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Real Estate: Developers remain focused on regional cities for new projects or extensions of existing ones
The total modern retail stock, which includes both retail parks and shopping centres, has reached approximately 3.7 mln. sq. m in the first half of 2019 and around 130,600 sq. m are expected to be brought on the market by the end of the year, according to the latest research report “Romania MarketView H1” of CBRE, the global and national real estate market leader.
The great majority of the retail stock is spread nationwide while Bucharest has a share of 31%. The most encountered retail format on the Romanian market, shopping centres are on top with 61% from the total analysed surface.
A new supply of approximately 67,000 sq. m. was added to the modern retail stock in the first half of 2019 due to the largest scheme delivered during the second quarter, meaning the extension of Iulius Town project developed by Iulius Group in Timisoara (47,000 sq. m.). Several extensions of established and well performing shopping centres and a new small-sized retail park delivered in Drobeta Turnu Severin top off the new market additions.
“Developer’s focus on secondary and tertiary cities, a trend highlighted since last year, could also be observed in H1 2019, as the extension of Veranda Mall with approx. 6,000 sq m was the single project delivered in the capital city. The strong competition between the existing shopping centres in Bucharest encourage developers to extend their retail investments in the regional cities with developments on small sizes but with potential of extension. However, there is still room for new retail projects in Bucharest”, explained Carmen Ravon, Head of Advisory and Transaction Retail, CBRE Romania.