Kaunas has once again been recognized as one of Europe’s most attractive cities for investment. In the prestigious annual European Cities and Regions of the Future 2025 ranking by fDi Intelligence, the city secured 7th place among small cities in the Human Capital and Lifestyle category. Meanwhile, Kaunas region ranked 9th among Europe’s small regions in the Cost Effectiveness category.
The prestigious fDi Intelligence rankings, compiled annually by Financial Times investment experts, evaluate European cities and regions based on economic potential, business environment, connectivity infrastructure, human capital, and cost-effectiveness.
This year’s ranking analyzed data from a total of 521 locations (379 cities and 142 regions) using specialized FDI tools – fDi Benchmark and fDi Markets – and other sources. As noted by those who compiled the ranking, recent years have driven Europe to adapt its investment promotion strategies in response to geopolitical, technological, and business dynamics. These very changes are reflected in the fDi Intelligence 2025 flagship ranking, European Cities and Regions of the Future, which provides a comprehensive assessment of the attractiveness of cities and regions for foreign direct investment (FDI) comparing various European locations – both cities and regions – against similarly sized competitors.
Kaunas’ well-deserved rating highlights the city’s strengths, such as high-quality education, a talented and well-educated workforce, and excellent living conditions. Based on these parameters, Kaunas ranked ahead of similarly sized cities like Leuven in Belgium, Delft in the Netherlands, and Cambridge in the United Kingdom.
“Kaunas” consistent strategy, focused on sustainable growth, innovation, and investment promotion, is already yielding significant results – the city is gaining international recognition and establishing itself among the most attractive investment destinations in Europe. Year after year, high ratings highlight not only the city’s economic potential but also its dedicated efforts to improve the business environment, develop infrastructure, and strengthen the education and talent ecosystem. This success is the result of collective efforts, enabling Kaunas to become a competitive, vibrant, and attractive city for both investors and residents,” says Kaunas Mayor Visvaldas Matijošaitis.
As noted by the Head of Kaunas IN, Tadas Stankevičius, the city is working hard to attract talent from the innovation and technology sector. Kaunas’ modern and well-balanced environment, where historical architecture, contemporary infrastructure, and green spaces coexist, plays a key role in this effort.
Kaunas Region also secured a spot in the TOP 10 of the European small regions category, ranking 9th in the Cost Effectiveness category, which indicates cost-effective business opportunities.
“Macroeconomic indicators such as the number of potential employees, wages, or the tax system are crucial for business decisions and investors certainly pay attention to them. However, our practical experience and conversations with investors who have chosen Kaunas, show that emotional factors also play a role in their final decisions. Every investor ultimately asks themselves: will my employees feel comfortable here? Will I be able to attract talent that could choose any other place in the world? Why should they choose Kaunas?
“It is these rankings that help answer these questions. They objectively reflect the quality of life, opportunities, and the city’s competitiveness on an international scale. Kaunas is not only establishing itself on the European investment map but is also becoming a place that more and more people consider attractive for living, studying, and working in. It is hard to be a prophet in your own land – we can talk about the city’s growth and improving infrastructure, but it is much more impressive when it is confirmed by independent international experts. This assessment is another sign that Kaunas is purposefully moving forward, seeking to become one of the most attractive cities in Europe for both residents and businesses,” T. Stankevičius discusses the trends of recent years.
Kaunas IN
As Andrius Veršinskas, Head of the Business Department of Kaunas IN, notes, Kaunas’ success in this ranking is not accidental: in recent years the city has been consistently investing in improving the business environment and the quality of life.
“Kaunas’ recognition in the European context confirms that the city remains strong in international competition, attracting investment and talent, and most importantly, it remains a city where it is good and comfortable to live,” A. Veršinskas says.
According to him, an innovative business ecosystem, talent supply, and attractive investment conditions ensure that Kaunas remains an important regional center of attraction for both business and highly qualified professionals.
Kaunas IN
Source: Kaunas IN, photo A. Aleksandravičius
