Deliveries of new retail projects in Romania more than tripled in the first half of 2024 compared to the same period last year, signalling a revival of investment interest in metropolitan and regional malls, according to Colliers' latest real estate market report. 

This positive momentum is being fuelled by recovering consumer confidence, with wages and employment levels once again outpacing inflation after years of economic strain, according to the real estate company. 

"Consumer confidence is approaching pre-pandemic highs," said Liana Dumitru, director of retail agency at Colliers, noting that Eurostat's Consumer Confidence Index in June 2023 surpassed its historical average, a clear indicator of renewed market optimism.

In total, around 106,000 square metres of retail space were added during the first six months of 2024, with another 250,000 square metres under construction.

This surge follows years where new supply was dominated by retail parks in smaller towns, marking a shift towards larger-scale projects. "It is a dynamic period for the retail market, with a considerable number of projects in various stages of development," said Dumitru. "By the end of 2024, the stock of projects could exceed 4.6mn square metres."

The most notable openings in 2024 included Argeș Mall in Pitești, covering 51,400 square metres, and Aurora Mall in Giurgiu, at 13,500 square metres. Both projects highlight the increasingly balanced distribution of retail developments across the country and a growing share of local investment capital compared to foreign funds.

Retailers, particularly in the food sector, have also benefitted from this improved climate. Discount and mass-market brands remain particularly attractive as households adjust their spending in light of recent inflationary pressures. Polish chain Żabka is among those expanding aggressively, planning to establish a presence with its Froo concept in the coming months.

Colliers predicts that Romania's retail market could surpass 5mn square metres by the end of 2026, driven by continued expansion projects such as the 62,000 square metre addition to the Mall of Moldova in Iași. 

"We are seeing increasing interest from developers in large-scale mall or mixed-use projects," said Simina Niculita, director and partner of retail agency at Colliers. However, she cautioned that while Romania's market remains undersupplied in many segments compared to other European nations, external crises and inflationary trends could temper growth.