“Small towns have lower purchasing power compared with large cities, which developers have targeted up until a few years ago, but they do have jobs and entrepreneurs. Besides, many small towns are satellites of big cities and can form a cluster that would attract over 100,000 inhabitants, the size of a medium city,” said Simina Niculita, Partner & Head of Retail Agency la Colliers.
Retail was the hardest hit real estate sector in 2020 but Romania had the third fastest rebound rate in retail sales in the European Union, after Lithuania and Denmark.
Still, the general impact and recovery remain uneven, Colliers consultants said, as the quick rebound was largely due to online retail and retail schemes in secondary and tertiary cities.
Romania currently has a modern retail stock of approximately 4 million square meters, of which over 2.7 million sqm in shopping malls and the rest in retail parks. Over 80% of new retail space deliveries expected in 2021 will be in retail parks, signaling a shift towards proximity-based projects or lower development costs.
Expected deliveries total 150,000 sqm, the bulk of which will be delivered by two investors: Prime Kapital/MAS REI with nearly 53,000 sqm in three new projects (in Ploiesti, Sfantu Gheorghe, and Barlad) and Mitiska with nearly 25,000 sqm in four new projects (in Baia Mare, Tulcea, Medias, and Slatina).