.
The report notes an accelerated demand for tech talent in Poland and Germany, with emerging markets like Belgrade, Katowice, Leipzig, and Lille also gaining traction. Although software engineer salaries in Budapest and Bucharest remain among the lowest in Europe, this factor enhances Romania's appeal to investors seeking cost efficiency without compromising the quality of human capital.
The pandemic significantly accelerated digital transformation, and after a period of restructuring, 2024 marked a rebound in tech hiring, largely driven by AI developments.
