Developers to open 500,000 sqm of retail space in Romania over next four years

Real estate developers are expanding their investments in Romania, with half a million square meters destined for retail to be built over the next four years, according to a report by Cushman & Wakefield Echinox.

“Almost all the developers active in the local retail market have announced ambitious investment plans for the next period, proving once again their confidence in this real estate segment,” said Bogdan Marcu, partner at Cushman & Wakefield Echinox, quoted by Economedia.ro.

Over half of that is currently in development in the Center-West region. The planned 270,000 square meters will add to the 1.4 million currently in use, maintaining the region’s status as the most developed one in terms of retail space.

The East region of Romania amounts to 610,000 square meters in retail space at present, with 137,000 more planned, while the South is scheduled to reach roughly 1 million square meters with the new additions.

Reșița remains the largest city in Romania without a modern retail centre, followed by Giurgiu and Alexandria. However, the first two have projects in development that will rid them of their current unwanted status. Ten of the newly announced projects have a surface of over 10,000 square meters.

Only three cities in Romania – Suceava, Oradea, and Deva – have a ratio of 1,000 square meters of commercial space for every 1,000 inhabitants.

Tulcea and Călărași are on the other side of the spectrum, with under 100 square meters per thousand inhabitants, despite having higher average wages than the first three.

Cluj, Alba Iulia, Craiova, Iași, and even Bucharest also have a low retail space density relative to the median wage. The capital’s District 1, the most affluent, has the highest density in the capital, with 799 square meters per 1,000 inhabitants.

Overall, Romania’s total retail space reached 4.14 million square meters this year, with 1.26 million in Bucharest alone.

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