The developers’ interest has shifted mostly towards tertiary cities with less than 150,000 inhabitants and also towards retail parks, says Cushman & Wakefield Echinox real estate consulting company.
Retail parks continue to be the format targeted by developers in 2022, as more than 80% of the 100,000 square meters of new spaces due to be delivered this year are represented by such schemes.
“The retail market remained highly active in 2021, amid the return of consumption, reflected in the evolution of retail sales, which had a growth rate in 2021 above the one recorded in 2019,” said Bogdan Marcu, partner, retail agency Cushman & Wakefield Echinox.
“ This dynamic, supported by both food and non-food sales, can be noticed in the developers’ expansion plans in Romania, as currently, there are projects amounting to more than 300,000 square meters under different planning stages.”
The 16,500 square meter extension of Colosseum Mall in Bucharest is the only shopping center that will be completed in 2022, thus becoming the first such scheme delivered in the city after six years, the company said.
Scallier, Prime Kapital (in a joint venture with MAS Real Estate), Square 7 Properties – Mitiska, and Iulius Group have the most consistent expansion plans on the Romanian retail market. It is also worth mentioning the interest of the Austrian group Supernova in this particular real estate segment, as it entered the Romanian retail market in 2020, through the acquisition of the Jupiter shopping center in Pitesti, while pursuing further investments in 2021, by acquiring a portfolio of six commercial properties operated by Cora, thus becoming a relevant player.
“Considering that the main targets for new projects in 2022 will once again be the cities with less than 150,000 inhabitants and retail parks will be the dominant format, we might see a return of the focus towards large cities and shopping centers starting from 2023.”
In the last two years, Cushman & Wakefield Echinox’s retail department has leased over 30,000 square meters in retail projects in both Bucharest and throughout the country.
(English version by Loredana Fratila-Cristescu)