European Shopping Centre Development Report

2 Octombrie 2011

CUSHMAN & WAKEFIELD ROMANIA S.R.L.

 

Overview

More than 2.1 million sq.m of new shopping centre space opened in Europe in the first half, increasing floorspace by 1.6%. The completion total is 32% lower than the figure recorded in the previous six months, but only 5% lower than the corresponding period of 2010, when just over 2.2 million sq.m of new space was added to the market. On 1 July 2011, average shopping centre provision per 1,000 inhabitants in the EU-27 stood at 240.3sq.m. In line with the trend observed in previous years, Central and Eastern Europe account for 58% of the new space opened in the first half. This is mainly due to strong development levels in Russia, Turkey and Poland.

The largest scheme completed in the first six months of 2011 was Marmara Forum in Istanbul (156,000sq.m). Developed by Multi Development Turkey, it opened on 31 March and is now the second-largest shopping centre in the country. Two other centres with GLA above 100,000sq.m were completed in the first half: the Marineda City mixed retail scheme in A Coruña, comprising 116,500sq.m of shopping centre space, and the 114,000sq.m AFIMALL City in Moscow.

 

Key trends across Europe

Russia recorded the highest development total of all the markets covered and accounts for nearly a fifth of the new space opened in Europe in the first half. Just over 400,000sq.m of shopping space was completed, increasing floorspace by 3.6%. With the opening of AFIMALL City and two other, smaller shopping centres, Moscow accounts for 36% of the new GLA added to the market. Major projects were also completed in Novosibirsk, Yaroslavl, Kazan and St. Petersburg.

Nearly 340,000sq.m of new space opened in Turkey, increasing floorspace by 6.4%. Istanbul accounts for 62% of this total following the completion of Marmara Forum and two smaller schemes. Shopping centres with GLA ranging from 30,000sq.m to 50,000sq.m were also opened in Antalya, Denizli and Gayantep. However, provision per capita in the major cities, including Istanbul and Ankara, is still well below the European average.

Poland saw nearly 250,000sq.m of space added to the market across twelve new schemes and two extensions (compared with Russia's eight new centres and Turkey's six), increasing floorspace by 3.5%. The largest increase in provision was recorded in Radom with the opening of the 42,000sq.m Galeria Słoneczna in April. In recent years, the focus of development activity has shifted away from the capital and towards other major urban centres.

Greece, Serbia and Croatia all saw significant increases in floorspace in the first half, with provision increasing by 6-9%. The 6% increase in Greece can largely be attributed to the completion of River Mall in Athens (20,000sq.m); otherwise, development activity has come to a virtual standstill, with only one other small scheme opened in the first half and only one minor project in the pipeline for H2 2011/12.

Nine countries – Austria, Bosnia and Herzegovina, Bulgaria, the Czech Republic, Denmark, Estonia, Hungary, Lithuania and Luxembourg – saw no completions. After ranking fifth in Europe in terms of new space added last year, Bulgaria isexperiencing a slowdown in activity as past increases in supply are gradually absorbed.

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