Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Shopping centres: revenues back to pre-crisis level and renewed investor interest


Following their reopening in May, shopping centres have seen both their revenue1 and footfall increase to a rate exceeding the performance during the same period last year. The footfall was lower than in the pre-crisis year 2019, but the revenue was comparable; in fact, it was slightly higher. Supermarkets and hypermarkets fare the best in terms of revenue; electronics and health and beauty products are also doing well. The current performance of shopping centres can therefore be described as very strong, with figures exceeding initial expectations, and investors show renewed interest in properties again, with several major retail transactions being planned for this year and the next. To date, office and logistics properties have been selling the best this year.

The data about shopping centres’ performance available to Cushman & Wakefield (related primarily to smaller to medium-sized centres in Czech regions) show a positive trend: following their reopening, shopping centres have experienced growing revenue and footfall. Even though all shops opened only after the first decade of May, the footfall in May was 31 per cent higher than in May 2020, and revenue was a full 55 per cent higher. The June footfall and revenue were 6 and 18 per cent higher year-on-year, respectively. This is definitely good news for the entire retail market – the initial concerns that the brick-and-mortar retail segment would not survive the coronavirus crisis failed to materialise.

Jan Kotrbáček, Partner & Head of CEE Retail Agency team, Cushman & Wakefield: “It seems that the effect of delayed consumption is making itself felt in recent months, with many consumers itching to go shopping to shopping centres. At the same time, the current situation makes travelling abroad complicated, so many of those who would leave the country for holidays are staying in the Czech Republic, and thus spending their money there. With that said, we should differentiate between the various types and locations of retail projects: in our portfolio, we see great differences, mainly between smaller regional projects and larger schemes, also those in Prague’s city centre, that depend to some extent on international tourism, which still has not returned to pre-pandemic levels.”

Fewer visitors, higher spending

The numbers of visitors have not reached pre-crisis levels – people currently come to shopping centres less often. Compared with 2019, footfall was 26 per cent lower this May and 21 per cent lower this June.

However, visitors tend to spend somewhat more for their shopping there than they did before the crisis: compared with the revenue two years ago, revenue was 4% higher this May and 2% higher this June.

Prime performers: supermarkets, electronics, and health and beauty products

Not all types of shops in shopping centres perform equally well, but while some are not yet achieving pre-crisis levels of revenue, many actually are.

The pandemic had a positive effect on supermarket and hypermarket revenues – they were markedly higher in all of the first six months of this year than in the same period of the pre-crisis year 2019.

The sales of electronics grew in terms of revenue – by 32% in May and by 21% in June.

Health and beauty product retailers also report positive figures – an increase of 10 and 15 per cent, respectively.

Revenue in the fashion and shoe segment started to grow immediately after the reopening – by 21 per cent in May, although June was weaker compared with 2019 with a revenue 10 per cent lower.

By contrast, the revenue in the personal services segment and in cafés and restaurants within shopping centres still remained below pre-crisis levels in May, growing however in June by 27 and 1 per cent, respectively.

Retail in investors’ sights again

This confirmation of this part of the retail market’s resilience and good performance is an important sign also for real estate investors, who are showing a renewed interest in shopping centres and retail parks after a period of hesitation and uncertainty.

Michal Soták, Partner, Head of the Capital Markets team in the Czech Republic, Cushman & Wakefield: “Shopping centres‘ performance after partial lifting of Covid-related restrictions has been stronger than general market expectations. This, coupled with favourable pricing, means that western investors are starting to be interested in CEE’s shopping centres after a pause of Covid-related uncertainty. Investing into food store assets is of particular interest among investors of all types.”

The interest in retail on the part of investors is evidenced by the 11 retail project deals completed since the beginning of this year. A large portion of those consisted in the sales of retail parks, which were the most resilient face to face the coronavirus crisis, but a major shopping centre deal also took place: Bluehouse sold the Korso Karviná shopping centre with Cushman & Wakefield serving as consultant.

We should see several more shopping centre sales in the Czech Republic this year and investment activity in this segment should increase further next year.

Investments in real estate exceeded last year’s figure by one-fifth

Investments in commercial real properties totalled EUR 678 million in the first half of this year, which is one-fifth more than in the same period last year. Cushman & Wakefield expects that by the end of 2021 total investments will amount to about one and a half billion Euros, which is more than last year’s total, yet markedly less than in the years before the coronavirus pandemic.

Michal Soták, Partner, Head of the Capital Markets team in the Czech Republic, Cushman & Wakefield: “After a period of waiting, investors are now optimistic about the economic rejuvenation and have a backlog of unspent capital to deploy on the market. Transaction activity in the Czech Republic is however low; there is a shortage of suitable properties for sale on the local market, partially due to development being low across sectors; and a mismatch between what the capital is targeting and what is available.”

Office and logistics properties remain in demand

In the first half of the year, investors spent the most on offices whose part in the total amount invested was exactly one half. The number of office transactions was also the highest at 12; the most important included the sale of several office schemes in Prague (Parkview, Avenir Business Park and Explora Business Centre), Ostrava (Nová Karolina Park) and Brno (Platinium).

