The report was released in London ahead of ICSC European Conference which took place in Warsaw on 25 - 27 April 2007.
Russia has the largest shopping centre development pipeline in Europe
by some distance, with approximately 4 million sq m due for completion
in 2007-2008.
Turkey is in second place with 2.2 million sq m, just ahead of Italy (also 2.2 million sq m) and Poland (1.9 million sq m).
The UK is placed seventh in Europe in terms of 2007-2008 completions,
with 1.63 million sq m expected, which is on a par with Germany and
Spain.
Neville Moss, Head of European Retail Research at Jones Lang LaSalle
commented: “As expected, emerging and maturing markets dominate new
development – Russia and Turkey will account for one third of all new
space in 2007-2008. The exception to this is Germany. Although a mature
market in terms of evolution, Germany’s shopping centre stock is
relatively old and stock per head is still low. The current development
programme will increase the level of high quality retail provision in
city centre locations with the focus on small and medium sized
schemes.”
Developers and retailers are now targeting the regions in Russia. In
the Millionniki (regional cities with a population of one million and
over), stock is expected to rise from 1 million sq m today to 3.4
million sq m by 2008. Samara, Nizhniy Novgorod, Kazan and Yekaterinburg
remain retail hotspots, but Novosibirsk, Ufa, and Rostov will also see
strong retail provision growth.
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Over the next two years more than 60 new centres are scheduled to open
in Turkey. The main share of the pipeline (43 schemes) will be
developed in Istanbul and Ankara but regional markets are gaining in
importance, with another 18 schemes due for completion in cities such
as Bursa, Izmir and Antalya.
In South Europe, Italy is the most active market with over 2 million sq
m due to open over the next two years. New development is heavily
focused on the under-supplied central and southern regions, although
new generation schemes are also being developed in the north.
The Polish market is also growing rapidly. By the end of 2008 there is
forecast to be 40% more shopping centre space than now. With limited
opportunities left in the bigger cities, developers are now focusing on
smaller towns with populations of 200,000 and less, and increasingly on
towns with as few as 50,000 people.
In Spain, shopping centre supply has doubled over the last six years,
but is now growing more slowly, with an 18% increase in stock forecast
by 2008. The focus for new development is on second tier cities and on
Mediterranean coastal locations such as Valencia, Alicante and Murcia.
New residential development, the increase in second homes and a strong
tourist economy is proving a powerful attraction to developers.
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