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The development activity on the shopping centres market has slowed lately, as a result of the delays in obtaining construction permits, but also due to a limited number of active developers and a decreasing number of opportunities to build dominant schemes across the main cities.

Only one shopping center was delivered in the first 6 months of this year, respectively the 11,000 sq m GLA gallery at the ground floor and mezzanine of Platinia residential complex in Cluj Napoca.

The modern shopping center stock has reached a total of 3,152,215 sq m GLA nationwide, corresponding to a shopping centers density of 159 sq m / 1,000 inhabitants. Most of the major cities have average densities of 250-550 sq m / 1,000 inhabitants, with only 7 cities having superior ratio (Suceava, Oradea, Deva, Constanta, Pitesti, Bacau, Arad).

The stock under construction is 55,700 sq m GLA, including the new Shopping City Ramnicu Valcea and two extensions (AFI Palace Cotroceni, Shopping City Galati), all having delivery for this year. Another extension to Ploiesti Shopping City is also announced for this year, while the extension of Shopping City Sibiu with one more level has a low probability to be finished this year.

If all of these projects will be delivered on time, the new stock of 2017 will reach 72,900 sq m GLA, representing a 65% decrease as compared with the openings of last year (212,780 sq m GLA).  

Development activity is expected to grow again from 2018-2019, with potential to witness over 285,000 sq m GLA of new openings, to include new dominant centers in Brasov, Sibiu, Targu Mures and Satu Mare, together with extensions in Bucharest, Timisoara and Sibiu. Other projects are expected to be launched in the next period by developers such as Immochan and Prime Kapital.

Most ongoing projects today are extensions of existing shopping centers. Given that the dominant schemes are almost completely occupied (<2% vacancy rate) and demand is high, some of the owners are preparing extensions to accommodate new retailers, especially international anchors. Seven new extensions to existing schemes in Bucharest, Timisoara, Sibiu, Ploiesti and Galati are currently in various stages of development.

NEPI remains the most active developer on the local market, being responsible for the construction of 75% of the new shopping centre stock announced for 2017. The company has 3 new shopping centers and 4 extensions under development for 2017-2019, cumulating a total area of 178,400 sq m GLA.

 

SHOPPING CENTERS MARKET - STATISTICAL DATA

EXISTING STOCK:                                            3,152,215 sq m GLA

NEW STOCK DELIVERED IN H1 2017:       11,000 sq m GLA

STOCK UNDER CONSTRUCTION:              55,700 sq m GLA

TOTAL STOCK ANNOUNCED FOR 2017: 72,900 sq m GLA (delivered+under construction+projects)

The main shopping centre projects under development in Romania are listed in the table below:

Shopping Center

City

Type

GLA (sq m)

Status

Year

Platinia

Cluj-Napoca

New

11.000

Delivered

2017

Shopping City

Ramnicu Valcea

New

27.900

Under construction

2017

Shopping City

Galati

Extension

21.000

Under construction

2017

AFI Palace Cotroceni

Bucharest

Extension

6.800

Under construction

2017

Shopping City

Ploiesti

Extention

6.200

Project

2017

Shopping City

Sibiu

Extension

10.600

Project

2017 / 2018

Colosseum

Bucharest

Extension

15.500

Project

2018

Shopping City

Satu Mare

New

28.700

Project

2018

Iulius Mall

Timisoara

Extension

60.500

Project

2018 / 2019

Shopping City

Targu Mures

New

50.000

Project

2018

AFI Palace Brasov

Brasov

New

45.000

Project

2018 / 2019

Festival Mall

Sibiu

New

42.000

Project

2019

Promenada Mall

Bucharest

Extension

34.000

Project

2019

Sursa: ACTIV Property Services