Monday, June 26, 2017

Half of Yekaterinburg's commercial area is shopping centers, report reveals

According to a newly released report, the total area of shopping centers in Yekaterinburg is one half of all of the city' the commercial area.

All the retail space within the capital of the Middle Urals has helped the city come to the forefront in Russia, OblGazeta.ru reports.

According to the strategic development plan for Yekaterinburg, the amount of retail space per a population of 1,000 should be 1,220 square meters by 2020.

As long as the number of investors does not slow down, it is expected that the city will have another 18 shopping centers with a total area of 690,000 square meters. A considerable part of them will not be located in the downtown areas, where 60 percent of the shopping centers are already located, according to OblGazeta.ru.

According to Ilya Klyuzhin, the director of marketing and advertising at a development company, the success of the shopping centers depends primarily on the location.

"It is more convenient to shop in the center rather than driving," Klyuzhin said, OblGazeta.ru reports.

The analytical department of CB Fair in Yekaterinburg said that within the city at the beginning of 2012, the average price for a rental space was $37.64 to $39.35 per square meter. In shopping malls, the rates are twice as high.

Experts said that the commercial real estate market in Yekaterinburg will be able to develop further, especially with neighborhood stores located in close proximity to customers.

Alexander Zasukhina, the director of the consulting company Ural-Hermes and an adviser to the Minister of Trade, said that the Sverdlovsk region will intensify trends such as the emergence of new conceptual malls.

"[We] will expand specialized shopping centers, such as the retail park outlet center, construction sports, children's furniture shopping. [And we] will increase the differentiation positioning on the major consumer groups in terms of income," Zasukhina said, according to OblGazeta.ru.