Russia leads the field in Europe in terms of shopping centre development

2010-04-06

In 2009 1.6 million m² of new shopping centre space was completed in Russia, the most substantial amount (22%) of such premises put into operation in Europe. Russia also leads the field in Europe in terms of shopping centre space due to be completed by the end of 2011.

In 2009 around 7.4 million m² of new shopping centre space was activated in Europe, 19% less than a year before, according to research by Cushman & Wakefield. The most substantial amount of new space opened was observed in Russia, as it was a year before – 1.6 million m². This figure was followed by those of Turkey, Italy and Poland, but the amount of shopping centre space completed in each of those countries is less than half that of Russia and does not exceed 700,000 m². Only the Russian capital – Moscow – delivered 10 new shopping centres last year, taking up almost 1 million m² in all. The largest objects put into operation in the city include the Zolotoy Vavilon Rostokino (241,000 m²), Gorod (240,000 m²) and Metropolis (205,000 m²) shopping malls.

Despite the dramatic slowdown in construction activity in 2009, Russia enjoys pride of place in the European countries’ ranking of shopping centre pipeline space, with 2.5 million m² of space due to be completed by the end of 2011. It has overtaken Turkey, which dominated Europe last year and is now in second place, with 1.3 million m² in the pipeline. Turkey is followed by Italy and France. The largest retail centres due to open in Russia this year include Vegas (398,000 m²), Gagarinsky (200,000 m²) and Mall of Russia (180,000 m²) all in Moscow.

The favourable economic prognoses for 2010 and 2011 suggest ample opportunities for the further development of shopping centre space in Russia. It is expected that retailer demand for such space will increase, that this will prompt developers to unfreeze projects put on hold during the crisis and that they will build more in those cities which are still under-supplied in terms of decent shopping centre space.

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 According to NAI Becar data