Romania's retail market experienced a challenging Q1 2026, according to a report by Cushman & Wakefield Echinox. While macroeconomic indicators reflect a period of adjustment, the high street segment and medium-term development pipeline remain robust.
At the beginning of 2026, inflation reached 9.9%, the highest rate in the European Union, directly impacting retail sales, which declined by 5.8%. This decrease was driven by a 9.2% drop in non-food product sales and a 2.7% decrease in the consumption of food, beverages, and tobacco. However, analysts anticipate a recovery starting in the second half of the year, with a year-end inflation forecast of around 5%.
In this context, only one notable completion was recorded during the first three months of 2026, namely M Park Titan in Bucharest (8,500 sqm GLA), developed by M Core, the largest retail project delivered in Bucharest over the past four years. Although new supply was limited in Q1, developers continue to see potential in the Romanian retail market and are investing in new projects, with more than 320,000 sqm of retail spaces currently under construction nationwide.
Approximately half of this total (around 150,000 sqm) is scheduled for delivery by the end of 2026, maintaining the development pace seen in recent years. Among the major projects under construction or in advanced planning stages are Rivus Cluj (142,000 sqm), Galați Retail Park (38,300 sqm), the extensions of Promenada Mall in Bucharest (32,000 sqm) and Palas Iași (25,000 sqm) or M Park Galați (28,500 sqm).
Dana Radoveneanu, Head of Retail Agency Cushman & Wakefield Echinox said: "Developers' appetite for new retail projects remains unchanged, even though consumption has been under inflationary pressures in the first part of the year. With more than 320,000 sqm currently under development, there is confidence in the long-term potential of the Romanian market, both through shopping center projects and retail parks." The prime headline rent for high street spaces on Calea Victoriei continued growth, now being quoted at €90 per sqm per month (+50% year-on-year) as a direct result of new store openings and the expected arrival of luxury retailers in the coming months.
