Asia dominates global shopping centre development pipeline
Global shopping centre development continues to grow with a total of 11.4 million square metres (sqm) of new shopping centre space opened in 2014, compared with 10.6 million sqm in 2013.
Emerging markets, particularly in Asia, have continued to dominate the shopping centre development pipeline with over 39 million sqm 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 sqm, followed by Shenzhen (3.4 million sqm) and Chengdu in third place with 3 million sqm. 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.
In the Middle East, Abu Dhabi continues to strengthen its position as a leading retail destination with the completion of four new centres including the Yas Mall located on Yas Island with space for 400 shops, a 20 screen cinema and 10,000 car parking spaces.