May 10, 2012
According to the European Shopping Centre Report by Cushman & Wakefield, which studies 37 Euro- pean countries, new shopping centers in 2011, totaling 5.9 million sq.m, remained at the same level as in 2010 due to delayed projects in Turkey, Italy and Russia. That year, it was already at the lowest level since 2004.
Last year, the largest openings were in Russia and Turkey. More than half the surveyed countries saw a decline of new shopping centers mainly in Eastern and Central Europe: nothing new in Austria, Slovakia, Croatia, Bulgaria and Austria. Germany had the lowest level of new openings since 1989. But, thanks to the development boom in Russia and Turkey (both countries accoun- ting for 42% of the new shopping centers), 65% of the space added was in this part of Europe. In the end, 10.9 million sq.m are in the pipeline in 2012/13 including 6.4 million scheduled for completion this year even if delays are possible: 32% will be in Russia and Turkey. In addition, some huge projects are unveiled despite the economic context including OZ Mall in Krasnodar (169,000 sq.m), Puerto Vene- tia in Saragossa (123,500 sq.m) and Marmara Park in Istanbul (100,000 sq.m) scheduled in 2012, plus Mall of Istanbul (135,000 sq.m), Planeta in Ufa (Russia 110.000 sq.m), and Emaar Shopping Center in Istanbul (95,000 sq.m) in 2013.
In France, the shopping center volume rose 64% in 2011 as 348,000 new sq.m were completed compared with 210,000 in 2010. If this rhythm were expected to continue in 2012 and 2013, France would be ranked at the head of countries whose development development rate is the most impor- tant in Western Europe ahead of Italy. But, few very large operations are announced except two (56,000 sq.m in Aubervilliers) in 2011 and Confl uence in Lyon (52,000 sq.m) recently. If new large projects open over the next two years, the growth of the French market will highly focus on many small and mid-sized operations intended to reinforce the attraction of urban centers. There are also many extensions and redevelop- ment projects led by Mercialys and Immochan among others.
Retail invested volumes in Euro- pean commercial real estate rose 3.5% to almost € 40 billion in 2011. Retail‘s share of total commercial property was 32% compared with 33% the previous year: the U.K and Germany accounted for 57% of this volume including € 12 billion for the fi rst country, which remains Europe’s largest market despite a 15%-decline in volumes relative to 2010. In France, € 2.4 billion only were invested in the retail property or 17% of the total amount invested in the hexagon and a volume declining by 8% from 2010. However, 2011 was the third best year of the decade by the invested volume. The activity benefi ted from portfolio sales and from property externalization operations such as But, which sold assets for € 200 million. Investments concerned mainly galleries and shopping cen- ters for 45% of the invested amounts. As for 2012, economic uncertain- ties will weigh on the activity.
