The development of the retail MARKET is UNDER THREAT!!! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine

The development of the retail MARKET is UNDER THREAT!!! - News about real estate, Kiev, Kyiv region. Real Estate In UkraineThe retail real estate market in Kiev is developing rapidly, it is not typical for other cities in Ukraine. Despite the fact that Kiev is considered to be a large settlement, according to the degree of attractiveness for tenants...The retail real estate market in Kiev is developing rapidly, it is not typical for other cities in Ukraine. Despite the fact that Kiev is considered to be a large settlement, according to the degree of attractiveness for retail tenants it is on par with cities such as Krivoy Rog and Poltava, and significantly behind Kiev, Odessa, Dnepropetrovsk and Kharkov.At this point in Zaporozhye formed a situation where on the one hand, landlords are committed to creating quality retail space, which allows to attract large customers, and this initiative has not found support from local consumers who prefer small areas with low rents. Because of poorly developed infrastructure, a common major network operators are in no hurry to enter the market Zaporozhye, and work with small local business owners of shopping centers don't want to.Professional shopping centerThe market of professional retail real estate Zaporozhye is only beginning to emerge. Now in a city with a population of 848 thousand people functioning less than 10 shopping malls and chain supermarkets such as Billa, "Silpo", "Velyka Kyshenya", "ATB" and others. In addition, there are several supermarkets, four shopping center network "Amstor" and the recently opened "okay".In Zaporozhye shopping centers is not entertainment sector, and only in some of TC are the food courts. In shopping centers "Space city" and "Palmyra Plaza" entertainment zone only at the planning stage, operators are still not matched. Note that the underestimation of the entertainment component leads to low attendance and help to attract potential clients. Therefore, the availability of such services is desirable not only large but also medium-sized commercial complexes.Anchor tenants in the shopping center of Zaporozhye serve food supermarkets as well as large operators and consumer electronic digital technology. Very rare – food courts and Braine-annual clothing stores.The largest and most visited is the shopping center "Ukraine". It is not a conceptual renovated Department store, and high attendance is achieved at the expense of established ideas about the store, as the best place for shopping, but also due to the convenient location (city center) and a wide range of products.The largest number of shopping centers and street retail is concentrated in Zaporozhye, Lenin Avenue is the main retail corridor of the city. Unlike the professional shopping malls, local street retail is more developed. Although branded operators in the absence of proper and adequate offers professional space in shopping centers are located in freestanding stores in the city center.Currently in Zaporozhye actively construct four objects with a retail component: "Bayda Business Hall", "Amstor" (the fifth in the city), the second phase of the shopping center "OK", and the second phase of the shopping center "crown Plaza". In addition declared the construction of more and more large and promising features that are at various stages of design (multifunctional complex "most-city Center", "Aqua land" and others). However, practice shows that the agreed terms all the time relegated – so -, SEC "Dafi" and shopping center "Caravan", which was previously announced to open in 2007, is still not even started to build.Today in Zaporozhye there are about 15 properties that identify themselves as shopping malls, but only 8 of them can be called such in more or less the full value, and only one of them has an element of fun.Most major shopping centers include: the shopping center "Ukraine", cum, "intrad", "Grand", "Amstor", "Palmyra Plaza", "Elit", "Space city".General commercial Plaza, major shopping malls is about 33 000 sq. m. And zapalne-dence is at the level of 95-100%.The last two years was marked by the advent of Zaporozhye number of both large and small retail projects. Their number does not allow to speak about the present boom, but growth area, which is expected in the near future, indicate a gradual development of the market of shopping centers. The most characteristic feature of the local market shopping center is the predominance reconstructed, and not built "from scratch" projects.Format issuesZaporizhzhya entrepreneurs paid little attention to market research. The creation of retail properties was often spontaneous and unsystematic character. When you create shops and shopping complexes ignored such factors as the location, its accessibility, the concept of selection of tenants. For several years in Zaporozhye there were shops, but the amount has not turned into quality. It turned out that most trading systems do not meet the current demands of potential customers. Gradually the high level of competition and the increasing demands of consumers has led entrepreneurs to create a conceptual commercial establishments with clear criteria for the selection of tenants and a focus on a particular segment of buyers.Now Zaporozhye makes the first steps to move from SC to the SEC. Entertaining an element that has long been an integral part of shopping malls in major cities of Ukraine, Kiev still has not appeared. Currently, as already mentioned, the local shopping center can boast only the presence of food courts, and not all.The development of entrepreneurship in Kiev enters a new stage of "customer-oriented" trade. If yesterday the stores were profitable, regardless of what they traded and where he was located, now the demand is for those who have a good location. And tomorrow will benefit those who will offer additional services.It should be noted that today Zaporozhye businessmen pay attention not only on the location of the commercial facility, but have to consider its accessibility. Headache for buyers — car Park — finally came to the attention of the owners of the shopping center. Although in General Zaporozhye occupancy of Parking areas remains small (30-50 cars), yet recently near shopping centers strive to accommodate larger Parking lot (100 cars). In addition, there is a tendency of improvement of the adjacent territory in accordance with the overall architectural design.Rental ratesFor example the capital rental rates in the regions are growing. They depend on the size and density of the population, living standards, incomes, inhabitants, investment attractiveness of the region as a whole.For modern retail space is characterized by Zaporozhye relatively high rents in new projects or commercial corridors of the city. In the remaining shopping centers and street rates relative to other regional centers of Ukraine and the average low. In General, rents for retail premises in the shopping center in Zaporozhye recently presented range from $ 15 to $ 75 per sq. m. selling Price varies from $ 800-5000 per sqmA leader in the level of prices in the market square is Lenin Avenue, well, part of it from the intersection with Angolina to the intersection with Blvd. Shevchenko (downtown). This is the site on separate premises are sold at a price of 5000. E. per sqmIn Zaporozhye already declared the construction of major shopping centres as "Metro", "Square", "Caravan", etc., which would mean an increased supply of quality retail space.Forecasts and prospects of developmentThe most important trend that defines the state of the market is the growth of modern retail space in the city with the construction of new shopping centers. This trend will continue in the future. So, in 2008 is expected 76% increase due to the commissioning of two major shopping centers.This will be facilitated by such factors as lack of retail space in Kiev and increased customer demands for quality leased space. In addition, a considerable degree of influence has increased the level of culture of consumers who have recently sought to make the acquisition process more comfortable and enjoyable.Since Zaporozhye (according to many experts) refers to the city with a favorable investment climate, has intensified the interest in this region of the large network companies. Already declared the construction of major shopping centres as "Metro", "Square", "Caravan", etc., which would mean an increased supply of quality retail space. Active implementation of the periphery of the city has already implemented the network operators "ATB", "Economy ", "eve", "whale".Investment projects developed for a specific customer, have a higher degree of profitability and begin to bring profit to owners is already a year and a half, while the average payback period for the city of Zaporozhye is about 3-5 years. According to experts to build new premises in Zaporozhye cheaper than reconstructing older, the bole that the most cost-effective building almost everything is already taken. However, this raises another problem - the lack of land in the city centre.Today in Kiev is still too early to carry out experiments Metropolitan and build great buildings, which combine not only shopping, entertainment components, but also office and even residential areas. However, it is possible that the creation of such complexes may gain popularity in the future. We can say that even now there are preconditions for creation of these projects.To achieve the same balance between supply and demand is possible only if the large shopping malls, i.e.

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