Europe expects 20% increase in shopping centre space in 2008 and 2009
30 May, 2008, Europe
The current shopping centre development boom across Europe is set to continue, with more than 22 million square metres (sq m) of new shopping centre schemes expected to open this year and next, according to the latest European Shopping Centres Report by global real estate consultant Cushman & Wakefield.
At the top of a 34-strong country ranking of pipeline shopping centre space, excluding extensions, due to open in 2008 and 2009, comes Russia with 3.2 million sq m, followed by Ukraine, Spain, Romania and Poland.
Last year saw 8.2 million sq m of new space completed across Europe in a total of 320 new centres and 54 extensions to existing centres. Just over 11 million sq m are expected to open this year, and equally in 2009, to bring the total amount of shopping centre space in Europe to 134 million sq m by the end of 2009 – up from the current figure of almost 112 million sq m.
Boris van Haare Heijmeijer, Head of European Retail Services of Cushman & Wakefield, says: “The current boom in shopping centre development is set to continue into 2009, with an additional 20% of new space due to come onto the market this year and next. Much of this development is in Central & Eastern Europe, where supplies of modern retail space are starting from a very low base, while in the more mature markets shopping centres are continuing to play a key part in city-centre regeneration.”
Regarding the affect of the credit crunch on shopping centre development, Boris says: “A small number of schemes in the UK have been postponed because of funding or pricing issues, but apart from this there is little evidence at present across the rest of Europe that the credit crunch is affecting development pipelines.”
As well as having the highest level of pipeline space, Russia also tops the amount of new space opening in 2007, with more than 1.84 sq m of new space opened, boosting provision by 26%.
Konstantin Sakharov, Head of Retail of Cushman & Wakefield Stiles & Riabokobylko, the Russian operations of Cushman & Wakefield, says: “In the coming years we expect to see the further fine-tuning of the retail sector in Moscow, and the more rapid development of shopping centres in Russia’s cities with a population of less than 300,000. The Russian retail real estate market has gone through immense changes over last few years, with consumers becoming increasingly discerning.”
Regarding Ukraine, Konstantin continues: “Ukraine is a few years behind Russia, but is now on the brink of change. Old formats still heavily dominate the market but we will soon see new landmark projects that will significantly change consumption patterns. Many retail operators are set to enter the market from Russia, although a high percentage of local formats will continue to have a strong presence in the local market at least in the short to medium term.”
For further information or a copy of the report please contact:
Chris Bond on 07793 808 006
or (after Friday 30th May) Georgina Power
Tel: +44 (0)20 7152 5739/+ 44 (0)7793 808 739
Visit Cushman & Wakefield’s Knowledge Center at www.cushmanwakefield.com to access this and other reports on leading real estate issues, trends and market statistics from around the world.
Notes to Editors:
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