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Romania Retail is strong in Romania

Investment & finance
According to the special research report Romania Retail Destinations 2024, released by CBRE Romania, by the end of 2024 the stock of modern retail spaces in the country will overpass 4.5 mln sqm. It will set a new record for Romania.

Circa 186,000 sqm could be added to country’s modern retail stock if taking into consideration under-construction projects. The popularity of the specialized format is noticed in the forecasted developments, claiming 95 pct of the future new supply and when looking exclusively at the under-construction units, retail park is the predominant format to be developed nationwide. Pitesti city is the recipient of the main project in the pipeline and set to be brought on the market this month, respectively Arges Mall, a 52,100 sqm GLA concept developed by Prime Kapital.

According to the report, the major cities in the country surveyed by CBRE will attract approximately 185,000 sqm in the following period in different construction or planning stages. The largest shares of new supply are located in Bucharest or in its proximity, followed by Iasi, Cluj, Brasov, and Timisoara.

Romania maintains its position as an attractive market for international retailers, with many advantages, such as: increasing purchasing power, retail spending growing rates, a constant appetite for new brands, an educated workforce, and a very low vacancy rate (below 3% on average) for the existing spaces. Looking more closely at Bucharest, home to almost a third of the modern retail stock, the country's capital has strong purchasing power, which is now higher than Budapest – the closest CEE capital in this respect, and with cities such as Cluj-Napoca and Timisoara very close to the capital's level. Also, in terms of vacancy rates, Bucharest remains at a very low ratio, with overall vacancy below 1 pct.

Whether the modern stock of retail space will exceed a new perceptual threshold and it could sound impressive still it is not enough, as many international retailers are interested in entering the Romanian market, and the demand for large areas has been increasing. 2024 is another dynamic year from a commercial point of view, considering the brands that have already opened or announced their intention to open locations in Romania, names such as Kiko Milano or Happy Restaurants and more to come from sports, convenience, fashion, and beauty sectors. Romania holds the potential to attract other major international brands in the foreseeable future, and the fact that their expansion here is backed by our extensive and unique experience is always a winning formula.
Carmen Ravon, head of Retail Occupiers at CBRE

Although the e-commerce industry registers year-on-year growth, the forecasted volume for 2024 is EUR 7 bln – meaning a 11 pct YoY increase, this segment facing its own challenges as caution is the guiding principle for buyers affected by the price changes. Companies continue to focus their business on shopping centres or retail parks, looking to opening more stores. Romanians maintain their large appetite for fashion despite economic challenges, which puts our country on the retailers’ list that want to expand their business regionally. Nine new companies, mainly from fashion and food & beverage sectors, chose to enter the Romanian market in 2023. Five of them have inaugurated their first units during the last year, while other four have announced their intention to open a store or secured a retail space and prepare launching their business, an example in this regard being Happy Bar & Grill, that announced its first location in AFI Cotroceni.

Romania’s retail scene is a blend of established markets and untapped potential. CBRE's Romania Retail Destinations 2024 report provides a roadmap for navigating its complexities. By understanding the unique dynamics of each city, businesses can tailor their strategies to achieve long-term success.
Daniela Gavril, head of Research at CBRE Romania

In terms of total existing retail stock, Bucharest ranks first with 1.25 million sqm, followed by Timisoara (218,800 sqm), Constanta (183,600 sqm), Brasov (181,000 sqm) and Craiova (175,000 sqm). Although the purchasing power of Cluj's inhabitants ranks third after Bucharest and Timisoara, the city felt out of the top five cities in terms of modern retail stock by not delivering new supply since 2022, when it recorded 157,600 sqm. At the same time, Cluj-Napoca has the highest prime rent for shopping centres, of EUR 70/sqm per month, after Bucharest which reaches the threshold of EUR 80/sqm per month. Iasi, Timisoara, and Constanta report values of EUR 60-65/sqm per month, while the rest of the cities in the analysis are at EUR 45/sqm per month.

At the end of 2023, shopping centres, considered the traditional retail format, claim across the country a bit over a quarter from the total new supply area as opposed to the retail park format which represents 73 pct of the newly inaugurated area. The trend for the specialized format (meaning retail parks) is constantly gaining more weight in the yearly new supply and could be observed in numbers starting with 2021 when retail developers predominantly focused on schemes that meet three essential points: small sized with potential for growth, easy to access, close to end users, even if that means outside the capital city or main regional cities.

At the same time, modern stock in the main cities continues to favour the shopping centre format, with almost all cities surveyed recording over 60 pct of stock in this format. A notable exception is Oradea, where retail parks account for 54 pct, contrasting with Brasov, where shopping centres account for 94 pct. In terms of the cities with the largest shopping centres, Bucharest has the largest surface area (773,300 sqm), 4.5 times larger than the next largest city, Brasov (171,000 sqm). Next is Timisoara (170,000 sqm), followed by Cluj-Napoca (more than 123,000 sqm), and Constanta (118,000 sqm), figures that have not changed since 2022.

