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Insights | PROPERTY TIMES ROMANIA H1 2014 RETAIL MARKET
PROPERTY TIMES ROMANIA H1 2014 RETAIL MARKET
- At the end of H1 2014 Romania’s modern retail stock was off 2.787 million sq. m, 31% being located in Bucharest. Having no deliveries in the first six months of 2014, total modern retail stock remained unchanged. In Romania modern retail stock density per 1,000 inhabitants continues to be 138 sq. m and is forecasted to reach 141 sq. m by the end of the year.
- Retail sales have increased in H1 2014 by 8.6% when compared with the same period last year. This performance was boosted mainly by non-food sales, which overall have increased by 12.3% y-o-y.
- Retailers continue their expansion plans by keeping the rhythm at steady pace. With no openings recorded in H1 2014, retailers attention is towards existing schemes that have demonstrated positive performances.
- The vacancy rate is following a descendant trend both in Bucharest and regional cities, given the lack of new projects and the retailers need for expansion.
- Prime retail rent for best performing retail schemes in Bucharest is between € 60 – 70 / sq. m/month, while outside Bucharest in dominant retail projects prime retail rents range between € 20 – 25 /sq. m/month. In cities such Cluj Napoca, Timisoara, Iasi or Constanta the prime headline rents are with 25% – 35% higher.
