Bratislava, Slovakia. Image: Ruth Rudolph | pixelio.de
Studies & Reports

Inside Bratislava

Stable returns and consistently good economic forecasts currently make the Slovakian capital particularly attractive. Developers remain reticent when it comes to creating new space, however.

After several relatively subdued years, the retail landscape in Bratislava seems to be coming alive again. This is not because of the amount of retail space added in 2015, which was still relatively small. Instead, it is primarily due to the good economic prospects Slovakia as a whole currently offers.

“Following a retail sales growth rate of -0.6% in Q1 and 0.7% in Q2, retail trade volumes continued to improve slightly as they grew by 2.7% in June, 1.6% in July, and 1.3% in August 2015. Industry growth was driven by strengthening purchasing power and a decreasing unemployment rate in the country, which had a positive effect on overall consumer sentiment. Year–on-year inflation changed from 0.1% in Q2 to 0.2% in Q3, while the unemployment rate dropped from 11.6% in June to 11.5% in July and 11.3% in August 2015,” the real estate service provider Cushman & Wakefield explained in a recent report.

Bratislava has several prime shopping centers situated in strategic locations. The most important are Aupark, Eurovea, Avion Shopping Park, Polus City Center and Central. Most malls also include entertainment and leisure facilities. “Following the trend of Q1 and Q2, the popularity of the shopping center locations in the country has impacted high street retail sales volumes. This resulted in units from previously popular high street locations relocating to newer shopping centers. These remained the most preferred and sought-after locations in Q3 of 2015 as well,” reported Cushman & Wakefield.

Shopping center density

In principle, experts’ expectations for the Bratislava region are quite positive and they expect a further increase in the creation of new retail space in the coming years. The current shopping center density in the Slovak capital is 736 sq m per 1,000 inhabitants. Special mention should be made here of the first phase of the 16,600-sq-m Twin City. The office project by HB Reavis, including retail space, will be expanded in the coming years in several phases to up to 64,200 sq m.

Investment market

“The retail investment market was not very active in the last quarter, although a few smaller deals with prolonged negotiations and unknown completion dates have been undertaken. Prime high street yields have remained unchanged at 7.50% since March 2014. On the other hand, shopping center yields have been decreasing for the last year, dropping from 7.25% in September 2014 to 6.25% in September 2015,” according to Cushman & Wakefield.

Most important shopping centers in Bratislava

Eurovea 60,000 sq m
Aupark 57,300 sq m
Avion Shopping Park 84,000 sq m
Central 36,000 sq m
Polus City Center 40,000 sq m
Bory Mall 53,000 sq m

 

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Studies & Reports MORE

Footfall-Anchors Post Corona – 5 Propositions for the New Future of Retail

“Covid-19 is the biggest challenge of our time and it affects the retail sector as well as the retail real estate market. With the study Footfall Anchors Post Corona–5 Propositions for the New Future of Retail, we discuss the current situation for retailers, investors, project developers, and municipalities on a broad scale. In collaboration with renowned experts we discuss the new future of retail, the real estate industry, and subsegments of the retail real estate sector. The result is a comprehensive documentation of the status quo regarding the situation of retail asset class.” - Angelus Bernreuther, Head of Investor Relationship Management at Kaufland Germany.

Yet another hurdle cleared

Modern retail stock in Romania will exceed the 4 million sq m threshold by the end of the year. Several openings were postponed due to Covid-19.

Poland: A review of historic months

Almost 90,000 sq m of new retail space was delivered to Polish market in the second quarter of 2020. Footfall amounted to approximately 80% of last year’s due to the pandemic.

Drastic sales losses in Swiss malls

Malls in Switzerland are currently losing 39 million Swiss francs in revenue per day.

Impact of COVID-19 on the Czech Republic’s retail sector

The corona virus pandemic and the related measures represent an entirely new and unexpected situation for the entire real estate market, with a global scope and a major local impact on everyone. According to Cushman & Wakefield Czech Republic, retail is one of the most affected sectors, yet it should also play a pivotal role in re-starting the economy.

29.7 million euros gross lost revenue per day in Austria

Standort + Markt recently published a first estimate regarding the anticipated daily loss of revenue of shopping places in Austria due to the corona shutdown. Its results provide solid guidelines for the European retail real estate market in general.