According to data from the Cushman & Wakefield Echinox, retail projects totalling more than 87,000 sqm were delivered throughout H1 2024, corresponding to a sharp increase when compared with the 30,000 sqm new supply from the same period of 2023. This year’s evolution was mainly fuelled by Q2 completions.
Projects with a cumulative area of 78,100 sqm were delivered in Q2 2024, an impressive growth compared with the previous quarter (9,300 sqm) and also with Q2 2023 (17,000 sqm).
The new supply was dominated by the shopping centre format, following the completion of Arges Mall, a 51,400 sqm shopping centre developed by Prime Kapital - MAS Real Estate in Pitesti and the second phase of Fashion House Pallady in Bucharest (5,700 sqm) by Liebrecht & WooD.
Moreover, two retail parks were also delivered, namely Aurora Retail Park in Giurgiu and OK Shopping Center in Bistrita, totaling 21,000 sqm GLA.
The modern retail stock in Romania was of 4.54 mln sqm at the end of H1, out of which 55 pct consisted of shopping centres, while retail parks and commercial galleries accounted for the other 45 pct.
The pipeline for H2 2024 is also robust, as projects cumulating around 155,000 sqm are due to be delivered by the end of the year.
Romania remains an important retail destination in Central and Eastern Europe, as developers continue to invest in new projects to support the retailers’ expansion plans. Whether there are retail parks, built mainly in smaller cities or shopping centres located in regional hubs, the retail sector is highly dynamic, in a context where Romania was the second most important beneficiary of such investments in CEE across H1, after Poland.
Dana Radoveneanu, head of Retail Agency, Cushman & Wakefield Echinox
360,000 sqm of retail spaces were delivered in CEE during H1, with retail parks having a share of almost 80 pct (274,000 sqm). Only 85,000 sqm of shopping centres were completed in the region during this period, with Romania being dominant in this regard (60 pct share).
There were no major changes pertaining to rental levels in Q2. The prime shopping centre rent in Bucharest stood at EUR 80-85 sqm/ month for a 100-150 sqm unit located in a dominant project, while the corresponding figures in secondary cities, such as Cluj-Napoca, Timisoara, Iasi and Constanta were ranging between EUR 50-65/ sqm/month, the same situation being observed in tertiary locations, where levels between EUR 30-35 sqm/month were recorded.
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