2023 will mark a new record in terms of new supply of retail premises

2023 will mark a new record in terms of new supply of retail premises

2023 will mark a new record in terms of new supply of retail premises 923 600 BUCHAREST REAL ESTATE CLUB


The retail market is heading for a new record year in terms of retail space deliveries, with performances over 2022 for both shopping centres and retail parks, show the conclusions of the “OMNICHANNEL CONFERENCE – The Era of Responsible Development” event organized yesterday by Bucharest Real Estate Club and Romania Property Club.

“70,000 sqm of retail space were delivered in the first three quarters of this year, with 230,000 sqm scheduled for delivery by the end of the year. For this new stock, shopping centres have a dominant share of 60%, with the remaining 40% being retail parks,” said Dana Radoveneanu, Head of Retail, Cushman & Wakefield Echinox. It mentioned that another 400,000 sqm are in various phases of development, with expected delivery by 2025.

For Bucharest, the main projects under development are the expansion of the Promenada mall and the IMGB Value Center. The largest project under construction in the country is Prima Shops Sibiu by Oasis, other cities that attract retail investment being Cluj-Napoca (the new Iulius project), Brașov, Iași, Sibiu, Arad, Pitesti and Bacău.

“The food segment experienced the biggest transformation after the pandemic years. From our data we see increases of up to 50% in the food court area in 2023 compared to 2019. Flows have changed, delivery people have appeared and we are also analysing the opportunity to have dedicated delivery areas in the new projects we are developing ”, said Sebastian Mahu, Head of Asset Management, Iulius during the event.

“Internationally, the trend is towards immersive experiences where art merges with technology, attracting both children and adults. Such a concept was opened in the Northern area of Bucharest”, said Dana Radoveanuanu regarding the new entertainment concepts that are making their way on the local market.

Cătălin Pozdarie, General Manager, Hervis pointed out the change in consumer behaviour. “After people faced the reality of death during the pandemic years, they spent more on vacations and this fact is affecting retailers in the middle consumer area, as is Hervis. The Romanian market has become extremely competitive, combined with inflationary pressure, which leads to a difficult environment. We’ll see who survives and who doesn’t.”

16 new brands entered the Romanian market between 2002 and 2023: Primark, Half Price, Modivo, Lefties, InStreet, Wittchen, Crocs, Jimmy Key, Popeyes, Poke House, Submarine, Bath & Body Works, Tedi, Fressnapf and Pikito . With 16 entries, Romania ranks second in the CEE area after the Czech Republic – 38, ahead of Poland – 13, Slovakia – 8, Bulgaria – 6 and Hungary – 5, according to Cushman & Wakefield Echinox data.

In addition to the inaugurations in Romania, Bulgaria, the Czech Republic, Poland and Hungary, Teilor announced a new concept at the BREC conference. “We are working on a new “DAR” concept aimed at generation Z, next year we will open two stores”, explained Lilian Furtună, Global Expansion Director, Teilor. The company has reached a number of 70 stores, of which 53 are in Romania.