Global shopping center development continues to grow with a total of 11.4 million m² of new shopping center space opened in 2014, compared with 10.6 million m² in 2013.
Emerging markets, particularly in Asia, have continued to dominate the shopping center development pipeline with over 39 million m² under construction at the end of last year. China accounted for over 60% of the pipeline, with Russia, Turkey and India also possessing significant space under construction, according to the latest research from global property advisor CBRE.
Shanghai tops the ranking for most new space under construction with 4.1 million m², followed by Shenzhen (3.4 million m²) and Chengdu in third place with 3 million m², Chongqing and Guangzhou make up the top five most active markets with more than 20 projects in the pipeline. However, supply of new development in China and India is at risk of slowing down due to the economy and mounting financial pressures on landlords. Construction of some shopping malls is on hold due to lack of funding or in some cases landlords are considering changing the schemes to other uses.
Europe accounted for 20% of total completions in 2014 with Russia and Turkey continuing to dominate the new development pipeline. Moscow was the most active European country in 2014 and the only city outside of China in the top five. Notable schemes completed include the Avia Park which is currently Europe's largest shopping mall totaling 231, 000 m² of gross leasable area (GLA). Istanbul saw the addition of eight new shopping centers totaling 440, 253 m² and also has one of the largest development pipelines in Europe. This has been led by the easy availability of credit in the Turkish market which has fuelled consumer spending.
In the Middle East, Abu Dhabi continues to strengthen its position as a leading retail destination with the completion of four new centers including the Yas Mall located on Yas Island with space for 400 shops, a 20 screen cinema and 10,000 car parking spaces. Paris was once again the most active market in Western Europe, with only one center opening in 2014.