Unfilled territories persist in Romania's contemporary retail landscape
Unbalanced Modern Retail Market in Romania: Developers Shift Focus to Underserved Regions
The modern retail market in Romania is experiencing an uneven distribution, with a significant disparity between the Central-West region (Transylvania and Banat) and Bucharest-Ilfov, and other regions like the East (Moldova) having less modern retail space [1][4].
This disparity is influenced by various factors, including regional economic development disparities, better infrastructure and transportation connectivity, and higher retail demand and population density in urban centers [1][3].
To address this imbalance, developers are implementing strategies to expand into underserved regions. One such strategy involves the development of regional hubs and retail centers beyond Bucharest, with investments targeting secondary and mid-sized cities like Iași, Suceava, and Ploiești [2].
Another strategy includes improving logistics and e-commerce infrastructure by creating efficient logistics hubs, warehouses, and distribution centers across Romania, especially near regional urban centers and well-connected secondary cities [2][3].
Leveraging infrastructure improvements, such as funding from the National Recovery and Resilience Plan and full Schengen accession, have improved road and rail networks, facilitating better access to previously underserved areas like Moldavia [3].
Geographic dispersion of industrial and retail development is also a key strategy, with cities close to the EU border like Timisoara and Arad, and those with industrial heritage like Brasov and Sibiu, emerging as new retail and industrial hotspots [3].
Romania’s retail density remains low (248 sqm per 1,000 inhabitants), one of the lowest in Europe, signaling large potential upside [1]. Developers are responding by increasing retail space in underserved regions to stimulate local economies and capture unmet demand.
Retail park formats, requiring lower initial investment and offering more flexible leasing structures, are expected to dominate upcoming developments in underserved areas [1]. By mid-2025, Romania's modern retail market expanded to 4.73 million square metres [1].
Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, stated that there are cities with over 50,000 inhabitants that do not have access to a modern shopping centre [1]. Several areas in Romania have medium-sized urban centres without access to modern commercial formats, and 24 counties in Romania lack any modern retail facilities such as malls, retail parks, or shopping galleries [1].
These counties without modern retail facilities include Ialomită, Teleorman, Călărași, Vaslui, and Botoșani, which are located in the south and east [1]. Modern retail density in underserved counties in Romania remains below regional averages [1].
The capital Bucharest and the Centre-West region, including Transylvania and Banat, account for over 60% of Romania's modern retail stock [1]. Developers in Romania are actively seeking to close the retail gap by targeting cities with no modern retail infrastructure [1].
Future retail projects are strongly targeting secondary and tertiary cities in Romania due to their high growth potential [1]. Changing consumer habits, improved infrastructure, and demographic stability in smaller cities are attracting increasing interest from developers in Romania [1].
The report signals a shift in strategy for the retail sector in Romania towards market expansion [1]. The imbalance in retail development in Romania is largely due to historical investment patterns favouring economically stronger and more densely populated areas [1]. The retail sector in Romania is shifting strategy, focusing on expanding into new geographic areas rather than strengthening existing retail hubs [1].
Retail consumption is projected to grow modestly in Romania [1]. The demand for retail space is likely to remain resilient in areas with limited supply, despite inflationary pressures [1].
Developers are focusing on strategy expansions to address the imbalance in Romania's retail market, particularly in underserved regions. This includes the development of retail centers beyond Bucharest, such as Iași, Suceava, and Ploiești, and improving logistics infrastructure.
With several areas in Romania lacking modern retail facilities, developers are actively targeting cities with no modern retail infrastructure, especially in counties like Ialomită, Teleorman, Călărași, Vaslui, and Botoșani, to stimulate local economies and capture unmet demand.
