Bucharest: a premier destination for global capability centres
Bucharest is rapidly establishing itself as a top-tier location for multinational corporations aiming to set up Global Capability Centres (GCCs). This ascent is primarily fueled by the city's highly competitive real estate market and significantly lower operational costs, making it an attractive proposition for businesses seeking efficiency and growth in Europe.
Unbeatable office cost efficiency
A recent study conducted by Savills and CoreNet Global highlights Bucharest's exceptional cost-effectiveness. The annual office costs in the city’s burgeoning tech-focused areas average just €252 per square meter. This places Bucharest as the 14th most cost-efficient GCC destination globally and, remarkably, the third most cost-effective office market across all of Europe. For businesses scrutinizing their balance sheets, these figures present a compelling case for choosing Bucharest.
Significant salary savings
Beyond competitive rents, Bucharest offers substantial savings on personnel expenses. For entry-level STEM and customer support roles, which are critical to the successful operation of GCCs, salary costs are approximately 73% lower compared to major global cities like New York and London. This dramatic reduction in labor costs can significantly enhance a company's profitability and operational agility, cementing Bucharest's appeal as a cost-effective European business hub.
Robust market demand and green credentials
The demand for office space in Bucharest is robust, particularly from key sectors. Mădălina Marinescu, Head of Office Agency at Crosspoint Real Estate, Savills International Associate in Romania, notes that IT&C, Business Process Outsourcing (BPO), and Shared Service Centre (SSC) companies collectively account for over 40% of the total office demand. This vibrant ecosystem indicates a strong talent pool and a supportive business environment for tech and service-oriented operations.
Furthermore, Bucharest is also making strides in sustainability. Over 65% of the city’s modern office stock boasts green certifications. This commitment to environmentally friendly buildings is a significant draw for companies prioritizing corporate social responsibility and sustainable operations, aligning their physical presence with their environmental goals.
Why Bucharest should be your next strategic move
Combining highly attractive office leasing rates, significantly lower salary costs, a strong demand from key industries, and a growing portfolio of green-certified office spaces, Bucharest presents an unparalleled opportunity for businesses looking to establish or expand their Global Capability Centres. It offers a strategic blend of cost efficiency, talent availability, and sustainability, positioning it as a dynamic and future-proof choice for your next office location in Europe.
Source: property-forum.eu
