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European shopping centre completions fall 23 per cent as focus shifts to quality of space, says C&W Echinox

The rate of shopping centre development in Europe is slowing, with completions down 23 per cent year-on-year at 3.8 million sqm 2017, according to Cushman & Wakefield's latest European Shopping Centres report.

2018-08-23 14:02:44

The total stock of shopping centre space in Europe stood at 166.5 million sqm at the start of 2018, a year-on-year increase of 2.3 per cent during 2017. Western Europe accounts for 109.7m sqm while 56.8m sqm is in Central and Eastern Europe (CEE). During 2017, Turkey replaced Russia as Europe's most active development market, adding 495,000 sqn in the second half of the year, ahead of Russia (330,000 sqm) and third-placed Poland (298,000 sqm).

"The rise of e-commerce, changing consumer behaviour and expectations, development of the technology and still growing supply have conspired to impact the European shopping centre development and have led to reduced quantity of new floorspace being created. This is particularly the case in Western Europe's more developed market, but also in the CEE region," said Silvia Jodlowski, Senior Research Analyst, Cushman & Wakefield. "The focus for developers now is on quality of space and placemaking. Developers now consider placemaking a critical component of a successful shopping centre, as a combination of retail, leisure and entertainment still provides a destination which is not replicated online. Well-designed, dynamic and high-quality spaces are crucial to enable owners to attract shoppers and increase customer footfall and dwell time."



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