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Sat, Feb 11 2012
Bulgaria tops European charts for new shopping mall construction
There is an explosion in the construction of new shopping malls in Bulgaria, a tendency which is apparently unaffected by the economic stagnation caused by the global crisis, declining customers and lack of financing in the market.
The international consultant company Cushman & Wakefield has revealed in a report, quoted by Stroitelstvo Gradut, that Bulgaria is a European leader in terms of new construction completed for the first six months of 2009. Moreover, Bulgaria is likely to retain that first position for the next 18 months as envisaged new retail space due for completion in the country will augment it by 3.7 times its current capacity.
Bulgaria still trails at the bottom of the European charts as far as total area of shopping malls in Europe, per capita of population, is concerned. Perhaps this is scarcely surprising because, according to statistics, the average Bulgarian has only slightly more than a third of the purchasing power of the average northwest European.
However, should construction levels in Bulgaria maintain the same level, by the end of 2011, Bulgaria will have progressed from the current 25 sq m per 1000 people to levels currently enjoyed by Belgium, Malta and Croatia, who have anything from 100 to 75 sq m per 1000 people, provided of course that the aforementioned countries do not construct additional shopping malls.
Furthermore, the Cushman & Wakefield report indicated that construction levels in Bulgaria are actually considerably slower than they would have been had it not been for the global economic downturn. This saw the number of proposed projects slashed by 20 per cent.
More than 500 000 sq m of new retail area are expected to be completed in Bulgaria, which is more than the proposed construction in the United Kingdom, Spain, Germany and the Ukraine.
In western Europe the crisis, lack of financing and crediting, the deteriorating global recession and many other interrelated factors have contributed to the sharp decline of total volume of proposed construction for 2011, which in comparison to corresponding figures during the peak of the sector in 2007 has marked a 45 per cent decline. According to the Cushman & Wakefield report, however, the industry expects a rise in business in the following two to three years.
In a report by the international consultant firm, Jones Lang LaSalle, it is revealed that the total volume of investments in shopping malls in Europe has risen by as much as 85 per cent in Q2 of 2009, reaching two billion euro. Those figures still amount to a 63 per cent drop as of levels from the first half of 2008, and the current 2009 figures are very similar to those the industry recorded in 2004.
Source: propertywisebulgaria
The international consultant company Cushman & Wakefield has revealed in a report, quoted by Stroitelstvo Gradut, that Bulgaria is a European leader in terms of new construction completed for the first six months of 2009. Moreover, Bulgaria is likely to retain that first position for the next 18 months as envisaged new retail space due for completion in the country will augment it by 3.7 times its current capacity.
Bulgaria still trails at the bottom of the European charts as far as total area of shopping malls in Europe, per capita of population, is concerned. Perhaps this is scarcely surprising because, according to statistics, the average Bulgarian has only slightly more than a third of the purchasing power of the average northwest European.
However, should construction levels in Bulgaria maintain the same level, by the end of 2011, Bulgaria will have progressed from the current 25 sq m per 1000 people to levels currently enjoyed by Belgium, Malta and Croatia, who have anything from 100 to 75 sq m per 1000 people, provided of course that the aforementioned countries do not construct additional shopping malls.
Furthermore, the Cushman & Wakefield report indicated that construction levels in Bulgaria are actually considerably slower than they would have been had it not been for the global economic downturn. This saw the number of proposed projects slashed by 20 per cent.
More than 500 000 sq m of new retail area are expected to be completed in Bulgaria, which is more than the proposed construction in the United Kingdom, Spain, Germany and the Ukraine.
In western Europe the crisis, lack of financing and crediting, the deteriorating global recession and many other interrelated factors have contributed to the sharp decline of total volume of proposed construction for 2011, which in comparison to corresponding figures during the peak of the sector in 2007 has marked a 45 per cent decline. According to the Cushman & Wakefield report, however, the industry expects a rise in business in the following two to three years.
In a report by the international consultant firm, Jones Lang LaSalle, it is revealed that the total volume of investments in shopping malls in Europe has risen by as much as 85 per cent in Q2 of 2009, reaching two billion euro. Those figures still amount to a 63 per cent drop as of levels from the first half of 2008, and the current 2009 figures are very similar to those the industry recorded in 2004.
Source: propertywisebulgaria
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I heard that GE are getting out of BG altogether...they are normally straight guys and on the money so interesting to wonder what has gone wrong especially with Mall Sofia which is on paper a big success. Probably they over did it in the so called 'disaster' Mall Plovdiv.
Dragomir is right, when the big investors run there is problem. Mall Plovdiv IS a joke here locally...no one likes it and no one wants to go. We have our high street herein Plovdiv nd that islife, not in some clinic Mall owned by foreigner.
" Bulgaria is a European leader in terms of new construction.."
and then:
"Bulgaria still trails at the bottom of the European charts as far as total area of shopping malls in Europe, per capita of population, is concerned."
Of course, if we are way behind the average, it's only natural that we will be "the leader" for about 5 minutes, until we reach some state of economic balance.
What I don't understand is the venom. Why the negativity about something so natural, a [...]
Read the full comment trend that's right where it should be, just because it's happening in BG.
Even if it's something of a bubble, which I except as a possibility, bubbles are temporary - as the economy picks up, we'll happy we have the venues...
Bringing a balance to the negative sentiment on Retail Development here and generally, many of these projects must I am sure be viewed as strategic. The developers that have the "stomach" and the pockets for this tough patch economically will sit with much sought after real estate in the future, I think.
Interesting to read all the venom here.
You'd think the article was about construction of whore houses for minors...
..it's a bubble, no need to get your you know what in a twist. Capitalism has bubbles. From the Louisiana bubble in the 1700s, to the mortgage backed securities of the 2000s, courtesy Wall Street, that drove many countries to the brink.
From John Law to Bernard Medoff - history keeps repeating itself, and there's nothing new, uniquely Bulgarian or unusual about this shopping mall overbuilt.
its clear that the authorities have got their priorities all wrong, letting private investors hash up the town creating outlets for global selling of poor quality products is very sad
When the big boys run from the market something is up...GE are selling out of Mall Sofia and the Plovdiv disaster will be next! Wonder who they will manage to pursuade to buy! Make a good laundry...
What they don't mention is how badly the current malls are doing...Mall of Plovdiv is a disaster and very badly managed. CCS and Mall Varna have tenants on strike...developments in Ruse are going to totally oversupply the town...Last year's talk of the town...all dead...Riufissa, Balkan Car, Akropolis..Bulgaria Mall on hold...
There seems to be built only things that puts Bulgarian people in debt.
Yet another example of overbuild... poor (in every sense) Bulgaria!
"Enjoyed", by whom exactly? Those who have the money. Plus ca change.....
Yet another example of overbuild... poor (in every sense) Bulgaria!
"Enjoyed", by whom exactly? Those who have the money. Plus ca change.....