Four Serbian cities have been included in this year’s edition of the “European Cities and Regions of the Future 2025” list, a publication by fDi Intelligence, part of the British Financial Times (FT).
Belgrade ranked high on the list of Large Cities, placing fifth in the category of human capital and lifestyle, and ninth in cost effectiveness.
Novi Sad was ranked sixth among Small European Cities of the Future for business friendliness, while Kragujevac came eighth in the same category for cost effectiveness.
Leskovac was placed fourth in the Micro Cities category for cost effectiveness this year. In last year’s edition, this city in southern Serbia held the top spot in the same category. At the time, the FT noted that Leskovac is known for its textile industry and has well-developed infrastructure in that area, which attracts investors from the sector.
Kragujevac also offers favourable living and business costs, which is appealing to investors seeking cost-effective operations. The city has a rich industrial tradition and developed infrastructure, making it attractive for manufacturing and automotive industry investments. It also benefits from a highly educated workforce thanks to the presence of a university, and is centrally located in Serbia with good transport connections to other parts of the country.
Nenad Gujaničić, chief broker at Momentum Securities, told Biznis.rs that while this ranking is relevant, it represents a “secondary set of factors that investors consider when investing in any country.”
“Initially, macroeconomic factors of a given country are assessed, including its credit rating. Diligent investors will also examine the country’s political and economic stability, the rule of law, and the functionality of institutions. Only then do these micro factors, such as the triage of local destinations, come into play when choosing a specific investment location,” he explains.
When asked how current events and crises in the country affect potential investors’ plans, Gujaničić said it is difficult to assess the immediate impact of recent social developments on future investments, but he believes that if they persist, they will certainly have an effect.
“Firstly, the fact that the protests are widespread and centred on the demand for functioning institutions could prompt some foreign investors to reconsider planned investments. On the other hand, if these protests lead to the fulfilment of basic demands, the current investment shortfall could be quickly offset, as a significant growth potential currently held back by weak institutions and corruption would be unleashed,” Gujaničić concludes.
In the region, the best-ranked cities include Skopje, Banja Luka, Tirana, and Vinkovci…
Among other cities in the region, Sofia and Bucharest appear on the list in the category of major cities, ranked for cost effectiveness and for human capital and lifestyle.
Among mid-sized cities, Skopje holds the top spot for cost effectiveness, while Tirana ranks eighth. Banja Luka comes third in the same category, but in the small cities group.
When it comes to foreign direct investment (FDI) strategy, notable mentions include Debrecen in Hungary (small cities category), as well as Stara Zagora in Bulgaria, the municipality of Kakanj in Bosnia and Herzegovina, and Vinkovci in Croatia (micro cities).
Regions are also ranked on the list. In Serbia’s neighbourhood, Bosnia (BiH) stands out among mid-sized regions, while the Skopje region ranks among small European regions. Top strategies for attracting FDI are recognised in North Macedonia, as well as in the small Croatian regions of Krapina and Međimurje, and in Western Herzegovina in Bosnia and Herzegovina.
Germany dominates among large cities
Among key European cities, London tops the list, followed by Dublin, Warsaw, Paris, and Amsterdam. Places six to ten are held by Munich, Berlin, Madrid, Bucharest, and Stockholm.
On the list of large cities, five are German: Frankfurt and Hamburg near the top, followed by Düsseldorf in fourth place, Cologne in sixth, and Stuttgart in ninth.
Among mid-sized cities, notable entries include Wrocław in Poland, Zurich in Switzerland, and Vilnius in Lithuania. Luxembourg retains first place among small cities, followed by Cork in Ireland and Geneva in Switzerland.
In the micro cities category, Swiss and Irish cities stand out as well – Zug, Limerick, and Galway.
Data centres and semiconductors sustain investment levels
The global situation with greenfield foreign direct investment (FDI) in 2024 was mixed, and Europe was no exception. Despite ongoing criticism, the Old Continent once again attracted the highest number of FDI projects among world regions, as well as the second-largest volume of cross-border capital investment, trailing only the Asia-Pacific region, according to data from fDi Markets.
In a climate where many European countries saw a decline in overall greenfield investment, large-scale capital projects in key sectors contributed to the success of several standout FDI destinations in 2024.
The United Kingdom experienced one of its most successful years since the global financial crisis, thanks to several multi-billion-pound investments in cloud and artificial intelligence infrastructure across the country, according to fDi Markets data.
Italy also had an exceptionally strong year – its best ever in terms of capital investment – driven by significant foreign investments in the semiconductor industry and offshore wind farms. Investments in clean technologies and data centres were also key to Spain’s impressive performance. Data centre investors shattered all previous records by announcing a wave of mega projects (each involving over one billion dollars in planned capital investment) across Europe. In 2024, they announced FDI projects worth more than 69 billion dollars – three times the previous record set in 2023.
(Biznis.rs, 22.04.2025)