Hungarian Investment Promotion Agency

Competition for FDI is fiercer than ever out there, as evidenced by the fact that in Europe investment fell from a year earlier both in terms of number of projects and capital pledges. Against this economic backdrop, the European Cities and Regions of the Future 2024 ranking benchmarked against each other the most promising investment destinations across the continent.

It assessed as many as 330 European cities divided by population size into five groups — major, large, mid-sized, small and micro cities — as well as 141 European regions divided into three groups — large, mid-sized and small regions.

Everything was ranked by performance across five subcategories: economic potential; business friendliness; connectivity; human capital and lifestyle; and cost effectiveness. 

Although the Hungarian investment promotion efforts translated into doubling the previous all-time high investment volume, hitting the EUR 13 billion mark, only two cities made the fDi Intelligence ranking this time around.

Budapest’s attractiveness was rewarded in the major European cities cost-effectiveness category. The Hungarian capital finished 8th, right ahead Prague and Zagreb.

FDI Strategy in the Limelight

The winners of this year’s FDI Strategy awards for cities were selected by a judging panel composed of leading figures in the world of foreign direct investment (FDI). In total, they reviewed the submissions of investment promotion agencies from 64 European cities of all sizes. It was the only qualitative category in the otherwise data-driven ranking.

Debrecen was recognized among the Small European Cities of the Future 2024. The city located in East Hungary managed to climb from last year’s place 5 to place 4, and remained sandwiched by Derby and Doncaster, two cities in the UK.

Debrecen witnessed a series of investment announcements in 2023 yet again which must have contributed to its success. To name but a few examples, Chinese battery manufacturing giant Eve Power pledged to set up a mega project; IT system integrator Delaware Consulting is about to hire dozens of IT specialists; not to mention Germany-based technology group ZF that invests EUR 62.5 million to provide capacities to manufacture auto parts in the EV segment, partly in Debrecen.

Read the full report with all winners here.