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Retail parks lead regional expansion
Consumer confidence across Europe remains weak, and although real incomes are still rising, growth is slowing. Despite rate cuts, households continue to increase savings, limiting discretionary spending.
Shopping centre owners are enhancing their offer, particularly through expanded F&B and leisure, to drive footfall and dwell time. Discounters are moving into better‑quality centres, often occupying previously underused areas.
Retail parks continue to show strong occupier demand and very low vacancy, supporting above‑average rental growth, though markets with significant new supply may see rents stabilise.
In SEE markets, retail parks remain the main source of activity. Stock grew by over 15% in 2025—led by Serbia, followed by Bulgaria and Croatia—with a similar increase expected in 2026. Around 300,000 sq m is under development, with Bulgaria seeing particularly rapid expansion, exceeding 20% year‑on‑year.
Trends to watch
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Consumer Caution
Consumer confidence remains weak across Europe, and although real incomes continue to rise, the pace of growth is slowing. Rising household savings—despite two years of rate cuts—indicates ongoing caution and restrained discretionary spending.
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Footfall Boost
Shopping centre owners are prioritising upgrades in F&B and leisure to boost footfall, extend dwell time, and revitalise underperforming areas.
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Retail Park Expansion
Retail parks remain the most dynamic segment in SEE, supported by robust occupier demand and minimal vacancy. Stock grew by over 15% in 2025 and a similar uplift is expected in 2026, with around 300,000 sq m under development.