Ergun, Baneasa: All malls target the same pocket

Plans to develop 20-25 malls in Bucharest are not realistic, given Bucharest inhabitants’ purchasing power, says Ali Ergun Ergen, CEO of Baneasa Developments, manager of the retail area of northern Bucharest’s Baneasa project. Ergun, 39, one of the most experienced shopping centre developers in Romania, together with businessman Iulian Dascalu, believes the worst on the retail market is not over, yet. “I’ve never believed in the option of building 20-25 malls in Bucharest. (…) More shopping centres do not mean people have more money to spend. All (mall managers i.e.) target the same pocket,” Ergen told ZF. Bucharest now has eight classical malls, another five shopping parks and an outlet-type centre. However, another around ten projects are on paper, but just a part of them would be carried out in the following years. “(…) Thinking of the construction of some projects with an area of at least 40,000 square metres, I do not believe the city can absorb more than 3-4 more projects (…)”, Ergun says.