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September 29, 2022

Investments in shopping centres stalling

Investments in shopping centres have been stalled by the recession and only one such unit was opened in the first half of the year. According to a study conducted by Cushman & Wakefield, quoted by Mediafax, only “a handful of projects” may be completed in the second half of 2010 and in the following year. At the same time, following several retailers’ decisions to close down their shops to reduce costs, vacancy rates rose in old and new shopping centres alike. Managers modified, in some cases, the format to include discount shops, the main market engine in the past 12-18 months, the consultancy firm reports. Only projects in major cities stand strong. “Although the results of shopping centres in Romania were severely affected by the recession, dominant projects in Bucharest and other major cities maintained their contracts and the interest of international retailers,” Razvan Gheorghe, partner and managing director at Cushman & Wakefield Romania, stated. According to the latter, the market is increasingly dominated by international retailers, particularly those from Germany, Austria and France. At European level, things are not much different, and the shopping centres’ market has been virtually blocked in the past two years. The steepest growths, in terms of surfaces for rental, were reported by Russia, Bulgaria and Turkey, while Romania ranks 7th out of 34 countries.

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