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For the first time since the crisis the interest of developers and investors that develop retail real estate projects was once again appealed to the regional centres that are not limited to metropolitan areas. This opinion was expressed by experts of Retail Forum Ukraine 2012, an annual forum on retail real estate market in Ukraine. The unique format event was held on May 29 at the President Hotel. The forum was organized by Ukrainian Real Estate Club.
According to moderator of the forum Nick Cotton, Managing Director, DTZ Ukraine, there remains potential for the development of new shopping centres in a number of Ukrainian cities with population over 600,000 people in addition to the key regional centres. «For the first time after crisis retail projects are now seen to be actively progressed not only in Kiev and, the major regional cities but, also now in secondary regional centres of over 600,000 population. Of key consideration to developers is the ability to deliver efficient modern space in strong locations as, very often existing competition tends to be rather secondary» - said the expert.
This opinion was shared by Natalia Kochergina, Partner, the Head of the real estate practice, DLA Piper Ukraine: «Six months ago investors have concentrated their attention exclusively on Kiev, but recently the interest begins to be traced also to the megacities».
According to the company UTG, existing leasable area of retail space in 2011 in Kharkov was 428.8 thousand sq. m (297 sq. m per 1,000 people), Donetsk - 277 thousand sq. m (285 sq. m / 1,000 people), in Dnepropetrovsk - 377.7 thousand sq. m. (377 sq. m / 1,000 people), in Odessa - 264.4 sq. m (which is 263 sq. m per 1,000 inhabitants). At the same time vacancy rate of retail space in the regional centers last year was held at a level of 0-1% in Kharkiv to 1-7% in Dnepropetrovsk (in Kiev the figure was 0-1.6%).
At the same time, as noted in the reports of DTZ Ukraine, by the end of March 2012 the total amount of modern retail space in the capital was 359 sq. m per 1000 inhabitants. According to analysts, presented at the forum, the figure for 2015 could rise up to 500 sq. m per 1,000 people, which, according to Nick Cotton, will be only about half of the supply in the peer CEE capitals such as Prague and Warsaw but, also very importantly includes a far higher degree of secondary ‘first generation' retail space which, is likely to become very rapidly marginalised as more modern retail mall space now comes to the market.
«A great potential beyond the development of new space is the relatively ‘easy win' for developers to radically overhaul the operation of existing poor centres by revising layouts, tenant mixes, management regime, marketing and branding so as to improve the performance and competitiveness of existing facilities. DTZ are now working with a number of developers and, banks in providing such services either directly or, on a consultancy basis», - highlighted the Managing Director of DTZ Ukraine.
Retail Forum Ukraine in 2012 was held on May 29 at the President Hotel. Participants of the annual event, organized by Ukrainian Real Estate Club, became the leading players of the Ukrainian real estate market, international retailers and developers, specializing in retail real estate. The unique format of the forum takes place at the third consecutive year, and raises the most pressing issues for the industry.
Among participants of the Retail Forum Ukraine 2012 took part such companies as - 1849 plc, Amstar Europe, Argo Real Estate Opportunities Fund, Arricano Commercial Real Estate LLC., Auchan, BEITEN BURKHARDT, BILLA Ukraine, Chapman Taylor, Colliers International, Compass Development, Depot Devolepment Group, Delta Projectconsult Ukraine, DLA Piper Ukraine, Dragon Development, DreamTown, DTZ Ukraine, East One, Ernst & Young, ERSTE GROUP IMMORENT UKRAINE, ESTA HOLDING, Evo Land Development, Forum Evolution, Fozzy Group, GFive Development, Gleeds Ukraine, Global Restaurant Group - Ukraine, Helen-Marlen Group, Homeland Development, Immochan, Invest House, ITT - Real Estate, Jones Lang LaSalle, Knight Frank, Korsando, Lacoste, Lee Cooper Jeans, Luxury Style Ukraine, Mango, Marks & Spenser, Meyer Bergman, Midland AG, Midland Development, MOS International , Multi Development Ukraine, Nivki City, Raiffeisen Bank Aval, Rustler Property Services, Seven Hills, Siemens Ukraine, Sonae Sierra, TK Property Management, TPS, TransUkraineIntersport, UDP, UTG, VDone, Vertex Hotel Group, XXI Century Invetsments, AMOTERRA, Asnova Holding, BNS Trade, «Budinok ²grashok», BudHaus Group, Vil - 147, VS Energy International, GERC, Inkom, Ineko, Contact Invest, Krai Property, Liko Holding, Maxi Bud, Media-Trade Ukraine, Kyiv City Civil Project Institute, NEST, «Novaya Liniya», Ukrbudcontract, Forum Invest, Everest Estate, Elitmobi, UTA Service and others.
