• Lower consumer confidence, the contraction of debt driven spending due to tighter credit conditions and rising cost of living is affecting retail sales across Europe.
• Despite the fact that retailer confidence for the future is worsening and margins are under pressure, international chains continue their expansion plans especially in the developing markets of Eastern and Southern Europe. Due to worsening factors of demand we expect rental growth to slow down, especially in Shopping Centres.
• Retail Parks are expanding and rising demand from non-bulky goods retailers for space in these retail formats may cause some further positive rental growth.
• The development pipeline remains substantial in most markets covered in the report including out-of-town retail parks, but also in-town developments that are often part of regeneration initiatives.
• Prime yields moved out in the first quarter of 2008 compared to the last quarter of 2007 by 14 basis points for shopping centres and 9 basis points for retail warehouses. However, investor interest in the sector remains high.

Contact Information
Eri Mitsostergiou
+30 210 6996311
emitso@savills.com