Bucharest's Newest Luxury Destination - H Știrbei Palace by HAGAG Development Europe - is set to place Romania on the Map of Luxury Shopping Destinations

Rhea-AI Summary

HAGAG Development Europe and CBRE Romania have signed an exclusive agreement to position Bucharest's H Știrbei Palace as a premier luxury shopping destination. The luxury goods market in Romania is projected to generate EUR 535.82 million in 2024, with a notable 13.8% from online sales. H Știrbei Palace, a historical monument on Calea Victoriei, is undergoing extensive renovations to become a luxury shopping gallery by mid-2025. CBRE Romania aims to attract high-end retailers, contributing to the city's development as a key shopping hub. The collaboration highlights the growing potential of Romania's retail sector, bolstered by new real estate projects and rising prime rents.

Positive

• Projected revenue of EUR 535.82 million for Romania's luxury goods market in 2024.
• H Știrbei Palace to become a luxury shopping hub by mid-2025.
• Signing of an exclusive leasing agreement with CBRE Romania.
• Rising demand for luxury goods in Romania.
• Increase in prime rents for high-street locations in Q1 2024.
• 13 new five-star hotels planned by 2028 in Bucharest.

Negative

• Potential risks associated with the ongoing renovations and timely completion of H Știrbei Palace.
• Uncertainty in the market response to the luxury retail project.

News Market Reaction

-1.08%

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-1.08% News Effect

On the day this news was published, CBRE declined 1.08%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BUCHAREST, Romania, June 25, 2024 /PRNewswire/ -- Real estate investor-developer HAGAG Development Europe (TASE: HGGE) and leading real estate consulting agency CBRE Romania have recently signed an exclusive agreement destined to place Romania on the map of luxury shopping destinations.

Romania's luxury goods market is estimated to generate revenues of EUR 535.82 million in 2024, with a significant contribution from online sales (13.8%). The demand for luxury goods is on the rise, fuelled by an increasingly wealthier[1] population.

In this context, HAGAG Development Europe is delighted to announce the exclusive involvement of CBRE Romania in the leasing strategy of H Știrbei Palace - a class A, iconic, historical monument located in the heart of Bucharest on the emblematic Calea Victoriei, with extraordinary visibility and exposure, and one of the most anticipated retail projects in Romania's capital city.

"We are delighted to join forces with CBRE, whose outstanding reputation and track record in the real estate realm speaks for itself. This partnership reiterates our commitment to place Romania on the map of luxury shopping destinations and validates the enormous potential of H Știrbei Palace, while marking an important step in our strategy to attract exclusive brands and offer customers a unique shopping experience.", said Ana-Maria Nemțanu, Leasing Director at Hagag Development Europe. 

With an impressive history of about 200 years and a unique architectural presence, the former protocol royal residence of Prince Barbu Știrbei is currently undergoing comprehensive restoration, consolidation, renovation works, and will be facing the world again by mid-2025. Once completed, H Știrbei Palace aims to become a flagship shopping gallery for luxury brands in the Southeast European region.

"H Știrbei Palace is the ideal project for luxury brands seeking a strategic presence in Europe, in a premium location. Romania's retail market has proven its resilience and potential in Central and Eastern Europe, with remarkable results. Our goal is to transform Știrbei Palace into the city's luxury shopping destination, bringing Calea Victoriei back to the world's most important commercial arteries. We believe this project will significantly contribute to the development of the luxury retail market in Romania and strengthen Bucharest's position as a top shopping destination," said Carmen Ravon, Head of Retail Occupiers CEE at CBRE Romania.

In this mandate, CBRE Romania is focused on attracting premium and luxury retailers, responding to significant demand from this segment. The increased interest shown in recent discussions confirms the robust potential of the Romanian market.

Optimistic Prospects for the Luxury Market in Romania 

The luxury retail market in Romania is on a continuous rise, with Bucharest becoming an increasingly attractive destination for premium brands. This trend is fuelled by the development of prestigious real estate projects, including 13 new five-star hotels planned by 2028, which will host brands such as Corinthia, Mondrian, Hyatt, and Kempinski.

According to a market report published by CBRE Romania, there was an increase in prime rents for high-street locations in the first quarter of 2024, reflecting the dynamism of this segment.

About Hagag Europe Development ZF Ltd (HAGAG Development Europe)

Hagag Europe Development ZF Ltd. (TASE:HGGE), communicating under the commercial brand Hagag Development Europe, is an international real estate investor-developer specialized in the development of residential and commercial projects in Romania, traded on the Tel-Aviv Stock Exchange. The company is involved in the purchase, development, renovation, marketing, and management of several assets located in both privileged locations and emerging areas across Bucharest, and is the first player on the local market that has been placing significant investments into developing and growing the niche segment of urban renewal through the reconversion of old, historical buildings with unique architectural presence. For more info, please visit www.hagageurope.com or our LinkedIn page Hagag Development Europe.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. In Romania, CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction, and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. For more info, please visit https://www.cbre.ro/ or our LinkedIn page CBRE Romania.

[1] https://www.statista.com/outlook/cmo/luxury-goods/romania

Photo - https://mma.prnewswire.com/media/2444153/HAGAG.jpg

 

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SOURCE HAGAG Development Europe

FAQ

What is the projected revenue for Romania's luxury goods market in 2024?

Romania's luxury goods market is estimated to generate EUR 535.82 million in 2024.

When is H Știrbei Palace expected to open as a luxury shopping gallery?

H Știrbei Palace is expected to open as a luxury shopping gallery by mid-2025.

What role does CBRE Romania play in the H Știrbei Palace project?

CBRE Romania is responsible for the leasing strategy and attracting premium and luxury retailers to H Știrbei Palace.

What is the significance of the CBRE Romania and HAGAG Development Europe partnership?

The partnership aims to position H Știrbei Palace as a premier luxury shopping destination and enhance Bucharest's status as a top shopping hub.

How much of Romania's luxury goods market revenue is expected to come from online sales?

13.8% of Romania's luxury goods market revenue in 2024 is expected to come from online sales.

What trend is identified in Romania's retail market for Q1 2024?

There was an increase in prime rents for high-street locations in Q1 2024, indicating a dynamic retail market.