Romania’s modern retail stock exceeded 3 million sqm at the end of June 2015, according to real estate company DTZ. Shopping malls represented the biggest part of the retail stock (60%), followed by retail parks (25%), and commercial galleries (15%).

Two shopping malls were completed in Romania in the first half of the year: the Mega Mall in Bucharest and Coresi Shopping Center in Brasov. They have a total leasable area GLA of 117,000 sqm.

Bucharest has a retail stock of 1 million sqm. The modern retail space density in Romania’s capital is 537 sqm per 1,000 inhabitants.

Retail sales increased by 4.8% year-on-year in the first half, mainly supported by food sales (food, beverages and tobacco).

The main FMCG retailers continued to enlarge their network, Profi being the most active, with 40 supermarkets and proximity stores opened, according to DTZ. On the hypermarket segment, Kaufland (103 units), Auchan (33 units), and Carrefour (28 units) expanded their local network with 1 unit each.

Inditex was the most active fashion retailer in the first half of 2015. The Spanish group opened 10 new units, reaching at the end of June a network of 108 stores. Polish group LPP ranked second with 6 new stores. At the end of the first half, LPP was operating 21 stores in Romania.

A large variety of new brands have entered the local market in the first half, such as Hilfiger Denim, Casa Convenienza, Pupa, Sport Vision, and Marks & Spencer Food.

Prime rental levels have remained stable, reads DTZ’s report. Headline rents achieved for units of 100 sqm in prime shopping centers in Bucharest range between EUR 60 and EUR 70 per sq m per month, while for secondary shopping centers the headline rents for units of the same size are between EUR 25  and EUR 45. Outside Bucharest, the headline rents for units of 100 sqm range on average between EUR 20 and EUR 25 per sqm per month.

Over 100,000 sqm of modern retail spaces are to be completed in the upcoming quarters. South African investment fund NEPI remains the most active retail investor. The company is currently developing a new shopping center in Timisoara, western Romania, and is expanding other shopping centers in its portfolio. Israeli group AFI Europe and Romanian Iulius Group have also announced new developments.

Modern retail represents 1.1% of shops in Romania, but makes half of the total turnover

AFI Europe to develop new shopping center, office project in central Romania

Biggest Romanian mall owner announces EUR 220 mln mega-investment in Timisoara

South-African investment fund NEPI expects over 10% yield on EUR 165 mln investment in Mega Mall

Developer wants to build new commercial center in Timisoara, Romania

Irina Popescu, irina.popescu@romania-insider.com