PL

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

Retail & leisure

Poland One in seven square metres of retail space to be built in Poland

schedule 21 November 2024
Opr./edited by ANZ

According to Trends Radar. Real Estate: From Stabilisation To Optimism, the latest report from Cushman & Wakefield, in 2024, Poland came second in Europe in terms of new retail supply, surpassed only by France. 

Office & mixed-use development

Poland MCP moves into Korona Office Complex

schedule 21 November 2024
Opr./edited by ANZ

The Małopolska Centre of Entrepreneurship will move into the GTC Newton building, which is part of the Korona Office Complex. The institution will occupy an area of over 3,000 sqm.

Retail & leisure

Poland Polish retail market performs well

schedule 21 November 2024
Opr./edited by ANZ

According to BNP Paribas Real Estate Poland latest report “At a Glance: Modern Retail Market in Poland, Q3 2024”, predictions of the imminent decline of shopping centres in Poland have proven premature. In Q3 2024, the Polish retail market expanded by another 116,000 sqm. 

Hotels

Serbia Luxury stay in Belgrade

schedule 20 November 2024
Opr./edited by ANZ

The St. Regis Belgrade hotel, the brand's first property in Serbia, has begun operating in Belgrade. It is located in the 42-storey high-rise Belgrade Tower (Kula Beograd), built at the meeting point of the Sava and Danube rivers.

Warehouse & industrial

Czech Republic Renegotiations account for nearly 40 pct of industrial leases

schedule 20 November 2024
Opr./edited by ANZ

According to Savills' analysis of the industrial real estate market in the Czech Republic, lease renegotiations, or the extension of older lease agreements in existing premises, have become a significant part of the warehouse and manufacturing real estate market. 

Investment & finance

Poland A EUR 75 mln loan for Panattoni Park Sulechów III

schedule 20 November 2024
Opr./edited by ANZ

Panattoni has secured a EUR 75 mln loan from Citibank (London Branch). The funds are intended to finance the Panattoni Park Sulechów III investment.

Infrastructure

Poland Grand station in little Brzeziny

schedule 19 November 2024
Opr./edited by ANZ

The Warsaw - Łódź stretch will be the first section of the High Speed Railway in Poland. It is on this route that a new station will be built in Brzeziny, a district town hitherto deprived of any access to rail transport.

Warehouse & industrial

Poland Lynka is staying with Panattoni

schedule 19 November 2024
Opr./edited by JC

Lynka, a European supplier of branded apparel, has extended its lease of 9,000 sqm of warehouse, manufacturing, office and social space in Panattoni Park Kraków IV.

Investment & finance

Czech Republic Czech fund makes a big purchase

schedule 18 November 2024
Opr./edited by JC

Fond Českého Bydlení (the Czech Housing Fund) has successfully completed the acquisition of two apartment buildings located in Beroun and Chomutov. This transaction adds 313 fully rented apartments to the company's portfolio.

Eurobuild CEE

Poland Time for change

schedule 15 November 2024
Eurobuild CEE

As the media market in Poland evolves, we also need (and want to!) adapt to these changes and move with the times. Soon, access to our archive will be subject to a small payment.

Hotels

Hungary Puro has financing for an investment in Budapest

schedule 15 November 2024
Opr./edited by ANZ

Bank Gospodarstwa Krajowego has granted a loan of up to EUR 40 mln to the Hungarian company from the Puro Group. The financing will be used for the construction of a four-star premium hotel in the centre of Budapest. 

Public buildings

Poland University's new investment in Warsaw

schedule 15 November 2024
Opr./edited by ANZ

The University of Warsaw has signed a contract with the general contractor for a project at ul. Bednarska 2/4. The new building will house the faculties of Journalism, Information and Bibliology and Economic Sciences, as well as the Academic Campus Radio. Construction work will begin at the end of November. 

