Towns of 20,000–50,000 Inhabitants Catch Developers’ Attention
After two decades of expansion focused on major urban centers, Romania’s modern retail market is now turning toward smaller and mid-sized cities. According to a report by Colliers, communities with 20,000–50,000 inhabitants are drawing growing interest from investors, fueled by rising incomes and demand for modern shopping formats.
Romania currently has a modern retail stock of around 70 sqm per 1,000 inhabitants in towns under 100,000 people — between two and eleven times less than in Slovakia or the Czech Republic. By comparison, Slovakia exceeds 800 sqm/1,000 inhabitants, while Poland and the Czech Republic stand at roughly 500 sqm. This gap positions Romania as one of the most promising retail development markets in Central and Eastern Europe.
“We are seeing solid demand, driven by rising consumption and the interest of international brands in expanding, particularly through retail parks. These projects offer attractive yields and flexible layouts for tenants, making them a long-term winning solution. In the coming years, every city with an active local economy and a population of at least 15,000–20,000 inhabitants will become a key attraction point for this type of development,” said Simina Niculita, Director | Partner | Retail Agency Colliers.
Retail Parks Emerge as the Dominant Investment Model
The retail park format continues to gain ground across the region, preferred for its lower costs and operational flexibility compared to traditional shopping centers. In Poland, the share of such projects rose from 9% in 2015 to 22% of total modern retail stock, while in the Czech Republic and Bulgaria they have become the main retail solution for towns with fewer than 100,000 inhabitants.
Romania is in an intermediate stage — the market remains underdeveloped, yet the growth outlook is clear. In many smaller towns, retail parks are evolving into community hubs that combine shopping areas with food zones, services, and entertainment. According to Colliers’ estimates, the consistent presence of value & discount retailers such as Pepco, Lidl, Jysk, and KIK supports stable foot traffic and yields of 8–9% for prime projects.
Romanian investors are playing an increasingly important role, adopting different strategies: some build and retain assets for recurring income, while others develop projects for sale. This diversification reflects the market’s maturity and confirms the strong interest in nationwide retail expansion.
In the medium and long term, Colliers anticipates a multiplication of projects across all city categories, with a clear trend toward integrating retail, residential, office, and entertainment components.
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