Romania Property Investment News

Nokia and General Motors latest to invest in Romania

Cluj-Napoca in Romania is anticipating a boost in demand for property as Nokia has confirmed it will be investing €60 million into building a new plant in the city. General Motors, America’s largest producer of cars, is also planning a future plant nearby. Nokia’s new plant is expected to create 30,000 new jobs, and the government will pour €33 million into improving the infrastructure.

Another large company is expected to move into the city to support Nokia as a supplier, and is expected to generate employment for 5,000 more people. If General Motors also decides to go ahead with its plans for a plant, an additional 7,000 jobs will be created.

General Motors is planning around €500 million of investment for the production of the Opel make of vehicles in Romania. The final decision is expected to be made within the next two months, following recent visits to several Romanian sites made by the company. However, it is expected that if Romania is chosen as the location for a new plant, it will on the 100-hectare site in Cluj-Napoca.

The city has earned a reputation as a centre for Romania’s IT industry, and there are currently around 100 software companies located there. It also has two well-regarded universities; a fact which, for many companies, indicates a young and eager workforce. Labour is relatively cheap and the local professional population is keen to earn money and attain a western-style standard of life.

The average salary earned by IT workers in Romania is high compared to many other occupations in the county, and the level is growing closer to the equivalent in Western Europe, which means greater purchasing power for the city’s population. The population is also expected to rise as the expanding job market attracts workers from other parts of the country, which will further add to the demand for property.