Retail investment volume down 82% in Romania, only one shopping center scheduled for opening

The retail investment volume in Romania stood at EUR 17 million in the first three quarters of this year, according to a recent report issued by Cushman & Wakefield: What’s in store for European retail 2012? The investment volume in Romania was down 82 percent on the same period of 2010, the report found. It was among the lowest retail investment amounts in Europe, below neighbor Hungary, with EUR 122 million, and Poland, with EUR 833 million. UK led the pack, with EUR 8.5 billion in retail investments during this period, above Russia's level of EUR 2 billion. In Romania, retail investments covered 6 percent of the total investment volume. Yields in retail in the country stay between 9 and 9.25 percent, according to the report.

Retail sales in Romania grew by 3.7 percent year-on-year in 2011, after three years of continuous drops: down 9.8 percent in 2008, 5.8 percent in 2009 and a decrease of 3.8 percent in 2010. Retail warehouse rents in Romania stay at EUR 96 per sqm per year, below Poland, which stays at EUR 105 per sqm per year. In Romania, the opening of Maritimo Shopping Centre has increased supply in Constanta by more than 40 percent. Only one retail scheme should open in November: Electroputere Parc in Craiova, some 54,840 sqm. Strong retail sales growth has been recorded in parts of Eastern Europe. In Russia, retail sales have grown by a healthy 6 percent on the year to Q3 2011 as a result of improved labour market conditions and easing inflationary pressures. Simultaneously, consumer confidence continues to grow in Poland and consumer demand remains strong with private consumption growth over 3% in 2010 and into 2011. Turkish consumer spending has been fueled largely by a much improved labour market and a marked increase in access to bank lending over the past year. Retail investment markets had a busy third quarter with EUR 9.1 billion traded, 7.7 percent up on the second quarter. Activity over the first nine months of the year totaled EUR 29.7 billion, 9.8 percent higher than the same period of 2010. Corina Saceanu, corina@romania-insider.com