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By
AFP
Published
Apr 27, 2009
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European shopping centre expansions hindered by the crisis

By
AFP
Published
Apr 27, 2009

AFP - Around 7 million metres squared worth of new shopping centres or expansions to existent ones in Europe have been reported to have been cancelled because of the economic crisis. This finding was published in a study by the agency Cushman & Wakefield on Tuesday 21 April.




With “close to 10 million metres squared” of shopping centres seeing the light of day, 2009 certainly looks like a record setting year after 2008 (9 million metres squared), but these figures were down when compared to forecasts published at the end of October by the international real estate consulting firm.

Cushman & Wakefield predicted almost “26 million metres squared” in 2008-2009. “In 2010 the slowdown won’t be worn out as only 7 million metres squared should open, the weakest opening figures since 2005 and the end of five consecutive years of growth in the development of shopping centres in Europe,” elaborated Cushman & Wakefield in a press release.

“A weak consumer spending outlook and increased caution of companies which are limiting their development is constraining the realisation and completion of many projects”, added the office.

It is in emerging countries, “which have for the past few years seen a boom in the opening of shopping centres”, that slowdown is strongest.

Less than a quarter of development projects in Russia, Ukraine and Turkey will be shopping centres, down from more than half just one year ago.

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