Russia Leads In Retail Construction

Russia Leads In Retail Construction

Published: April 6, 2011 (Issue # 1650)

MOSCOW — Last year, 165 malls, with a usable area of 5.2 million square meters, opened in Europe — 30 percent less than the year before.

For two consecutive years, the amount of completed construction has declined, and last year finished at the lowest level since 2004, according to Cushman Wakefield analysts.

The highest amount of new construction is in Russia, where 1.3 million square meters was put into commission last year. Turkey came in a distant second with 360,000 square meters, and Poland took third with 350,000.

This year will see initial recovery on the majority of European markets, Cushman Wakefield forecast. By the end of the year, 6.9 million square meters are expected to be commissioned — 33 percent more than last year. “In many European regions, market conditions remain rather uncertain, so the amount of completed construction could increase or decrease as projects are reinstated or delayed, depending on economic growth, changes in retail sales and demand from renters,” the analysts explained.

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