New shopping centers will be built in minimal amounts, developers claim

Prague - In the near future, only a minimum of new shopping centers will be constructed in the Czech Republic, with the trend shifting towards the reconstruction and modernization of existing ones. This was stated by 71% of directors from approximately 40 development companies surveyed by the analytical company CEEC Research.

"Shopping centers are becoming outdated. To remain competitive, it is necessary to invest in them. This is currently a significant topic for us as we begin revitalizing the IGY shopping center in České Budějovice this year," said Pavel Semrád from the CPI Property Group.

"About ten years ago, shopping centers were experiencing a significant boom, and most of them originate from that time. The current demands of the market and tenants have, of course, changed since then. Therefore, a certain revitalization is appropriate, but it does not have to be necessarily large," added Omar Koleilat, the CEO of Crestyl.

According to KPMG Czech Republic partner Pavel Kliment, demand for multifunctional or narrowly specialized properties is saturated, especially in Prague. A similar situation is expected to occur soon in other regional cities. "Renovations, particularly in Prague, will then be a topic not only for retail but also for office buildings. Many of them have been in operation for 15 to 20 years and no longer fully meet tenant requirements," Kliment added.

The current tenant mix in shopping centers does not meet client demands. On a scale from zero to ten, where ten indicates the highest level of dissatisfaction, directors from all surveyed companies consistently assigned a score of seven. Other factors causing dissatisfaction among clients include the location of some shopping centers, the number of cafes and restaurants, or the extent and quality of entertainment centers.