As the Q1 of 2024 came to an end, it is noteworthy that Retail Trade maintains its positive trajectory and at the same time that demand is mainly focused on Prime locations. Even if developers are still cautious, so that the malls that most retailers are looking forward to are not being developed, they are focusing on retail parks, which have lower investment costs, allow for faster openings and in locations that enter tertiary cities thus developing modern consumer habits across the country.

Latest news

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schedule 23 May 2024
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schedule 04 April 2024
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schedule 23 May 2024
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Passerinvest Group symbolically launched the construction of the multifunctional Hila building in Brumlovka, Prague 4. Upon its completion in 2027, the building will provide a combination of approximately 20,500 sqm of offices for rent, 71 rental flats and retail spaces of 2000 sqm.

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Hungary Vitrum to be handed over in autumn 

schedule 23 May 2024
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Liget Center Vitrum, part of Wing Liget Center multi-building project developed by Wing in the centre of Budapest, is structurally complete. The new boutique office be completed in the autumn.

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Hungary Skybar opens in Budapest

schedule 22 May 2024
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Cloud IX, Budapest’s latest panoramic skybar, has been opened in the ibis & Tribe Budapest Stadium Hotel in the WING Liberty building. Opened last December in Budapest’s District IX, the hotel complex boasts a total of 332 rooms and a wide range of services.

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Poland Green financing for three CPIPG office assets

schedule 22 May 2024
Opr./edited by ANZ

CPI Property Group Poland has concluded a green refinancing transaction with Aareal Bank amounting to more than EUR 277 mln. The funds received will be used for the refinancing of three Warsaw office properties: Warsaw Financial Center, Equator IV and Eurocentrum.

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Poland Mercer isn't moving out

schedule 22 May 2024
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Global firm Mercer, part of the Marsh McLennan Group, has renegotiated its lease at the myhive Nimbus building and remains at 7,300 sqm.

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schedule 22 May 2024
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Romania Phase III of The Level Apartments takes off

schedule 22 May 2024
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Romanian residential developer Redport Capital has announced the start of construction of Phase III of The Level Apartments. The project has received a building permit for 105 apartments to be developed with an investment of EUR 13 mln.

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Poland CTP will build for dogs

schedule 22 May 2024
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Panattoni Park Kraków East IV is ready

schedule 22 May 2024
Opr./edited by ANZ

Panattoni has completed the construction of Panattoni Park Kraków East IV. The completion will be financed with a EUR 10.5 mln loan from Bank Gospodarstwa Krajowego. The facility has been fully leased by Omega Pilzno.

Office & mixed-use development

Poland Batory I is fully let

schedule 21 May 2024
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Poland Some Oxygen for IT company

schedule 21 May 2024
Opr./edited by JC

LSI Software, a provider of IT systems that enhance operations and business management, has become a new tenant of the Oxygen Park office complex in Warsaw.

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Poland New park from Panattoni

schedule 20 May 2024
Opr./edited by JC

Panattoni is launching the construction of a new speculative centre in the Łódź region. The project is to have an eventual size of close to 30,000 sqm

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Poland Baskerville gets independent

schedule 20 May 2024
Opr./edited by JC

Baskervill, an international architectural, engineering, and design firm, opened up its office in Gdańsk. A 200-sqm space is located in Officyna building.

Office & mixed-use development

Poland House of Skills is staying at Bolero

schedule 20 May 2024
Opr./edited by JC

Consulting and Training Consortium, owner of House of Skills and e-learning.pl brands, has extended its lease at Bolero Office Point 1 in Warsaw. The new lease agreement provides the entire organization with 900 sqm of office space that has been signed through 2030.

Warehouse & industrial

Romania Cargus opens its new hub in Sibiu

schedule 17 May 2024
Opr./edited by ANZ

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Poland UBC II will be modern again

schedule 17 May 2024
Opr./edited by ANZ

Atenor, the Belgian developer responsible for the Lakeside development in Warsaw's Mokotów district, intends to renovate the neighbouring UBC II building. The project received planning permission in March this year.

Office & mixed-use development

Poland Axi Immo stays in the tower

schedule 16 May 2024
Opr./edited by ANZ

Axi Immo has decided to extend its existing lease and add new space for its growing business lines in Warsaw's Spektrum Tower office building.

Warehouse & industrial

Romania VGP Park Bucharest North will grow

schedule 16 May 2024
Opr./edited by ANZ

VGP, a European provider of logistics spaces and semi-industrial real estate, has initiated the construction of the third building in VGP Park Bucharest North (A3). Building A covers an area of almost 26,000 sqm and has already two tenants, who have signed lease contracts for a total of more than 8,000 sqm.

