The research focuses on the analysis of characteristics of the German federal states that are significant in attracting Foreign Direct Investment in Greenfield projects. Multinational enterprise’s goal is to achieve the highest gain when investing in certain regions and consequently certain attributes play a crucial role in encouraging or deterring investments in a certain location. Using the Conditional logit model I have tried to asses which state characteristics are more relevant for policymakers when trying to attract more foreign investors in one of the sixteen states part of the German Federal Republic.