What to expect from investing in shopping centers?

What to expect from investing in shopping centers?Retail is one of the sectors that benefits from both foreign and local investors. The situation is shown as still improving driven by a rising demand, based on the diversification of customer needs and behaviours and rises in income due to higher wages.

It is estimated that retail sales will increase in Romania in the next five years, with a rate between 6.1% and 6.2% per year. Studies on the market show that even if the Romanian economy is volatile, the government has made good progress in terms of the tax system and the budget deficit in the previous years.

The unemployment rate is eelatively low, 7.4%, and the density of shopping centers is among the lowest compared to other markets (84 mp/1.000 inhabitants), offering good development opportunities.At the same time,the yield on the market of shopping centers in Bucharest is 8.75%, the largest of markets, after Dublin, this being a very strong reason to consider investing in shopping centers in Bucharest , the only thing remaining is  to search for the right offer.

Provided that thare are a great number of positive reasoms to do so, a little help is always welcomed so you should start your search on: http://businesses-properties.com/shopping-center-on-sale-in-bucharest-romania/.

As mentioned above, the trend is that foreign businessmen to invest in raising commercial centers  and not only, they also invest in buying or improving those already for sale. Experts say that the fashion began to change and both people living in  Bucharest and businessmen have turned their attention to malls.

At first, it was trendy  to have a retail store on Calea Victoriei, but the high rent and traffic began to discourage investors. Now, whether we are talking about people,or capital investors, the trend is the same. The city dwellers want a place where they can buy everything they need, from clothing to food, and be able to relax and have fun in specially designated areas.

On the other hand,an investment even in the volatile market of Romania, when there are funds available, can bring the jackpot, because materials and workforce  are much cheaper. Anyway shopping centers in Romania should have an average increase in sales of around 3.5% this year. We will not see the same trend in all shopping centers, but those in Bucharest and in other big cities will be the main beneficiaries of this growth.

A more marked advance it is estimated on the food commodities, so supermarkets and hypermarkets will attract more customers, which will be good for the shopping centers in which they are located. Thus sales of non-food commodities  and services is expected to grow. On the cinema and leisure aspects, sales will remain constant.

To the increase of sales in shopping centers will contribute, on the one hand, the wages, an estimated advance of 2.6% and on the other hand  the dropping of prices, which in 2013 ranged between 1 and 8%. Romanians will have more money in their pockets, so they will spend more, a good news for retailers and shopping centers.

However,among factors that could have a negative impact on the retail market and consumption include fuel price increase, the budget tax collection and political instability.

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