TURKEY LED NEW MALL DEVELOPMENT IN 2017, SLOWDOWN AHEAD
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.
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