www.business-review.eu Business Review | December 2021
6 REAL ESTATE
Real estate market sees modest activity in first nine months of 2021 Development activity on the Romanian retail market was modest in the first nine months of 2021, with only three small projects delivered, but this year also saw new retailers and developers entering the market, according to real estate consulting firm Cushman & Wakefield Echinox. By Aurel Constantin grow their presence in Romania. Prime rents remain stable for the moment, even if the 90-day suspension of operations during the Rental levels in retail parks remained essentially flat
I
state of emergency from March to June 2020 had a strong impact on a number of tenants, which resulted in renegotiations that slightly
n total, new commercial spaces with a
Dusseldorf group, opened their first Central
cumulative area of about 31,000 square
and Eastern Europe store in Bucharest.
metres were delivered until the end of
Access to cinemas and indoor F&B units is
remained essentially flat, as these types of
September throughout the country, as the
only allowed for customers who present the
assets continued to produce positive results
modern retail stock in Romania reached 4.04
Digital Covid Certificate, as new restrictions
in spite of the governmental restrictions. The
million sqm, reflecting an average density of
were imposed in Q4 to mitigate the effects of
headline rent achieved for 100 sqm units in
209 sqm per 1,000 inhabitants.
the most challenging wave of the pandemic in
dominant shopping centres in Bucharest was
Romania so far.
of around EUR 75/sqm/month at the end of
Only one new retail scheme was delivered
decreased headline rents in several locations. However, rental levels in retail parks
Q3 2021, while in secondary cities, such as
in Q3 2021, namely Funshop Park Rosiorii de Vede (6,500 sqm GLA), the first retail park
NEW SCHEMES OR EXTENSIONS
Cluj-Napoca, Timisoara, Iasi or Constanta,
developed by the Polish group Scallier in
New schemes or extensions to existing proj-
headline rents in dominant shopping centres
Romania.
ects totalling around 120,000 sqm are under
ranged between EUR 40-50/sqm/month. In
construction and expected to be delivered by
tertiary cities, the level falls between EUR 27-
launched in H1 2021: Sepsi Value Center, with
the end of 2022, while other important proj-
32/sqm/month.
16,300 sqm GLA developed by Prime Kapital
ects amounting to more than 460,000 sqm
and MAS Real Estate, and the first phase of
are in different planning stages.
In addition, two other retail schemes were
“In line with our predictions at the beginning of the year, retail development
The most significant projects under
has slowed down in 2021, with developers
construction are the Prahova Value Centre
adapting their expansion strategies to the
in Ploiesti, the extension of Colosseum Mall
current market conditions. However, there
names entering the market during first nine
in Bucharest or the Barlad Value Centre in
are developers such as Scallier, Prime Kapital
months of the year. Cosmetics retailer My-K
the Moldova region. In terms of developers,
or Mitiska who have been betting on Romania
opened their first physical store in Timisoara,
Prime Kapital (in a joint venture with MAS
even during this period. The covid-19 crisis
while Anson’s, a multi-brand men's clothing
Real Estate), Scallier, and Mitiska still have
came at a time when developers on the retail
company, member of the Peek & Cloppenburg
the most consistent pipelines, all aiming to
market were in the process of shifting their
Fashion House Pallady, with 8,500 sqm GLA, owned by Liebrecht & Wood. On the other hand, we have also seen new
