Central and Eastern European markets remain very attractive. Similarly Spain and Portugal where rents are lower than other European countries, or Italy and Greece where retail warehouses are still limited and shopping centres are still relatively recent. The Czech Republic and Poland offer good opportunities in 2004 due to the benefits of entering the EU which include the elimination of some barriers to entry and currency risk. In addition, the Moscow market continues to develop and, with incomes constantly growing, opportunities to develop shopping centers are likely to increase.
Two projections have been made for 2004. Firstly, overall market strength as a retail center has been measured and secondly, retail rental projections have been evaluated.
The top fifteen centers in relation to overall retail strength in 2004 are: Dublin, London, Milan, Prague, Leeds, Amsterdam, Manchester, Birmingham, Sheffield, Cardiff, Paris, Madrid, Glasgow, Edinburgh and Newcastle. of property valuation services A number of smaller or non-traditional cities are included in this list due to their rental growth potential for next year and the health of their current market. These projections ignore the physical size of the retail economy but rather focus on the strength and potential of the retail economy for 2004. Many of Europe’s top retail cities are projected to show no rental growth in 2004.
Property valuers provide such crucial services top ten projected rental growth cities for 2004 are as follows: Dublin (10 percent), Milan, Paris, Lisbon, Manchester, Glasgow, Newcastle, Leeds, Madrid, Birmingham and Cardiff. Other centres that have flat or zero growth projections for 2004 include: London, Frankfurt, Munich, Brussels, Amsterdam, and Prague.
This period of low or flat rental growth for 2004 illustrates an industry-wide stabilization period in reaction to global and more local economic conditions and influences. However, the European retail market as a property asset continues to perform very well in the current uncertain times, both in terms of investment and future growth potential.