Rents in prime European shopping centre markets will likely remain stable over the next two years due to a sharp decline in new assets coming to the market, real estate adviser Savills has predicted.
Rents in prime European shopping centre markets will likely remain stable over the next two years due to a sharp decline in new assets coming to the market, real estate adviser Savills has predicted.
Savills said the annual supply of development completions is expected to drop by 12.5% per year on average between 2011 and 2013. This is a significant contrast to the previous seven years when shopping centre supply across these markets grew annually by 22.4% on average, according to the firm's data.
The forecast is based on a study of seven European retail markets including Germany, Greece, Italy, Poland, Spain, Turkey and the UK.
Eri Mitsostergiou, director in Savills European Research, said: 'A slowing rate of shopping centre development completions in Europe will help avoid oversupply in the markets and keep rents stable and vacancy rates down in the prime shopping centres.'
