Colliers: Cautious Optimism Returns to Europe Retail Segment
Rental rates in most European retail sectors are expected to either stabilize or increase in the coming year, while prices in Bulgaria and its capital Sofia remain relatively low, says realtor Colliers International.
This is seen as a clear indication that enhanced demand in some of the counties will push up rental rates and optimism is back in retailing, Colliers International experts say.
"The international market for shopping center real estate is characterized by less new supply compared to previous years, but the quality of projects has improved," Iglika Yordanova, Manager – Retail Services, Colliers International shared.
"Retail real estate developers are more realistic now, and present projects of genuine value to the market. On the occupier side, retailers are both careful and selective when renting space in shopping malls, yet remain committed to expansion across borders as they perceive that the market currently provides real opportunity."
Three capital cities in EMEA (Europe, Middle East and Africa) are standing out in terms of interest both on the occupiers and developers' side: Cairo, Istanbul and Kiev.
All three cities are characterized by a significant pipeline of large-scale shopping centre projects, as developers respond to an undersupplied market. 763,000 sqm of prime shopping mall space is expected to open in Istanbul in 2011, while Cairo has a pipeline of 287,000 sqm scheduled for opening in 2011.
The current average monthly rent for a 100-150 sqm unit in a prime shopping mall in Istanbul is EUR 184/sqm/month, while in Kiev a similar unit rents at app. EUR 120/sqm/month.
In comparison, a mid-size shop in a prime shopping mall in Sofia could be rented at an average rate of EUR 39/sqm/month.
Text: novinite.com
Photo: EPA/BGNES
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(21.12.2010)