Michal Soták, Partner, Head of the Capital Markets team in the Czech Republic, Cushman & Wakefield: “Prague offices are targeted by Czech and regional buyers and their pricing and liquidity is stable. Prague is an undersupplied market that went into the Covid situation with record low vacancy, therefore it is expected to weather any dip in demand very well.”

Almost one-fifth of the total investments in the first half of this year were channelled into industrial properties that continue to enjoy a great interest among investors.

Michal Soták, Partner, Head of the Capital Markets team in the Czech Republic, Cushman & Wakefield: “Logistics assets remain highly sought-after, particularly the ones that benefit from the boom in F&B e-commerce, i.e. urban logistics projects. Their supply is very limited.”

Investments in hospitality accounted for 16 per cent of the total amount; this segment witnessed one of the biggest transactions of the first half of 2021 with the sale of the W Hotel Evropa in Prague. Investors approach hospitality properties – and high-street projects in Prague in general – case by case, but the sentiment is positive in the mid-term perspective.

The Czech Republic is the target for domestic investors and CEE’s No.2

Domestic investors accounted for the largest share of buyers in local transactions in 2021 with 43%, focusing primarily on offices and retail parks. German investors came second with a 13% share, followed by Israelis and Singaporeans.

Czechia was investors’ second choice in Central Europe (Czech Republic, Slovakia, Poland, Hungary and Romania). Out of the total amount invested in the region, which was EUR 3.7 billion, one half was directed to Poland and almost one-fifth to the Czech Republic. Compared with the first half of last year, investments in the region were one-fourth lower, although Czechia saw a 20% increase at a time when the other countries, except for Slovakia, experienced a significant decrease.


1 For the purpose of this comparison, revenues achieved in shopping centres do not include supermarket and hypermarket revenue, since those establishments had not been closed due to the pandemic.


Media Contact

Michaela Sedlbauerov
Michaela Šedlbauerová

Head of Marketing Czech Republic • Prague

Related News

Parizska street, Prague, main street, high street, shopping
Main Streets across the World 2022

Pařížská Street is the most expensive retail district in CEE, placing the Czech Republic on the 17th position worldwide and 10th in Europe in the comparison of countries based on prime rental value in their most expensive shopping district.


Robert Skládal
Robert Skládal joins the Cushman & Wakefield Retail team

Robert Skládal joins the Cushman & Wakefield Retail Agency team as a Partner. The experienced retail market professional will lead the Shopping Centres team.


euromoney award
Cushman & Wakefield Named by Euromoney the Best CRE Advisers and Consultants in CEE and Worldwide

Euromoney’s 2022 Real Estate Survey has named Cushman & Wakefield, a leading global real estate services firm, the No. 1 commercial real estate Advisers and Consultants in the CEE & Baltics region. The firm won also worldwide, for a fifth consecutive year.


hotel lobby, man, suitcase
Hotels in Prague see fivefold year-on-year increase in revenues in June

This June, RevPAR (revenue per available room) at Prague hotels was five times higher than last year, climbing to EUR 73.5. This is the highest increase in Europe and just 19% lower than in the pre-crisis year of 2019.


Petr Dolejs, Petr Markvart
Petr Dolejš and Petr Markvart Appointed Partners at Cushman & Wakefield

Cushman & Wakefield, the leading global real estate services firm, promotes Petr Dolejš from the Asset Services team and Petr Markvart from the Office team to Partners.


architects, project managemers, plans, workspace
Czech Republic has the second highest fit out costs in CEE, still half of those in Germany and UK

In the comparison of 26 European cities, Prague placed the second in the CEE region in terms of the price of fitting out an office. Still, with EUR 1,037 being the average cost per square metre in Prague, it is half of what is standard in top German cities or in the UK where the median cost exceeds EUR 2,000.


Operator map, CEE SEE
Prague Hotels: Decline in 2020, Potential in the Long Run

The latest STR figures show that the Prague hotel market has borne the brunt of the coronavirus crisis in Europe.


Related Insights

Czech Republic, Prague, Old Town Square, High Street
MarketBeat • Insights

Czech Republic MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly Czech Republic commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová • 04/11/2022
Research, graph, table, data
MarketBeat • Insights

CEE MarketBeats

Cushman & Wakefield MarketBeat reports analyse quarterly commercial real estate activity in the CEE region (Czech Republic, Hungary, Poland, Romania, and Slovakia) across office, retail, industrial and hospitality real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová • 09/09/2022
Prague, Czech Republic
Research • Economy

Czech Real Estate Market View

A regular update on the commercial real estate market in Czech Republic.
Marie Baláčová • 23/08/2022
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

Welcome to our third edition of the joint Cushman & Wakefield–CMS report on the Hotel Investment scene in CEE: Overcoming the Pandemic & Bridging the Financial Gap.
Bořivoj Vokřínek • 01/07/2021


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
Save settings