Latest in Investment & finance

schedule 22 May 2024

Green financing for three CPIPG office assets

CPI Property Group Poland has concluded a green refinancing transaction with Aareal Bank amounting to more than EUR 277 mln. The funds received will be used for the refinancing of three Warsaw office properties: Warsaw Financial Center, Equator IV and Eurocentrum.

schedule 16 May 2024

Cromwell sells Polish retail portfolio

Real estate investor and fund manager Cromwell Property Group has announced the sale of six retail centres across Poland, held by the Cromwell Polish Retail Fund to Star Capital Finance for EUR 285 mln.

schedule 16 May 2024

Studio B with a new owner

Skanska has sold the Studio B office building in Warsaw to Stena Real Estate for EUR 86 mln. This is already third transaction between the two parties in Central and Eastern Europe.

schedule 15 May 2024

Hotel Austria Trend is sold

Peakside Capital and Generali Investments Slovenia have sold, on behalf of Generali Adriatic Value Fund, the Austria Trend hotel located in the Slovenian capital.

schedule 15 May 2024

Millions for MLP

ING Bank Śląski has agreed to lend more than EUR 26.8 mln to MLP Group. The purpose of the loan is to refinance existing projects spanning an area of 58,200 sqm, and finance the construction of another 21,700 sqm of warehouse facilities within the MLP Poznań and MLP Poznań II logistics parks.

schedule 14 May 2024

mBank finances City Logistics Kraków III

Panattoni has received financial support for the development of the City Logistics Kraków III project. The EUR 21 mln loan granted by mBank will make it possible to finalise the construction of the logistics park, located in Kraków’s Nowa Huta district.

schedule 13 May 2024

Real money for Real Management

Real Management has signed a loan agreement with mBank for over EUR 14 mln in funding for construction of the Good Point V warehouse and production park in Łubna.

schedule 10 May 2024

Another large transaction for Panattoni

A specialist real estate investor has purchased the Panattoni Park Poznań XI for EUR 92.5 mln. The centre is one of the main logistics hubs for a leading European fashion platform for its operations.

schedule 09 May 2024

ZDR is expanding into Slovenia

The property map of ZDR Investments funds expanded, thanks to the acquisition of three retail parks in the towns of Prevalje, Ravne, and Slovenj Gradec in the northern part of Slovenia. 

schedule 06 May 2024

Immofinanz sells the tower

Euro Real Estate, a member company of the Wilhelm von Finck Group, acquired the City Tower Vienna from Immofinanz. With a purchase price of more than EUR 150 mln, this sale is the largest transaction in the office segment of Austria’s real estate market to date in 2024.

schedule 06 May 2024

Sona will take a piece

CPI Property Group has signed a commitment agreement with British company Sona Asset Management regarding a proposed equity investment of EUR 250 mln in Poland.

schedule 25 April 2024

Newgate buys from Redkom

Redkom has announced that it has finalised the sale of a retail park under construction in Bielsko-Biała to Newgate Investment. The 17,000 sqm retail park is scheduled to open in November this year.

schedule 25 April 2024

A window for investment opportunity

Experts gathered at ULI Poland's annual Game Changers in the Real Estate World conference agreed that current market conditions are creating a window of opportunity for real estate investors willing to act quickly and thoughtfully. Smaller transactions by regional players dominate for the time being, but there is hope for a gradual return of major international players to the Polish property market.

schedule 24 April 2024

Helaba to co-finance 'Le Coeur' project for Hines

Helaba will act as lead manager for its long-standing client Hines in conjunction with the three savings banks in North Rhine-Westphalia, Stadtsparkasse Düsseldorf, Sparkasse KölnBonn and Kreissparkasse Köln, to finance the construction of the 'Le Coeur' project in Dusseldorf. The project has a total lending volume of EUR 270 mln.

schedule 22 April 2024

Mount TFI introduces fund of global REITs to WSE

The first fund investing in REITs, Mount Globalnego Rynku Nieruchomości FIZ, made its debut on the Warsaw Stock Exchange.

schedule 19 April 2024

Panattoni Park Voerde changes hands

Panattoni has completed a sales transaction in Germany. Clarion Partners Europe has acquired a prime logistics hub for EUR 75 mln near Duisburg.

schedule 18 April 2024

Flats, offices and hotels on the agenda

One United Properties has unveiled its strategy for the coming years. It plans to triple its residential offer by 2030, expand its commercial sector and build hotels in Bucharest in partnership with global brands.

schedule 18 April 2024

EUR 1.5 bln on acquisitions in Poland

Baltisse and Straco Real Estate acquire majority stake in Speedwell, expanding reach into Romania and entering Polish market. Speedwell wants to spend at least EUR 1.5 bln on acquisitions in Poland in the coming years. 

schedule 15 April 2024

Retail is strong in Romania

According to the special research report Romania Retail Destinations 2024, released by CBRE Romania, by the end of 2024 the stock of modern retail spaces in the country will overpass 4.5 mln sqm. It will set a new record for Romania.

schedule 10 April 2024

Big splash in Silesia

Mitiska REIM has sold a 6.7ha land plot to Momentum Leisure to develop a theme and water park which will further reinforce the offering of the Europa Centralna retail center, located in Gliwice.

Edition 5 (288) May 2024

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