Emerging markets are witnessing unprecedented boom in shopping mall development as growing middle class populations' fuel major expansion in emerging market retail according to CBRE.
CBRE monitored shopping centre development, both completions in 2011 and space currently under construction in 180 major cities around the world to identify the best markets. The research found 29.6m2 of space being constructed, which is equal to the existing space of Germany, the UK and France put together. The markets saw 7.8 million m2 of new mall space open in 2011.
Neville Moss, EMEA head of retail research at CBRE, commented: "It is our view that shopping centre development activity is currently at an all-time high, with growing middle class populations, particularly in the BRIC markets, fuelling this demand."
According to the report, China, which has led the way in mall development for the past several years, is expected to remain the most active development market for the next few years due to expansive untapped markets in the country's second and third tier cities. But the report also found significant construction growth in Mexico, Turkey, Malaysia and Vietnam among others.
Moss went on to say: "The maturity of the retail sector in western Europe and North America has resulted in much lower levels of development, but it has also forced retailers from these markets to seek new opportunities in fresh markets in order to grow their businesses. This trend is expected to continue and is helping to underpin the development of high quality, new retail space in emerging markets."
- Monday 25 June 2012