In China located 15 of the 20 most active cities in the world regarding the number of shopping centers being built.A total of 33.5 million sqm m of shopping center area is currently under construction across the world’s main cities, according to new research from global real estate advisor CBRE.
CBRE’s annual study of global shopping centre construction found that development activity of shopping mall space around the world remains heavily focused in the Asia Pacific region (APAC), which accounts for 26.6 million sqm of space, with construction activity concentrated in more than 90% of the Asian cities surveyed corresponded to 56 cities in the Americas and 14% in Europe, Middle East and Africa.
China continues the most active shopping center market estimating for 19.7 million sqm of the development pipeline under construction and includes 20 most active development markets globally and 15 cities in the top. Shenzhen takes the top place for the most shopping malls under construction with 4.5 million sqm, followed by Shanghai with 3 million sqm, together they account for 40% of China’s development pipeline as of the end of 2016.
In Europe, the Middle East and Africa the development pipeline has started to slow down with the level of shopping centers under construction figuring 4.49 million sqm Russia, Turkey, and the UAE account for the majority of action in EMEA with Turkish cities dominating the development pipeline with 1.3 million sqm of space under construction across 17 shopping centers. In the Middle East, Dubai is expected to strengthen its status as a preeminent retail destination as the market is set to see an increase in amount with 900,000 sq m of new retail space scheduled to be released over the next three years. Notable retail schemes involve the Nakheel Mall on the Palm Jumeirah, the Circle Mall in Jumeirah Village Circle and ongoing expansion projects in modern shopping centers such as the Dubai Mall.
Despite a slowdown in shopping center completions over the past few years, 2016 saw an increase of 11.4% globally corresponded to 2015.
The Americas recorded the strongest growth with shopping center completion levels up 43.6% due principally to a surge in construction in Mexico which saw 1.3 million sqm of space added across three biggest Mexican cities. EMEA shopping center completions make up 16% of the global result and saw an increase of 18% year-on-year. Istanbul and Moscow are the only markets outside of Asia to feature in the top 10 cities of world shopping center completions.