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April 11, 2021
BUSINESS

CBRE’s “CEE Market Outlook 2016”: Bucharest on the big retail investors’ lists in 2016

The start of 2016 is marked by the optimism of the retail market and by the growth in consumer confidence, CBRE analysts estimate. Given the overcrowding on certain retail markets, the commercial real estate potential is limited in Central and Eastern Europe region. New retail centres are scheduled for inauguration in just three capitals in 2016 – Bucharest, Kiev and Warsaw, with a stock of new surface area of approximately 72,000 square metres in 2016.

Overall, 2015 was an exceptional year for the industrial sector, the retail logistics operators benefitting from the growth in demand, a growth seen in both traditional and online retail. All local markets registered growth in the last 10 years, some sectors growing even by 65 per cent. A restraining of speculative constructions is expected on the developers’ market, markets being dominated by on-demand constructions.

The growth in consumption led to a wave of constructions – retail and logistic storage formulas spurred by the growth in demand from online retail players, CBRE’s “CEE Market Outlook 2016” report shows. The appetite for consumption has already led to the growth in turnover and stabilized the operational revenues of the owners of retail spaces. Apart from traditional destinations such as Prague and Warsaw, Bucharest and Budapest will also be on the investors’ lists.

Demand on office space markets is at record levels, spurred by IT and outsourced services companies, most of which are MNCs. The office space potential of the whole region is at relatively low levels, with two exceptions – Warsaw and Bucharest. Warsaw has over 670,000 square metres of office space announced for delivery in the next two years, representing 15 per cent of the total office surface area. Bucharest has an even higher percentage, namely 21 per cent of the total office surface area available, which could influence the level of the net rent and the occupancy rate.

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