The commercial space in some Romanian cities, such as Ploiesti and Pitesti, both close to Bucharest, exceeds by five times the European average in terms of commercial areas per 1,000 inhabitants, if planned investments in malls are finalized, according to UniCredit Tiriac Bank’s Real Estate Manager, Antonela Marchievici.
Projects in those cities would boost commercial space to 1,000 square meters per 1,000 inhabitants, which is worrisome, Marchievici told the Business Standard daily on May 23.
More than 140 retail project to be delivered by 2010 and totaling four million sqm in rentable space have been announced countrywide, according to CB Richard Ellis-Eurisko’s Retail Department Manager, Luiza Moraru. Of those, 20 projects are in Bucharest, and the remainder in other major cities. However, Moraru said that many of these projects would not be finalized.
In Bucharest, commercial space will increase to 1.2 million sqm, or 528 sqm per 1,000 inhabitants, according to a study by UniCredit Tiriac Bank.
Developers are aware of the fierce competition and are yet to decide whether some of their projects will be finalized. "We have discussed with financers and considered competition, but have not yet decided whether to begin work in (the city of) Arad," said Property Director of Irish developer Mivan, John Houghton.
The company plans to build a mall in the city with 170,000 inhabitants, where seven projects, totaling 200,000 sqm, have recently been announced.