27.7 C
Bucharest
August 8, 2022
EDITORIALOP-EDOPINIONPOINTS OF VIEWReal Estate

Cushman & Wakefield Echinox: Developers continue their investments, as over 500,000 sq m of retail spaces are planned or under construction in Romania

 Limited pipeline in Bucharest

Real estate developers continue to expand their portfolios of retail projects in Romania, ​​over 500,000 sq. m of new spaces being announced for the next 4 years, with 10 of the pipeline projects each having more than 10,000 sq. m, according to the Bucharest Retail Market and the Romania Retail Regional Cities reports, produced by Cushman & Wakefield Echinox.

At regional level, projects totaling 270,000 sq. m are under construction and in various planning phases in the Central West area, projects which are due to be added to the existing stock of 1.4 million sq. m. This area will therefore remain the most developed in terms of modern retail spaces.

Moreover, new spaces of 137,000 sq. m are planned for development in the East area, an area which had a total stock of 610,000 sq. m at the end of March 2022, while the corresponding pipeline for the South area (which has a stock of 842,000 sq. m), is of 156,000 sq. m.

Currently, Resita, with a population of 73,000 inhabitants, is the largest city in the country without a modern retail project. However, Nhood has announced plans to develop a 35,000 sq. m shopping center in the coming years as part of an urban regeneration project. Giurgiu and Alexandria are two other important cities without any modern retail project. However, Giurgiu will be added this year on the modern retail map, through a retail park which Mitiska REIM is developing in the city, while no such projects have been yet announced for Alexandria.

Three cities in the country have a density of retail spaces of over 1,000 sq. m / 1,000 inhabitants, namely Suceava (1,167 sq. m / 1,000 inhabitants), Oradea (1,047 sq. m / 1,000 inhabitants) and Deva (1,006 sq. m / 1,000 inhabitants).

The lowest density of retail spaces can currently be found in Tulcea and Calarasi with 70 sq. m / 1,000 inhabitants, and 98 sq. m / 1,000 inhabitants respectively, even though the average net salaries in these locations are higher than those in Suceava, Oradea or Deva. This situation can also be noticed in the case of large cities such as Cluj-Napoca, Alba Iulia, Craiova, Iasi and even Bucharest, which have relatively low densities of modern retail spaces, even though the purchasing power in these cities is the highest or among the highest in the country.

In Bucharest, spaces totaling 48,400 sq. m are currently under construction, namely the Promenada Mall extension in the Floreasca – Barbu-Vacarescu area, Lemon Retail Park in Voluntari and Greenfield Plaza.

The total stock of retail spaces in Romania reached 4.14 million sq. m at the end of Q1 2022, with 2.88 million sq. m being outside Bucharest, and 1.26 million sq. m in the Capital City.

In Bucharest, the highest density of retail spaces is in the 1st District (758 sq. m / 1,000 inhabitants), followed by the 6th (655 sq. m / 1,000 inhabitants) and the 3rd (488 sq. m / 1,000 inhabitants) Districts.

Bogdan Marcu, Partner, Retail Agency, Cushman & Wakefield Echinox: “Almost all developers present in the local retail market have announced ambitious investment plans for the next period, thus showing once again their confidence in this real estate segment. We notice a diversification of the formats they intend to bring on the market, the new investments being equally directed towards shopping centers and retail parks. In terms of purchasing power and population, there are still important cities which can absorb modern retail schemes if these are adapted accordingly to the existing needs and requirements.”

 

The main projects under construction and in various planning phases announced by the developers

 

City Project Developer           GLA

(sq. m)

Delivery
Cluj-Napoca Cesarom Mall Prime Kapital, MAS RE 73,300 2026
Iasi Mall Moldova extension Prime Kapital, MAS RE 58,600 2024
Craiova Promenada Mall NEPI Rockcastle 52,300 2023
Pitesti Arges Mall Prime Kapital, MAS RE 52,100 2024
Resita Nhood Resita Nhood 35,000 n.a.
Bucharest Promenada Mall extension NEPI Rockcastle 34,000 2025
Arad AFI Palace Arad AFI Europe 32,000 n.a.
Alba Iulia Alba Iulia Mall Prime Kapital, MAS RE 28,900 2022
Pitesti Shopping Park Pitesti Squaretime/Mitiska REIM 22,500 2022
Bacau Arena Mall extension Arena City Center 20,700 2023
Vaslui Funshop Retail Park Scallier 10,000 2022
Giurgiu Shopping Park Giurgiu Squaretime/Mitiska REIM 9,300 2022
Slatina Shopping Park Slatina Squaretime/Mitiska REIM 8,600 2022
         

 

Retail stock density / 1,000 inhabitants vs. average net salary

 

 

Related posts

Obama II: The big international challenge

The local subsidiary of the International Group El Grupo Número 1, P3 Bucharest A1’s newest tenant

NINE O'CLOCK

The warning of bread