Shopping Centers Continue To Boom In Europe's Emerging Market

The annual figure is the highest since 1965 when Cushman & Wakefield began monitoring the introduction and growth of shopping centres in Europe. 15,000,000 sq m is more than 16 times the size of the world's largest planned shopping centre, the Mall of Arabia, Dubai.

Looking further ahead, the development pipeline figure for the 18 months from July 2008 to the end of 2009 is even larger and stands currently at 26 million sq m with the emerging European markets of Russia, Ukraine and Turkey accounting for 58 per cent of the total. Poland, Czech Republic and Hungary accounts for 25% of potential developments in 2008-09.

Viktória Szabó, Partner, Head of Retail Agency at C&W Budapest commented: The credit crisis has just started to have an effect on Hungarian Shopping Center developments. So far, only some developments' timing have been postponed, Allee Shopping Center developed by ING Real Estate is an exception. 

The handover for this complex has remained autumn 2009. Apart from the above, we believe that even if the retail sector is slower, it will continue to develop in the coming years."

Russia tops the overall ranking with 10 million sq m of space under construction between July 2008 and the end of 2009. This figure includes 14 'super-regional' schemes of more than 100,000 sq m. By contrast, development in Bulgaria has been slower than in its neighbours with just under 350,000 sq m of new space under construction. Proportionately, however, it will see a huge 400% increase over 18 months.

Figures for shopping centre floorspace that has already opened during the first half of 2008 show that Spain and Italy recorded the largest figure in Western Europe although the UK recorded the largest centre openings with three completions accounting for around 280,000 sq m. These included the 151,000 sq m Liverpool One scheme which was the largest centre to open in Europe.

Boris van Haare Heijmeijer, head of European retail services at Cushman & Wakefield, said: "New shopping centre development will continue throughout 2009 although some schemes scheduled for delivery beyond that may yet be postponed due to concerns over the strength of local economies. Central & Eastern Europe has historically been poorly served and there is considerable pent up demand from retailers and consumers in these markets. 

Even in Western Europe, the vast majority of new schemes and extensions which have begun construction will all complete with only a small number postponed because of funding issues. Most international retailers are keeping to their expansion plans and the best schemes are likely to let well."

Source: cushwake.com