New shopping centres are opening apace on the continent this year and into 2018. Drapers rounds up the developments to look out for.
Property consultancy Cushman & Wakefield forecasts that 18.3m sq ft of new space will be completed in western Europe this year and into next, while 28m sq ft of space is on track to be added in central and eastern Europe. Turkey is set to have the most new space coming on stream but the uncertain political and economic environment may limit investment.
In western Europe, a new centre in Portugal’s Algarve is hoping to attract domestic and tourist shoppers when it opens this summer, offering 585,000 sq ft featuring retailers including Primark, H&M, C&A and Mango. The Mar Shopping Algarve centre in Loulé, central Algarve, is owned by Ikea Group and will be anchored by the Swedish furniture retailer, as well as a 50,000 sq ft open-air leisure area.
The 700,000 sq ft Mall of Switzerland (pictured above) will open its doors in September, offering 150 stores and restaurants, a 12-screen cinema, an indoor surfing facility and a day nursery. The centre in Lucerne has signed up international names including H&M, Mango and Footlocker.
Set to open in autumn 2018, the 645,835 sq ft Redi development in Finland is being billed as the most experiential shopping centre in Helsinki. It will feature 200 stores, including supermarkets and other retailers, 38 cafes and restaurants, a climbing wall, a flying centre and a simulator ride by Australian company 7D Cinema. It is expected to attract 12 million visitors in its first full year, rising to 17 million annually by 2027. No fashion retailers are currently signed up but around a third of space will be dedicated to clothing, footwear and accessories.
The Schultheiss Quartier in Germany is a shopping, office and leisure centre located on the site of the former Schultheiss Brewery in Berlin Mitte. It will offer around 150 stores across 320,000 sq ft of space when it opens in 2018.
Meanwhile, in central and eastern Europe, Turkey is set to overtake Poland as the largest shopping centre market in the region by the end of 2017. One of the flagship developments is Emaar Square in the Çamlıca area of Istanbul, a new lifestyle development with 1,000 homes, a 180-room five-star hotel and a 1.6m sq ft shopping centre. The mall at Emaar Square will feature a wide range of leisure facilities, including a family entertainment centre, an ice rink, a cinema and an aquarium. Emaar Square is due to open in April.
Russian property developer Crocus Group is due to open its third “Vegas” retail-entertainment complex in west Moscow this year. Vegas Kuntsevo will offer 1.2m sq ft of retail space.
Next month the Belgrade Plaza in Serbia will open with retailers including H&M, Zara, Bershka, Pull & Bear, Tezenis and Polish retailer Reserved trading from the 350,000 sq ft retail and leisure mall.
Finally, the T1 shopping and entertainment centre in Tallinn in Estonia will be a showstopper when it opens next year. A Ferris wheel on the roof will offer views of the city. Below, it will offer more than 200 stores across 560,000 sq ft, as well as a trampoline centre and an adventure park.
Cushman & Wakefield suggests Bucharest and Sofia have good potential – both have low shopping centre densities per head and strong consumer spending growth is forecast for the next five years. Barcelona and Munich could also provide opportunities for new shopping centres, but the popularity of high street shopping in Spain and difficulties in securing building permits in Germany are key constraints limiting future development activity.
Despite the regional differences and relative maturities of the markets, the overarching trend is for shopping centres to become destinations where retail is part of a wider leisure experience.
Drapers Property Report: European shopping centres to watch