Europe is undergoing a shopping centre boom, according to a report launched by Jones Lang LaSalle at MIPIM today.
The report – Shopping Centre Development Goes From Strength To Strength – forecasts that some 160m sq ft (14.86m sq m) of new shopping centre space will open in 2006 and 2007.
Spain and Italy lead with way with some 21m sq ft (1.95m sq m) of planned new space and Russia is close behind with 19m sq ft (1.76m sq m).
JLL head of European retail research, Neville Moss, said: “Key trends we see across Europe include town centre development making a comeback in more mature markets, particularly in France and the UK where many new schemes are central to wider regeneration initiatives.
“Within Western Europe, only Italy has a significant number of out-town schemes planned due to a lack of town centre development opportunities in the protected town centres and the relative immaturity of the market.”
In the UK, 8.6m sq ft (798,000 sq m) is forecast to open over the next two years, relatively modest by historical standards.
Activity is expected to pick up in 2008-2010 when a number of city centre schemes are due to open.
Like France the emphasis is very much on town centre regeneration.
The largest pipeline among the ‘mature’ markets is Germany with 15m sq ft (1.39m sq m) due to be completed in 2006 and 2007, in spite of weak retail market fundamentals.
But spending power is high and Germany remains underdeveloped compared with other ‘mature’ markets.
Reflecting the tight planning regime, the vast majority of new schemes are small to medium-sized schemes in town centres.
Poland is also witnessing a major boom. By the end of 2007 there is forecast to be 42% more shopping centre space than now.
In general, the planned schemes in Poland are larger than those of its Central European neighbours, reflecting the large number of major urban areas in Poland, but there are also a number of smaller schemes planned in the less developed smaller towns.
References: EGi News 15/03/06
