By the simple scrutiny of the number of luxury cars and villas, most of the companies who paid any interest at all in the Romanian market concluded that it has great potential. As analysts say, what Bucharest lacks so far is a destination for luxury. Bucharest doesn’t have a Fifth Avenue, neither a Bond Street nor a Montaigne Avenue.

The prime retail avenues in Bucharest are concentrated on 2 Boulevards: Calea Victoriei and Magheru-Bratianu. The latter is especially well positioned in terms of traffic as it runs as a North-South axis between two very crowded squares: Roman Square and Union Square. Currently, Magheru – Bratianu Bvd is the top rent high-street location, because of high traffic, both pedestrian and automotive, as well as the tenant mix but it is lacking parking spaces.

Retail areas such as Calea Dorobanti or Calea Victoriei with average rents of 130 euro/sqm/month do not fit the requirements of luxury companies neither in terms of privacy and exclusivity nor as accessibility, parking, visibility, fashionable vicinity is concerned.

There are only 5 commercial centers in Bucharest: Unirea Shopping Center, Bucharest Mall, Plaza Romania, City Mall and Jollie Ville. Other projects in the pipeline which are being developed: Colosseum, Cotroceni Park, Baneasa Business Center, Bucharest Plaza, Liberty Mall, Esplanada.

Bucharest historical center is cut in two by Bratianu Avenue and is being reconstructed today in keeping with the old fashion architecture. It will become the location that can attract high end brands and tourists. A Luxury Department Store close to the historical center seems to be the only way for Bucharest to become a reference point in the international luxury industry, according to many luxury retailers.

Romania is the second largest market in Central and Eastern Europe with 22 millions consumers and a new member the European Union since 2007.

Romanian born billionaires listed in Forbes doubled in last 2 years, luxury car sales growth has double digit figures, luxury real estate reached Older Europe pricing, and last, but not least, Romanians Latin driven appetite for status and high-end brands is fuelled by the real estate boom which created a new social class of estate owners with net worth between 1 and 3 million euros.

Over 130000 registered entrepreneurs earn over 4000 euro per month.

Romanian GDP registered steady growth rates, with the highest value of 8.4% in 2004, and 7.7% in 2007.

Total foreign direct investments in Romania reached EUR 30.9 billion at the end of 2006, and a record high of EUR 9 billion in 2007. Romania has over 18 million mobile subscribers.

Romania has implemented most European Union Directives that protects copyrights. An important issue for luxury brands is the Copyright Law enforcement, and a strong argument for Romania is that Louis Vuitton, Gucci were involved in several civil and criminal lawsuits since 2003 against counterfeiting practices and due to justice reform they started to win the most important cases.

Bucharest,, once known as “Little Paris”, has over 2 million inhabitants and while Romanian GDP/capita is estimated at 8000 euros, in Bucharest GDP/capital is estimated over 12000 euros. European Regional Growth Index (E-REGI) published annually by Jones Lang LaSalle put Bucharest as expected to produce the highest output growth ever in next 5 years. In 2007 Bucharest ranks 25 from top 91 European cities based on E-REGI up by 33 positions since 2006 entrance in the top.

Nowadays the commercial centers total GLA is low by comparison to other European cities: currently Bucharest has just 0.08 sqm/capital retail space whereas Warsaw has 0.83 sqm/capita. Bucharest accounts for over 30% of the total retail turnover of Romania High end brands are being commercialized especially in hotels’ retail areas, targeting the tourists rather than the general public. The prime retail area in Bucharest counts approximately 45,000 sqm of space.

International fashion retailers:

LVMH, Zara, Marks & Spencer, Debenhams, Promod, Mango, Intersport, Kenvelo, Nike, Terranova, Esprit, Puma, Diesel, Lacoste, Tommy Hilfiger, Peek & Cloppenburg.

Cocor will bring a fresh supply on the retail market in fall 2009 earmarked to luxury brands with high chances to shift the location perceptions. On this still transitional market, Cocor Luxury Store has the opportunity to become a leader on the high-end brand market and shift the interest of brands to the historical center of Bucharest. Despite the recent market turmoil, our project become stronger in October 2008, with the 22 mil euros credit investment committed by BCR the largest Romanian bank part of Erste Group.