Mall development slows in 2011

The expected upturn in European shopping centre development in 2011 was knocked off course by delays in a number of markets, according to a report from Cushman & Wakefield.

If all the shopping centre projects scheduled for the year had been completed on time, the shopping centre provision would have increased by 6.8 million m². In reality, though, shopping centres amounting to 'only' some 5.9 million m² were completed, nearly identical to that of 2010, Cushman & Wakefield reported.

Of the 34 markets surveyed, 19 experienced declines in annual shopping centre completions relative to 2010. Almost no projects were executed in the Czech Republic, Austria, Slovakia, Croatia, and Bulgaria. This year, 6.4 million m² of new premises are due to be completed in Europe and 4.5 million m² next year.

However, further delays cannot be ruled out, Cushman & Wakefield said.

Russia accounts for 21% of the European pipeline, with 2.3 million m² of new space likely to be delivered in 2012/13. In Moscow, activity has shifted towards the outskirts following restrictions on construction within the Third Transport Ring. Several projects have recently been delayed around the country, and there is some uncertainty surrounding completion dates for many schemes.

In Turkey, a number of delays have also been reported. Istanbul remains the centre of activity, with more than 700,000 m² of new space under construction. Shopping centres with GLA of 40,000 m² and up account for around 80% of the pipeline.

Just under 200 (197) shopping centres were completed across Europe last year. Of these, 117 of these took place in the second half of the year. Central and Eastern Europe accounted for over two-thirds (65%) of new space added in 2011. Similar to previous quarters, the Russia and Turkey shopping centre development markets were very active, accounting for 42% of new space. Poland, France and Finland experienced a rebound in activity after 2010's slowdown.

The largest schemes completed across Europe were: Westfield Stratford City in London (176,500 m2), Marmara Forum in Istanbul (156,000 m2) and Marineda City in A Coruña, Spain (146,000 m2).