Shopping centre development booms in China

Global shopping centre development grew 15 per cent to 32 million sqm over a year ago, with China home to more than half of all the space under construction (16.8 million sqm), says global property advisor CBRE.

Seven of the 10 most active development markets globally are in China. These include Chengdu (2.9 million sqm) and Tianjin (2.1 million sqm), with Shenyang, Chongqing, Wuhan, Guangzhou and Hangzhou due to deliver over one million sqm over the next three years.

Other markets experiencing substantial expansion include New Delhi, Hanoi and Kuala Lumpur.

The rapid growth of new shopping centre development is attributed to a growing middle class, the urbanisation of large cities and consumer demand for better quality retail.

Retailers, including many from western Europe and North America, are competing to take advantage of these new opportunities, says CBRE.

“Prime space is in short supply in mature markets and retailers are increasingly turning to these emerging, but increasingly promising, alternatives,” said Neville Moss, head of EMEA retail research at CBRE.

CBRE noted that mixed-use types are common in both mature and emerging markets.

“Larger shopping centres of the future will incorporate major leisure attractions and other uses to create a more appealing customer experience and meet the challenge of online retailing.”

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