House of People Becomes Mall of Europe?

Europe`s largest building – House of People in Bucharest – should be transformed into a shopping, entertainment and exhibition centre according to the latest suggestions of a Romanian deputy.

The 65 000 sqm large building accommodates the Romanian Parliament as well as an Art Museum, whereby 70% of the building is not used. Therefore the Romanian deputy suggests the move of the Parliament and the transformation of the building into a hotel with shopping, entertainment and exhibition facilities. In order to build the House of People the former communist dictator Nicolae Ceasusecu ordered the destruction of 30 000 houses, 22 churches and 6 synagoges.

The existing shopping centre stock of Bucharest amounts about 550 000 sqm GLA, further 600 000 sqm are planned. Consumers can choose between 17 shopping centres bigger than 5 000 sqm. With about 80 000 sqm Sun Plaza in the South of the city belonging to the Austrian Sparkassen Immobilien AG is the largest shopping centre in Bucharest (opened 2010). Only a little smaller is the mall AFI Palace Cotroceni belonging to AFI Europe in the Western part of the city (opened 2009).

With a decrease of the private consumption expenditures of 5% the Romanian consumers noticed the crisis year 2009. In average a Romanian household has around 7 000 euro at its disposal and thus about 20% of the Austrian level. The consumption expenditures in Romania will still increase, although not in the same tempo as it was the case until now.