New Luxury Destination in Bucharest – H Știrbei Palace – Brings Together CBRE Romania and Hagag Development Europe

• Leading real estate consultancy company CBRE Romania and real estate investor-developer Hagag Development Europe sign an exclusive agreement, to put Romania on the map of luxury shopping destinations.

The luxury goods market in Romania is estimated to generate EUR 535.82 million in revenue in 2024, with a significant contribution from online sales (13.8%). Demand for luxury goods is growing, fueled by a population with a rising standard of living.[1]

In this context, CBRE Romania announces its exclusive involvement in the leasing strategy of H Știrbei Palace, an emblematic historical monument located in the heart of Bucharest and one of the most anticipated retail projects in the capital. After the completion of the renovation works, Știrbei Palace aims to become a landmark shopping gallery for luxury brands in South-Eastern Europe.

“H Știrbei Palace is the ideal project for luxury brands that want a strategic presence in Europe, in a premium location. The Romanian retail market has proven its resilience and potential in Central and Eastern Europe, with remarkable results. We aim to transform Știrbei Palace into the city’s luxury shopping destination and bring Calea Victoriei back among the world’s major shopping streets. We believe this project will make a significant contribution to the development of the luxury retail market in Romania and will 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.

“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. 

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 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 2023 revenue). The company has more than 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 transaction management and coordination, project management, design and build services, property management, investment management, valuation, property rental, strategic consulting, property sales, mortgage services, and development services. For more information, please visit www.cbre.ro or follow our LinkedIn page.

About HAGAG Development Europe

Hagag Development Europe is a 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.

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