Török Árpád: CEE recovery is still above the Western European level

“CEE’s recovery is still on the go – slower, but still above the Western European level. The re-entry of international investment banks and the active presence of large investment funds prove a solid confidence in the CEE region. The positive economic aspects like falling unemployment and low interest rates support consumer spending growth, that with its 2,7 % in the core CEE will also boost the retail sector in 2016. For the first time, in 2015 retail accounted for 45% of the total investment volume for the CEE, the yields are close to 2007 levels.  As for new developments, 2016 will be similar to 2015 with 3 retail projects in Poland, 5 in the Czech Republic, no new retail scheme in Slovakia and Hungary. The tenant’s activity will be on the contrary even more active. While a record 185 new retail brands entered CEE in 2014-2015, further big international brands including mainly fashion brands, like COS and Forever 21 will enter CEE. Beneath growing e-commerce, the growing importance of food courts has to be considered – more and more people visit shopping centres only to eat, and they search for quality options. The era of classic food-courts is slowly over. In addition to a growing demand of F&B opportunities, the shopping centres shall also provide a large variety of leisure facilities. We cannot speak about simple shopping centres any more, the future is about leisure and shopping centres.”

Source: The article was published in  Wire , May, 2016