An upturn in shopping centre development in Europe is on the horizon, according to a report from Cushman & Wakefield. Although development has been subdued in some countries for the past few years, improving retailer demand and concerns about potential shortages of prime space are contributing to expectations of a rise in development activity in many European countries.

More than 2.1 million m2 of new shopping centre space in Europe was completed in the first half of 2011, roughly equal to that of the same period in 2010. 71 new shopping centres accounted for 90% of this space, while extensions of existing schemes made up the remaining 10%.

If all the projects scheduled are finished on time, the development total for 2011 will be 26% higher than that of last year when completion levels fell for the second consecutive year. Around 5.4 million m2 of shopping centre space was completed in 2010, a fall of 29% from 2009 and the lowest annual completion total since 2004.

As with previous years, Central and Eastern Europe accounted for the majority (58%) of new space opened in the first half of 2011 with strong development levels in Russia, Turkey and Poland. The largest scheme completed was Marmara Forum in Istanbul (156,000 m2). Just over 400,000 m2 of shopping space completed in Russia - nearly one fifth of the European total.

In Western Europe, Italy and Spain recorded the largest volume of new space added.

5.8 million m2 of shopping centre space across Europe is scheduled for completion in 2012, although this figure will depend on occupier demand and the pace of economic recovery. Russia and Turkey account for 41% of the H2 2011/2012 pipeline. In Western Europe, France and Italy top the H2 2011/2012 pipeline table.

Elsewhere, notably in Germany and the UK, activity remains subdued. In Germany, the 2011 and 2012 development totals are likely to be the lowest for more than 20 years.