Some 100,000 sqm of new retail spaces were delivered last year in Romania, of which 80% were integrated in retail parks, while new projects with a leasable area of around 230,000 sqm are expected in 2023, which would be a 6-year high, according to Cushman & Wakefield Echinox.
New projects consisting of 20,000 sqm were completed in Q4 2022, while the total retail stock across Romania reached 4.2 million sqm at the end of 2022. Shopping centers had a share of 56% of the total stock, while 38% were in retail parks and 6% in commercial galleries.
In the 2023-2025, shopping centres will have a share of more than 60% of the new expected stock, which would be a reversal of the trend recorded by this year. Across Romania, the development of retail parks had accelerated during the pandemic.
“The 2022 new supply and the plans for the next three years prove once again that traditional retail will continue to play a key role in the overall real estate landscape. This is primarily explained by the fact that malls, retail parks or commercial galleries are no longer just shopping destinations. They provide the perfect ecosystem for the new brands which are contemplating to enter the market, and also for the existing ones to adapt their sales policies to the emerging changes in consumer behavior,” said Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox.
Almost 600,000 sqm of retail spaces are currently in different planning stages and are expected to be delivered between 2023 and 2025. Around 40% of this pipeline is in line to be completed by the end of the year, according to data from the major market players quoted by the real estate agency.
Last year, the biggest completed project was the extension of Colosseum Mall in Bucharest spanning 16,500 sqm. By 2025, the single largest delivery will be Oasis Consulting’s Prima Shopping Center in Sibiu that will have a leasable area of 70,000 sqm.
