Czech Republic below average

Based on the data by the international consulting company, with 240 square metres of shops per 1,000 citizens, the Czech Republic is still below the European average of 261 square metres. Also, it is expected that this number will grow to 287 square metres in Europe.

Prague is not first

Other Czech and Moravian towns show a completely different situation. While Prague shows a saturation of 723 square metres and Liberec even over 1200 m2 of shopping centres, significantly higher than Paris, Munich or London. Even in the following year, the saturation will not exceed 400m2 per 1,000 citizens in these west European cities, where the purchasing power of citizens is higher than in the CR.

Building continues

In spite of these statistics, Czech developers will add 181,200 m2 of retail premises this year, which is a highest number since 2009. In 2014, the offer will expand by another 150,000 m2. The smaller projects in towns such as Litoměřice or Nový Jičín are increasingly finding their way into the list. Quite often these are extension of the current shopping centres or retail parks or re-development of older buildings.

Czech is stable

The DTZ international analyses see the Czech Republic as stable environment with a slight growth of consumer spending. Developers will compete not only for new shopping centres but also invest into those that are already operating to improve their positioning, environment, design and technologies. According to Lenka Šindelářová, head of Research & Consulting in DTZ, many shopping centres will reach the end of their life-span by 2015, which means that the redevelopment or remodelling is necessary.

Shift to east

According to DTZ experts, the described expansion of retail in the Czech Republic is marginal in comparison with other countries in the central and mainly eastern Europe. Twelve square metres of retail should grow just in 2013 and 2014, with 6,000,000 m2 in Turkey, almost a million m2 in Poland and France. “In some countries, such as Turkey, Rumania and Ukraine the saturation level is just one third of the European average. If the income of local citizens grows as forecasted, developers’activity will head in this direction,explains Lenka Šindelářová.