Bucharest's retail market to increase by 100,000 sqm
The stock of modern shopping centres in Bucharest will increase by 100,000 sqm by the end of the year through the delivery of two projects in the eastern part of the capital. In addition to this area, Colliers International estimates that there is room in the capital for another large shopping centre.
With the delivery of the ParkLake Plaza shopping centre, the current stock of modern retail space in Bucharest will increase from 1.06 million sqm to 1.13 million sqm, which means that the stock of shopping centres per thousand inhabitants in the metropolitan area will reach about 452 sqm, being still well behind the average of large cities in the region. By the end of the year, in Bucharest, there is also to be delivered the Veranda Mall shopping centre, located in the Bucur Obor area.
“Based on internal calculations of Colliers, taking into account changes in purchasing power and pace of consumption growth in the coming years, we estimate that the market will absorb in the years to come around 200,000 sqm leasable area, out of which the shopping centres announced for delivery in Bucharest this year add up to roughly 100,000 sqm”, said Liana Dumitru, Associate Director in the Retail Department of Colliers International. „Thus, we consider that outside the projects delivered this year, in Bucharest there is room for another large shopping centre,” added Liana Dumitru.
The delivery of the new mall Plaza ParkLake will put pressure on the eastern part of Bucharest, where less than 18 months ago came another large shopping centre, Mega Mall. The eastern part of Bucharest will be covered by the end of the year by four modern shopping centres, Mega Mall, ParkLake Plaza, Bucharest Mall and Mall Veranda, located within a radius of five to six kilometres.
“It is difficult to estimate the impact that the new deliveries announced this year will have on existing projects, but certainly the mode of operation, flexibility and adaptability to consumer needs, as well as the constant communication with the consumer, will be decisive for the long-term success of each shopping centre. Also, the new concepts of shopping and entertainment that every centre will offer to their consumers can enhance the appeal of each project, the extent of the visits and consumer preference in favour of one or another shopping centre,” concluded Liana Dumitru.
Regarding the evolution of basic rents on short-term, we do not expect major changes, although the delivery of a new large project can influence the performance of retailers, especially of those already present in the existing centres in the east of the capital, which will implicitly reflect the percentage rent.
According to Colliers International, the majority of international retailers present on the Romanian market recorded, in 2015, increases between 10-20 percent of sales volumes, and we expect this trend to continue in 2016.