Shopping centre completions continue at a record level in Europe, with 8 million m[sup]2[/sup] due to open in 2006-2007, property advisor Jones Lang LaSalle said in a report timed to coincide with the start of the Mapic retail real estate trade fair in Cannes, France. 2005 was also a bumper year for shopping centre developments as 4.5 million m[sup]2[/sup] of new space came on stream.
Shopping centre completions continue at a record level in Europe, with 8 million m2 due to open in 2006-2007, property advisor Jones Lang LaSalle said in a report timed to coincide with the start of the Mapic retail real estate trade fair in Cannes, France. 2005 was also a bumper year for shopping centre developments as 4.5 million m2 of new space came on stream.
SHIFT SOUTH
Jones Lang LaSalle said the focus has shifted from Western to Southern Europe and the CEE(Central and Eastern Europe). Italy is the most active market by opening over 1 million m2 of new shopping centre space in 2005, with a further 1.5 million m2 opening in the second half of 2006 and in 2007. Spain, which still has significant development opportunities, is just behind in second place with 1.5 million m2 in the pipeline. Germany completes the top three with 1.4 m2 of new space. Explaining Germany's high ranking, Jones Lang LaSalle said: 'Although a mature market in terms of age, shopping centre space per capita is still well below the European average, and other west European markets.'
EASTERN PROMISE
Declaring shopping centre development is 'full of eastern promise', the authors of the report noted that the Russian shopping centre market is booming and has the fourth largest pipeline, about 1.3 million m2, for the second half of 2006 and 2007. 'It is only a matter of time before Russia heads the pipeline list. Developers are now targeting the regions and the number of planned schemes is growing by the week.' Turkey and Poland are in fifth and sixth place, with more 1.2 million m2-plus space to open in each of the countries. Both Turkey and Russia are forecast to see a 50% increase in stock over the next 18 months. And Turkey's development boom, the report said, includes some of the most innovative design concepts in Europe.
The Netherlands has overtaken Sweden in terms of shopping centre space per capita and Jones Lang LaSalle said although the Dutch market is one of the most mature in Europe, 'retail is a dynamic sector and in a sophisticated market, new space can still provide a competitive advantage.'
The full report can be found at www.research.joneslanglasalle.com (requires registration, but it is free)
