Banks, pharmacies and casinos double rents on Bucharest’s two main boulevards

Although the respective areas were formerly occupied by food and clothing retailers, representatives of real estate advisory companies have indicated that some of these were forced out by high rents. The stock of rental space along main commercial boulevards is some 50,000 square meters, below market demand.

Banks started to expand in central areas as of 2004. Pharmacies and casinos followed. “Many shops gave way to banks because they could not afford the rents. Banks increased rents by 50 to 100 percent,” according to Andrei Vacaru, Senior Consultant for Jones Lang LaSalle real estate advisory company. Among companies that closed shops in these areas are cosmetics chain The Body Shop and the Lancel accessory store. Calea Victoriei has a long-time tradition for luxury brands, with names such as Escada, Max Mara, Ermenegildo Zegna or Blumarine.

Banks are interested in these areas due to high visibility. “Presence on these boulevards lends image and profit. Magheru and Calea Victoriei are the only prestigious areas in Bucharest,” said General Manager of cosmetics company Madison Rand Promotions, Madeleine Florescu.