TURKEY LED NEW MALL DE­VEL­OP­MENT IN 2017, SLOW­DOWN AHEAD

Shopping Center News - - NEWSMAKERS NATIONAL -

As per a Cush­man & Wakeͤeld Euro­pean Shop­ping Cen­ters: The De­vel­op­ment Story’ re­port, pub­lished in Hur­riyet Daily News, the shop­ping cen­tre sup­ply in Turkey rose sig­niͤ­cantly with 1.1 mil­lion sq. mts. of new space, mak­ing it the most ac­tive coun­try in terms of de­vel­op­ment in 2017 across Europe de­spite a loss in the cur­rency value. Turkey was fol­lowed by Poland and France in the se­cond and third po­si­tions. Ac­cord­ing to the re­port, which was re­leased on Au­gust 6 2018, a fur­ther 1.4 mil­lion sq. mts. of new mall space is ex­pected to be added in Turkey in the 2018 and 2019 pe­riod, while a slow­down is also ex­pected. The re­port showed that Western Europe recorded a 23 per­cent de­crease in new shop­ping cen­ter com­ple­tions last year, as 1.5 mil­lion square me­ters of new shop­ping cen­tre space was de­liv­ered. Shop­ping cen­tre de­vel­op­ment also slowed in Cen­tral and Eastern Europe, where an­nual com­ple­tions de­clined by 23 per­cent to 2.3 mil­lion square me­ters, ac­cord­ing to the re­port.

“De­spite ex­change rate volatil­ity, weaker oc­cu­pier de­mand and fall­ing rents, Turkey was the most ac­tive coun­try and ac­counted for 47 per­cent of to­tal com­ple­tions in the CEE re­gion. Shop­ping cen­tre land­lords are at­tract­ing new oc­cu­piers by of­fer­ing pure turnover rents for a lim­ited time of up to one year,” said Toárul Gön­den, Cush­man &Wakeͤeld Man­ag­ing Part­ner. “However, de­vel­op­ment is set to slow given the rel­a­tively weak trad­ing en­vi­ron­ment and near sat­u­ra­tion lev­els in parts of the mar­ket,” he added. “Turkey’s mall sec­tor has rapidly grown for the last 10-15 years. With 147 square-me­ter gross leasable ar­eas in square me­ter per 1,000 pop­u­la­tion, Turkey has even sur­passed Rus­sia. De­spite this, a fairly high stock ad­di­tion is planned to Turkey’s mall mar­ket,” Gön­den fur­ther stated.

Berna Namoglu / Shut­ter­stock.com

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