Saturday, 24 May 2025
The Romanian retail real estate market recorded a sharp increase in activity in April and May, with approximately 150,000 sq m of new retail space delivered during these two months. This represents 80% of the total retail space expected to be completed throughout 2024, according to data published by real estate consultancy Cushman & Wakefield Echinox.
The most notable delivery was Mall Moldova in Iași, a super-regional shopping centre that significantly contributed to the volume of newly completed retail space. There were no new retail project completions in the first quarter of the year, making the April–May period particularly active.
Following these developments, Romania’s modern retail stock has reached 4.7 million sq m, equating to a density of 250 sq m per 1,000 inhabitants. Despite recent growth, this remains one of the lowest ratios in both the European Union and the broader Central and Eastern Europe (CEE) region.
Looking ahead, developers have announced plans for more than 600,000 sq m of additional gross leasable area (GLA) to be delivered by the end of the decade. These projects aim to address the continued demand for modern retail formats and evolving consumer expectations.
Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, highlighted that Romania’s retail market still holds substantial potential for growth. She noted that retail density remains below the European average in many Romanian cities, offering opportunities for new development. Radoveneanu added that future projects are expected to include mixed-use concepts and entertainment components, reflecting a broader shift in consumer preferences.
“The integration of digital technologies and the blending of online and offline retail channels are becoming crucial in the current market environment,” said Radoveneanu. “These elements are increasingly viewed as key differentiators in a competitive commercial landscape. At the same time, the steady increase in retail sales—especially in the non-food segment—encourages investor confidence, despite a volatile economic backdrop.”
Retail sales in Romania rose by 3.5% in the first quarter of 2025, driven primarily by a 7.8% increase in non-food product sales. By contrast, sales of food, beverages, and tobacco fell by 2% during the same period. According to Moody’s, retail sales in Romania are projected to grow at an average annual rate of 3% through 2030—significantly higher than the 1% forecast for the Eurozone.
Investor interest in the Romanian retail segment remains strong. Retail assets accounted for over €110 million in transactions during the first quarter of 2025, comprising more than 64% of total real estate investment volume for the period. All of the recorded transactions involved properties located outside the capital, Bucharest.
Rental levels for retail space remained stable in the first quarter. Prime rents in dominant shopping centres in Bucharest held steady at around €90 per sq m per month for ground-floor units between 100 and 200 sq m. High street retail rents were similarly unchanged, averaging €60 per sq m per month. In regional cities such as Cluj-Napoca, Timișoara, Iași, and Constanța, rents for comparable spaces ranged between €50 and €65 per sq m per month.
As Romania continues to attract retail development and investment, market fundamentals appear to support sustained growth. With modern retail density still below European benchmarks and positive retail sales trends in place, developers and investors are expected to remain active in both primary and secondary locations across the country.