Investment & finance

Poland Full occupancy across the ELF 2

schedule 14 November 2024
Opr./edited by JC

Savills IM has let the last vacant rental space of the European Logistics Fund 2 (ELF 2) in a logistics property in Konotopa, Poland, on a long-term lease.

Investment & finance

Poland First loan of its kind

schedule 14 November 2024
Opr./edited by JC

Panattoni has been awarded a pioneering green loan from Berlin Hyp worth EUR 74.34 mln. The financing is for a logistics center in Bydgoszcz developed for an e-commerce firm.

Residential

Czech Republic YIT is going to Brno

schedule 13 November 2024
Opr./edited by JC

YIT continues to grow in line with its strategy in the CEE countries. The company is expanding its operations in the Czech Republic and establishes a joint venture with the Czech investor group RSJ Investments.

Investment & finance

Poland Vantage has EUR 100 mln to invest in Poland

schedule 13 November 2024
Opr./edited by ANZ

Vantage Development's Polish subsidiaries have secured a EUR 100 mln loan from the European Bank for Reconstruction and Development. The TAG Immobilien-owned developer and operator will use the funds raised to expand its PRS investments in Poland.

Hotels

Bulgaria The first Mercure in Bulgaria

schedule 13 November 2024
Opr./edited by ANZ

Mercure, a brand of the Accor Group, announces the opening of its first hotel in Bulgaria. The new property is located in one of Sofia's most prestigious districts, Manastirski Livadi, with easy access to the National History Museum and Vitosha National Park.

Warehouse & industrial

Poland All occupied at Hillwood in Łódź

schedule 13 November 2024
Opr./edited by ANZ

The two Łódź logistics centres - Hillwood Łódź Chocianowice and Hillwood Łódź Górna - have been fully leased. The latest agreement has been concluded at the second facility, with a client from the electronics industry.

Warehouse & industrial

Poland Orlen chooses P3 Piotrków park

schedule 13 November 2024
Opr./edited by ANZ

P3 Logistic Parks and Orlen have signed a lease agreement for nearly 24,000 sqm of space in the P3 Piotrków park. The facility will serve as a warehouse for supplying the corporation's fuel stations.

Warehouse & industrial

Poland Panattoni launches a BTS factory

schedule 12 November 2024
Opr./edited by JC

Panattoni has completed a BTS development in Świdnik. A new factory was built for Trilux, a German company operating in the professional lighting sector.

Latest in Investment & finance

schedule 20 November 2024

A EUR 75 mln loan for Panattoni Park Sulechów III

Panattoni has secured a EUR 75 mln loan from Citibank (London Branch). The funds are intended to finance the Panattoni Park Sulechów III investment.

schedule 18 November 2024

Czech fund makes a big purchase

Fond Českého Bydlení (the Czech Housing Fund) has successfully completed the acquisition of two apartment buildings located in Beroun and Chomutov. This transaction adds 313 fully rented apartments to the company's portfolio.

schedule 14 November 2024

Full occupancy across the ELF 2

Savills IM has let the last vacant rental space of the European Logistics Fund 2 (ELF 2) in a logistics property in Konotopa, Poland, on a long-term lease.

schedule 14 November 2024

First loan of its kind

Panattoni has been awarded a pioneering green loan from Berlin Hyp worth EUR 74.34 mln. The financing is for a logistics center in Bydgoszcz developed for an e-commerce firm.

schedule 13 November 2024

Vantage has EUR 100 mln to invest in Poland

Vantage Development's Polish subsidiaries have secured a EUR 100 mln loan from the European Bank for Reconstruction and Development. The TAG Immobilien-owned developer and operator will use the funds raised to expand its PRS investments in Poland.

schedule 07 November 2024

Green loan signed for Warsaw Spire

Immofinanz signed a new five-year, EUR 180 mln green loan with Helaba, pbb Deutsche Pfandbriefbank and Berlin Hyp, secured by myhive Warsaw Spire. The office tower offers over 71,000 sqm of GLA and holds a BREEAM Excellent certification.

