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More than 60% of the total modern retail space in Romania is concentrated in the first 10 big cities, with more than 200,000 inhabitants, according to a report by the real estate consulting firm Colliers.
Currently, Romania has a total modern retail stock of over 4.3 million square meters, of which more than 2.7 million square meters are malls, and the rest mainly retail parks.
"Starting with the first half of last year, real wage growth, i.e. the difference between wage growth and price growth, returned to positive territory. By the end of 2023, wage growth of around 9% in real terms was already comparable to levels since before the pandemic, which had a positive impact on the market and consumer confidence and, therefore, on the results of retailers and demand on the retail market in general," said Liana Dumitru, Retail Agency Director at Colliers.
Colliers' consultants note that while the general sentiment is good among market participants, from customers and retailers to landlords, consumers have also become more cautious, as is usually the case in times of heightened uncertainty, with many refocusing to products with more affordable prices.
"After years of strong price increases, discounters continued to perform well in2023 and we expect them to maintain this favorable dynamic in the future," the report states.
The returns that the local market offers to retailers, together with the rapid recovery of the retail sector after the pandemic, one of the fastest recoveries in the EU, have put Romania back on the radar of international retailers.
According to the source, 2023 ended with one of the best results since 2011 in terms of deliveries of new retail projects, adding approximately 220,000 square meters to the total retail area, more than double compared to the previous two years, the annual market report published by Colliers, reads
