Shopping centers – perspectives of development

Shopping centers – perspectives of development

Today development of the shopping centers’ markets in Ukraine gathers high movements. In this segment of commercial property investment projects raise special interest not only by native and Russian investors but also European companies and banks. It is not surprisingly, as terms of pay-off period in Europe is between 10-15 years and terms of pay-off period in Ukraine is 5-7 years. For today in Ukraine there are 1170 sq. ft. of trade area for thousand of citizens.

According to this rate, Ukraine leaves off and from Euro union and from other countries of Eastern Europe. By tempos of development among commercial real estate the trade areas market of Ukraine is on the first place. However, deficit of large-sized trade property is felt in all regions of Ukraine, the most popular trade centers are those which correspond to the modern demands. In spite the fact of new construction of new shopping centers, rent rates will grow for several years. There is high quest not only for rent but for buying trade areas (rise the interest of foreign investors). The most active development of trade centers is in the capital of Ukraine and on the south-east of the country – in thickly populated, economic developed regions with high incomes in comparison with west part of the country. In these regions are 90% of biggest regional trade networks.

Large sized trade property is dynamically developing in Crimea. In Simferopol are working as Ukrainian as regional networks. Simferopol, Yalta and Sevastopol in comparison with Odessa are leaders by growth of prices for trade property in south regions of Ukraine. Shopping centers’ market of Sevastopol is a bit inferior to Simferopol but it will be pulled through in a few years. Today in Sevastopol there are almost all big trade networks of Ukraine – Fozzy Group (trade brands “Fore” and “Silpo”), “Furshet”, “Velika kishena” and etc. and all Ukrainian company “XXI century” starts the realization of its trade-entertainment centers “Square” in Sevastopol and Simferopol earlier than in big cities of Ukraine. Also regional networks are developing in Sevastopol. The biggest is “Alen” (food), has 9 trade objects and in quick tempo build one more centers in Sevastopol and Simferopol. The most popular in Sevastopol today are accommodations with square 1000-5000 sq. ft. and 10000-25000 sq. ft.

Rent rates are between from 25 to 108 USD per 10 sq. ft. per month in the central part of the town and from 13 to 66 USD per 10 sq. ft. per month in other regions of Sevastopol. The most active rent rates are growing in the central part of the town. Specialist of real estate explain it by absents of proper plots, especially in more prestigious regions with formed infrastructure. Price of the sell the trade area in Sevastopol is about 1500-3800 USD per 10 sq. ft. in the center and 800-2000 USD per 10 sq. ft. – in other regions of the city. It should be mentioned that more than 70% of companies which are interested in commercial property in Sevastopol, informed that they want to buy but not rent the tread areas. As a result of researches in first quarter 2007 in Sevastopol is more than 20 projects in a stage of construction.

Their total square is more than 800 thousand sq. ft.. Unfortunately, only half of existing projects could be rifer to the shopping centers which correspond to demands. Among interesting under construction projects could be singled out 12 storey multi functional complex “Megapolis” where will be shopping and entertainment center, offices, restaurant, club and underground parking. Upon condition of realization of all objects, at the end of 2009 in Sevastopol on 1000 people will be 2300 sq. ft. of modern trade square (then this rate will reach today’s Kiev).

So, definite deficit of qualitative trade areas will be till the end of 2010. In new projects of region there is a tendency which foresees the construction of the shopping complexes with small square. Only in one project is planning full infrastructure which will take two floors; other projects will foreseen in majority trade and office squares. In Ukraine, particular in Kiev, there are a tendency of creation objects which will combine several segments – for example, offices, trade and entertainment or hotel, trade and entertainment. As a perspective such objects will be also in Sevastopol.