schedule 31 October 2024

Warimpex withdraws from Russia

Warimpex Finanz- und Beteiligungs has sold its last remaining project in Russia, the Airportcity St. Petersburg, and is therefore no longer active in the Russian market.

schedule 30 October 2024

Trinity One office complex in Warsaw purchased by Longvilliers

Revetas Group has announced the successful disposal of the Trinity One class-A office complex in Warsaw to Longvilliers. The terms of the transaction were not disclosed.

schedule 30 October 2024

Poland can win nearshoring investment

Poland’s highly skilled workforce, growing pool of environmentally compliant buildings and developed IT services market make it an attractive destination for foreign investors who want to shorten their supply chains, according to experts on nearshoring at law firm DLA Piper.

schedule 30 October 2024

Refinancing near Pruszków

BNP Paribas Bank has granted MLP Group financing in the total amount of EUR 21.5 mln. The funds raised will be used to refinance the construction of a 34,600 sqm warehouse facility at the MLP Pruszków II logistics centre.

schedule 28 October 2024

OUP gains millions from leasehold sales

One United Properties has sold long leasehold properties, part of its portfolio of commercial projects, worth EUR 52.4 mln in the last 18 months. The total GLA of the assets is 20,851 sqm.

schedule 25 October 2024

Atenor sells Lakeside

Atenor has announced the signing of an agreement with an international investor for the sale of the Lakeside project in Warsaw. The transaction, expected to be closed by the end of the year, represents a significant step in Atenor’s debt reduction strategy.

schedule 24 October 2024

Starwood Capital and pbb are partnering up

Starwood Capital Group, a global private investment firm focused on real estate, and Deutsche Pfandbriefbank announced they have signed a Memorandum of Understanding to finalise a strategic partnership in CRE lending.

schedule 22 October 2024

Loan to Hillwood Zgierz II

Hillwood Polska and mBank have closed a financing deal of more than EUR 38 mln for the construction of the Hillwood Zgierz II logistics park. This is yet another cooperation between the companies.

schedule 21 October 2024

The Bridge secures millions

Ghelamco has secured bank financing for The Bridge office complex in downtown Warsaw. The construction and investment loan was provided to the developer by Santander Bank Polska, which will also be a tenant of the skyscraper.

schedule 16 October 2024

Ozimska Park sold to Newgate

Redkom Development has sold the 17,000 sqm Ozimska Park retail park in Opole to Newgate Investment.

schedule 11 October 2024

Panattoni sells Warsaw park

Panattoni has sold the 39,000 sqm City Logistics Warsaw IV logistics park to an undisclosed international real estate investor for EUR 53.5 mln.

schedule 10 October 2024

MLP closes green notes offering

MLP Group has successfully closed its debut senior green notes offering, worth EUR 300 mln (approx. PLN 1.3 bln). Investor demand far exceeded expectations, resulting in the offering being multiple times oversubscribed.

schedule 10 October 2024

FDI stock increase in construction and real estate

According to data from the National Bank of Romania analyzed by the Cushman & Wakefield Echinox, the real estate and construction sector became the second largest recipient of foreign capital in Romania, after industry. The sector attracted approx. EUR 2.2 bln of foreign direct investments in 2023, as the share of this economic activity in the overall FDI stock stood at 17.5 pct at the end of 2023.

schedule 09 October 2024

Park Szczecin VI gets green financing

Accolade has secured EUR 29.5 mln net financing from BNP Paribas Bank Polska for the development of Park Szczecin VI industrial park, located in the Dunikowo Special Economic Zone. The facility will have an area of over 54,000 sqm. 

Edition 11 (293) November 2024

Latest comments

Categories

Log in

Forgot your password? Reset password

Your order

Your data
Create an access password
The password will allow you to access the materials from any device
Invoicing data
Order summary
Net order
VAT (%)
Gross order
Already have an account? Log in
Payment security is ensured