Record: shopping centre space in Europe passes the 100 million m² mark

28 Nov, 2006, Frankfurt

Record: shopping centre space in Europe passes the 100 million m² mark

Over 11.4 million m² of new shopping centre developments are due to open in Europe this year and in 2007. According to the recent 'European Shopping Centre Development' study by Cushman & Wakefield (C&W), the supply of shopping centre space in Europe will pass the 100 million m² mark and reach around 107 million m² by the end of 2007.

Central and Eastern Europe are set to see the completion of developments covering the most new space but, according to Inga Schwarz, C&W researcher in Germany, "Markets in Western Europe are also seeing high levels of further development as they are being adapted to the requirements of the lessors and consumers".

Russia top of the ranking for new space

With 1.5 million m², Russia tops the table for the most new space set to be completed this year and in 2007. One of the most active developers in Russia is Swedish retailer Ikea, which is set to open five mega malls in Yekaterinburg, Nizhny Novgorod, Dybenko, Parnas in St. Petersburg and Belaya Dacha in Moscow. Poland ranks in second place with 1.3 million m² of new shopping centre developments. Schwarz states, "Nearly every large Polish city will have a modern shopping centre by the end of 2007, meaning that over the next two or three years retailers will turn their sights to the medium-sized cities. The next wave of developments in Poland's largest cities is expected from 2008 to 2010, with the planned regeneration of entire city districts. Examples include the new Galeria Baltycka shopping centre in Tricity and the renovation of the train station in Katowice."

Bulgaria, Rumania and Lithuania have the largest percentage increase

Bulgaria, Rumania and Lithuania are set to show the largest relative increase in space by the end of 2007. The supply of shopping centre space is expected to increase by 158% in Bulgaria, 153% in Rumania and 92% in Lithuania. The researcher commented, "The first shopping centre in Bulgaria only opened in 1999. Since then, the supply of shopping centre space has increased to 8.4 m² of space per 1,000 inhabitants, although this is remains way below the European average of 181.5 m² per 1,000 inhabitants. Bulgaria clearly still has a lot of catching up to do. There are enormous opportunities for international retailers and investors, especially in view of the growing consumer market in Bulgaria."

3.56% increase in space in Germany

Approximately 413,000 m² of shopping centre developments are set to be completed in Germany by the end of 2007. The original estimate was 735,000 m² but developers are being more conservative than expected. Overall, shopping centre space in Germany is set to increase by 3.56% by the end of 2007, including centres such as the Duisburg Forum and the Erlangen Arcades.

New shopping centre space in Europe by the end of 2007

Country	m² of new shopping centre space in the pipeline from July 2006 to December 2007
Russia	1,506,500
Poland	1,273,000
Italy	1,092,000
Spain	974,300
France	685,400
Netherlands	562,700
Romania	559,600
UK	554,400
Portugal	473,200
Germany	413,000
Turkey	379,400
Lithuania	374,000
Austria	276,000
Switzerland	232,800
Czech Republic	226,000
Hungary	223,500
Slovakia	218,500
Greece	186,600
Ireland	178,900
Lithuania	156,000
Croatia	151,500
Sweden	147,000
Belgium	137,500
Ukraine	109,000
Finland	100,000
Bulgaria	98,000
Slovenia	63,000
Denmark	47,000
Serbia	18,000
Malta	11,600
Estonia	0
Luxembourg	0
Norway	0
Bosnia Herzegovina	0

Total	11,428,400

Source: Cushman & Wakefield 11/2006

Percentage space increase from July 2006 to December 2007

(including space expansions)

Source: Cushman & Wakefield 11/2006

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