Global shopping centre development grows 15%
An unprecedented 32 million square metres of shopping centre space is currently under construction across the world, representing a 15% increase year-on-year, according to the latest research from global property advisor CBRE.
Shopping centre development activity is heavily concentrated in emerging markets, with China home to more than half of all the space under construction (16.8 million sq m). Other markets experiencing substantial expansion include Istanbul, Moscow, St Petersburg, Abu Dhabi, New Delhi, Kiev, Hanoi and Kuala Lumpur.
The rapid growth of new shopping centre development in emerging, as opposed to ‘mature’, markets is attributed to a growing middle class, the urbanisation of large cities and consumer demand for better quality retail. Retailers, including many from Western Europe and North America, are competing to take advantage of these new opportunities.
Across Europe, shopping centre development in 2012 increased by 10% year-on-year to 1.71 million sq m; however, a large proportion (72%) was in Eastern Europe. Istanbul was the most active European development market last year with the opening of seven new centres, including Marmara Park (94,000 sq m) and Trump Towers (41,000 sq m). Istanbul will be the most active development market in coming years with 32 centres currently under construction.
Europe’s other highly active development market is Russia which, like Turkey, is benefiting from strong economic growth and rising incomes. In St. Petersburg, new residential areas supported by enhanced road and rail links are driving shopping centre development, with 0.5 million sq m under construction. Moscow has the largest development pipeline, with 815,000 sq m due to open over the next two to three years. In neighbouring Ukraine, Kiev has 445,000 sq m under construction in eight centres, making it the fourth most active development market in Europe, and attracted a record 40 new international retailers last year. (source: CBRE)