Romania's modern retail stock, four times below European average, study shows

The stock of modern retail space in Romania, calculated per 1,000 inhabitants, stood at 64 sqm at the end of 2010, almost four times below the European average of 238 sqm, shows a study issued by DTZ Exchinox. However, an analysis made by DTZ Exchinox in the third quarter of 2010 estimated that the Romanian market can absorb 784,000 sqm of modern retail in order for the market to become saturated, taking into account the stock to date, the population income, the unemployment rate, the consumption and the main statistics of countries in the region. “If the CEE countries, with net average salary of EUR 618 - the average stock per 1,000 inhabitants is 204 sqm; in Romania, where the average net salary is about half of that recorded in comparable countries, then the level of saturation on the modern retail space market will be recorded when it reaches a 100 sqm per 1,000 inhabitants”, said Bogdan Sergentu, Head of Valuations and Consulting, DTZ Echinox. There were 120 million sqm of shopping centres in Europe at the end of 2010, in approximately 6,500 schemes. Western Europe accounts for more than 90 percent of the existing stock and Central and Eastern Europe, for only 10 percent. Western Europe is expected to see minimal new shopping centre development in 2011 and 2012. Irina Popescu, irina.popescu@romania-insider.com