Radu Lucianu: I wouldn't build another mall in Bucharest

A number of Bucharest malls have been poorly designed, with alleyways of 12-15 metres wide, unusable spaces translating into the cost of rent and ultimately in the price of products, believes Radu Lucianu, country manager of CB Richard Ellis real estate consultancy. The eight malls and seven retail parks in Bucharest currently cover demand for retail space in the capital city, in the context where the occupancy rate is low in many projects, particularly in the southern part of the city. “I would not build another mall in Bucharest for the time being. The existing ones are very big, rather empty and sell expensive products compared to stores in other European countries (…),” Lucianu says. He believes real estate developers have made a lot of mistakes, as regards both the construction of shopping centres, and of office buildings and housing projects. CB Richard Ellis is part of the group of the five or six biggest international consultants domestically, whose turnovers plummeted as a result of the overall market collapse. The firm posted 14m-euro turnover in 2007, its best year. The company’s representatives have not published any financial information since, but as far as the team of brokers and consultants is concerned, the adjustment came at around 60% – from 100 to 40 people.