The modern retail stock in Romania reached 4.62 million sq. m. in 2024, with projects cumulating around 180,000 sq. m. GLA being completed in the year, reflecting a 15% decrease when compared with 2023, while still being one of the best years in the past decade when it comes to new completions, according to findings in a specilaist survey released on Thursday.
According to Cushman & Wakefield Echinox, developers completed 14 retail projects in 2024, representing both new schemes and extentions of existing projects, with retail parks having a 64% share in the delivered areas, the rest consisting of shopping centres.
Pitesti, Ploiesti, Giurgiu, Crevedia, Hunedoara, Bistrita, Sinaia, Ramnicu Valcea are among the cities witnessing such investment in 2024, while the most important project completed in 2024 in Bucharest was Jumbo Centre (25,700 sq. m.), which represented a complete refurbishment of the former Liberty Centre.
Arges Mall in Pitesti, an 51,400 sq. m GLA project owned by Prime Kapital - MAS Real Estate, was the largest retail scheme delivered in 2024. Other projects finalised during the year were Shopping Park Pitesti (22,500 sq. m. developed by Mitiska REIM - Square 7 Properties) and Aurora Retail Park Giurgiu of 13,000 sq. m. owned by Cometex.
The potential for further growth is reflected in the current developers' plans which exceed 700,000 sq. m. GLA (under construction or planned projects) and which are due to be completed by 2028/ 2029, with Cluj Napoca, Iasi, Bacau, Galati and Bucharest being some of the targeted locations for new investments.
According to Dana Radoveneanu, Head of Retail Agency Cushman & Wakefield Echinox, "the Romanian retail market remains attractive for both retailers and developers, despite the local and European macroeconomic pressures. The recent deliveries of modern retail projects and the robust long-term pipeline underscore the market's potential. Whether we are referring to smaller retail parks in emerging cities or to large urban regeneration projects, there is a clear upward trajectory of this market segment. Favored by one of the lowest densities of modern retail spaces, but also by impressive retail sales' growth, Romania continues to strengthen its position on the European retail market."
The prime shopping centre rent in Bucharest stabilised in Q4 2024 to EUR 90 /sq. m. /month, while the corresponding figures in secondary cities - Cluj-Napoca, Timisoara, Iasi and Constanta - remained flat, ranging between EUR 50-65 /sq. m./month, the same situation being observed in tertiary locations, where levels between EUR 30-35 /sq. m./month were recorded.
Cushman & Wakefield Echinox is a leading real estate consulting company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently. Our team of over 80 professionals and collaborators offers a full range of services to investors, developers, owners and tenants.
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