The new supply of retail projects could exceed the threshold of 200,000 sqm in Romania in 2024, considering that 140,000 sqm of shopping centers and retail parks were delivered nationwide in Q1-Q3, according to real estate consultancy company Cushman & Wakefield Echinox. By comparison, in 2023, developers completed 213,000 sqm of new retail spaces, a record of the last seven years.

Two new projects (Annabella Retail Park and Sinaia Plaza) and extensions to Ploiesti Shopping City and Prahova Value Centre were completed in the third quarter (Q3), totaling around 22,000 sqm. 

As a result, Romania’s modern retail stock has grown to approximately 4.59 million square meters, with shopping centers making up 55% of the total, while retail parks and commercial galleries comprise the remaining 45%. Despite this growth, Romania’s retail density remains one of the lowest in Central and Eastern Europe, at 241 square meters per 1,000 inhabitants, suggesting continued development potential.

The short-to-long-term pipeline exceeds 800,000 sqm GLA, consisting of projects under construction or in different permitting stages, which are due to be completed by the end of the decade and which include several super-regional shopping centers of more than 100,000 sqm each. 

Dana Radoveneanu, Head of Retail Agency Cushman & Wakefield Echinox, commented: “The retail market is going through a very positive context, having successfully passed the more difficult periods of the last few years. The YTD 2024 impressive retail sales growth has remained well above the EU average, thus encouraging the development of new projects but also the expansion of retail networks, whether we are referring to hypermarkets or supermarkets, fashion, DYI, or other product segments. Interest in new retail schemes remains high, an important indicator in this respect being the occupancy rate of the projects delivered in recent years, which is over 90%.”

The prime shopping center and high street rents in Bucharest recorded slight surges, up to EUR 90 and EUR 60/sqm/month, respectively (for units ranging between 100 - 200 sqm at the ground floor of dominant shopping centers or on Calea Victoriei), while the corresponding figures in secondary cities, such as Cluj-Napoca, Timisoara, Iasi, and Constanta remained constant, ranging between EUR 50 - 65/sqm/month.

irina.marica@romania-insider.com

(Photo source: Eugene Suslo/Dreamstime.com)