“It is almost impossible to develop a genuine mall, of over 30,000 sq m, outside Bucharest, which is why developers are finding various solutions. In Craiova for instance, Auchan took over part of the project, which provided the necessary financing. At the current rent levels, malls are no longer profitable. The situation will improve when the occupancy rate of existing projects rises and retailers seek to expand, but don’t have where,” believes Razvan Sin, head of the retail department of DTZ Echinox.
A single mall is currently under construction outside Bucharest, a 30,000 sq m mall on the outskirts of Ploiesti, a project in which South Africa’s NEPI partnered with the Carrefour group to connect the new building with the shopping gallery, also a novelty for the Romanian shopping center market.
Under the circumstances, the growth rate of shopping malls will slow down over the next few years, especially outside of Bucharest. However, the commercial segment seems to be performing best on the real estate market, while the residential segment continues to be down, with office projects also being few.
(English version by Daniela Stoican)