JLL: Romania sees revival of development and retail expansion

Romania’s economy has shown slight improvements and several factors such as growing retail sales, increasing spending power and GDP forecasts are positive signs for all market stakeholders. After a year and a half of stagnation, the retail market in Romania is seeing a resurgence of development and retailer expansion, according to the ‘Retail Barometer across CEE and SEE’ report conducted by Jones Lang LaSalle (JLL). Retail supply area in the Central and Eastern European region is set to grow by a further 2.5 million sqm by end-2013, by when the 45 new retail centers scheduled for completion 2012 alone will be operational. “This implies that a number of prime, institutional quality assets will be added to the current retail provision. Nearly half of this supply pipeline will be in Poland, followed by Romania, Serbia and Croatia," shows the report. Moreover, Romania might be ranking as “hot” when it comes to bringing international chains to its market. “Interestingly, Poland and Romania have a wider choice between international and national retailers, while smaller countries, such as Serbia, Hungary, Croatia and the Czech Republic, remain dependent on international brands,” says Beatrice Mouton, Jones Lang LaSalle’s Head of Retail in the CEE & SEE region. At present about 423,000 sqm in 14 projects are in various stages of development in Romania with delivery planned up until 2013. Some 277,000 sqm are due to arrive on the market this year. This represents 170 percent of the stock delivered in 2010, according to the JLL report. The main projects in Romania this year include the Electroputere mall in Craiova, Maritimo Shopping Center in Constanta and the Colosseum Retail Park in Bucharest. “Bucharest remains the favorite destination for retailers who are interested in entering the Romanian market and those already present. The fact that this fall we are seeing a significant number of shopping centers opening is clear evidence of increasing interest in continuing developments in Romania. There are large cities that still have development potential, such as Galati, Brasov and Ploiesti, which have already announced commercial center openings for years to come,” says Roxana Stanciulescu, Head of Retail Agency at Jones Lang LaSalle in Romania. Some of the brands that entered Romanian market this year were H&M- in spring 2011, followed by MAC, Calzedonia, Pandora, New Look, Leroy Merlin and Lidl. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)