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Jones Lang LaSalle represents the survey of European Retail City Profiles
MAPIC, 14 November, 2013 – Within five years the largest cities in Russia and Ukraine – Moscow, St. Petersburg and Kiev – will be leaders in terms of retail sales growth dynamics in Europe, according to new research by Jones Lang LaSalle; Core Cities and Rising Stars. With an annual growth of 4.2% to 4.8% the cities will take third, fourth and fifth place respectively in the ranking of the most actively growing retail markets in Europe.
According to Jones Lang LaSalle, Moscow, St. Petersburg and Kiev are among the 20 largest European markets by population, while the purchasing power of the residents of these cities is significantly lower. Moscow, for example, takes first place by population but by purchasing power it takes only 46th with purchasing power per capita of 11,000 euros. St. Petersburg is at 14th place by number of inhabitants but at 54th place by purchasing power (6,300 euros). Kiev is at 17th place by population, but according to purchasing power it takes 57th place, the lowest of all the countries surveyed (3,600 euros).
According to the research, the leaders by purchasing power are the citizens of such small cities like Zurich (38,600 euros), Oslo (25,300 euros) and Luxembourg (27,200 euros).
Olesya Dzuba, Deputy Head of Research, Jones Lang LaSalle, Russia and CIS, comments: “Despite comparatively low personal income levels, large populations, combined with a high share of spending on goods and services in total revenue (up to 75%), emerging markets look attractive for retail players in the medium term. During five years from 2013 to 2017 Moscow retail sales is expected to grow by 4.8% on average annually, putting the Russian capital in 3rd place in Europe according to the ranking. Retail sales in St. Petersburg will grow by 4.5% and by 4.2% in Kiev, putting them in 4th and the 5th place respectively. Higher rates will be observed only in Turkey. According to the forecast, retail sales in Istanbul and Ankara may grow more than 5% per year.”
Detailed description of the largest Russian and Ukrainian markets
“Moscow is the largest consumer market in Russia and accounts for 17% of all retail sales in the country. The economy has seen significantly strong growth over the last decade, which has improved disposable incomes and increased retail sales. The positive outlook and market size makes Moscow one of the most attractive markets in Europe for international retailers to enter – Tatiana Malyanova, Head of Shopping Centres Leasing, Jones Lang LaSalle, Russia and CIS, says. The Moscow shopping centre market is the most developed market in Russia but is still relatively young as construction started only in early 2000s. Moscow still has a significant potential for further development, driven by the positive economic outlook and its low density when comparing shopping centre stock with other major European cities.”
Anastasia Balmochnykh, Head of Shopping Centres Leasing, Jones Lang LaSalle in St. Petersburg, continues: “St. Petersburg is a major financial and industrial centre in the North-West Region of the Russian Federation. The retail market recovered better than other real estate sectors after financial crisis. Between 2010 and 2013 a large amount of new shopping centre space was completed, including the landmark Galeria shopping centre, leading to 40% market size growth. According to Jones Lang LaSalle, St. Petersburg is among the 10 most attractive cities for retail players. The completion of a large number of new quality projects expected in 2014 – 2016 will allow international retailers to implement their plans for expansion at the rapidly growing market of St. Petersburg.”
Anna Chubotina, Head of Retail, Jones Lang LaSalle in Ukraine, adds: “Kiev is the most attractive and developed retail market in Ukraine. The country’s economy has been growing from 2000 to 2008, but then was brought to a standstill by the financial crisis. Nowadays, increasing disposable income and retail sales is making Kiev an attractive market for retailers. Both local and international retail expansion has been limited due to the undersupply of good quality retail space and Kiev lags behind most European capitals in terms of shopping centre provision per capita. The situation will change dramatically within 1 to 2 years as the future pipeline includes a large number of quality professional schemes.”
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg and Kiev. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit www.jll.ru
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