Shopping Centers in Turkey and other European countries expanding with no end in sight
Bloomberg reports: Turkey, known for its jewels, fabrics, and spices is one of the last European countries to have a modern shopping center, also known as a mall. Istanbul, Turkey’s most popular city, surpasses all other European countries with about 30 centers in the pipeline and accounts for two-thirds of the mall space built in Turkey. According to Frank Billand, a board member in charge of shopping centers for Union Investment Real Estate GmbH, “the attraction of Turkey is the enormous power of young people wanting to go out and improve their lot and their willingness to spend.” Turkey was chosen over Russia or the Ukraine due to its emerging markets and steady returns.
Due to an increase in strength of investor demands for malls and residential development projects, real estate companies and families Kiler GYO AS and Torunlar GYO AS of Turkey, raised 600 million liras in public share offerings. According to figures compiled by Real Capital Analytics Inc., deals are heating up in the industry. Sales of large Turkish retail properties rose 35 percent last year to 336 million euros.
Although some shopping centers will grow, others will die due to economic changes or slowing or rent cuts. However, it could also be due to locations.
“There’s a need to differentiate and create variety in new types of shopping centers,” said Avi Alkas, Jones Lang’s head of Turkey. “There might be some casualties of centers which are too near to each other and cannibalize each other.”
View the full article on Bloomberg: Shopping Centers in Turkey and other European countries expanding with no end in sight
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Posted by: Ashley Felrice