Real Estate Report: Over 60% of Romania’s Modern Retail Space in Top 10 Cities

Over 60% of the total modern retail space in Romania is concentrated in the first 10 large cities, with over 200,000 inhabitants, according to a report by a real estate consulting firm.
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, the real increase in wages, i.e. the difference between the increase in wages and that of prices, returned to positive territory. By the end of 2023, wage growth of around 9% in real terms was already comparable to pre-pandemic levels, 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. According to her, 2023 was another good year for both retailers and owners.
“Based on Eurostat data, Romania offers some of the highest profit margins in the EU for a variety of goods, from clothing to footwear to toys and pharmaceuticals. While the cost of risk is also at a higher level than in other countries, and this can, for example, have consequences on the bottom line when contracting a loan, we still consider these positive results a confirmation of a still insufficient market covered from the point of view of retail schemes and a market that can welcome new players”, stated Liana Dumitru.
The report notes though, that while overall sentiment is good among market participants, from customers and retailers to landlords, consumers have also become more cautious, as is often the case in times of heightened uncertainty, with many turning to products with more affordable prices. “After years of strong price increases, discounters continued to perform well in 2023 and we expect them to maintain this favorable dynamic in the future,” the report states. Otherwise, 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.
citiesColliersmodernreal estatereportretail spaceretailersRomania
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