Outlook 2025 – 2027: Strongest city centers continue to thrive
#2024
The division in the retail market will become sharper in the coming years. While shopping areas in the centers of smaller cities are forced to shrink further, the nine strongest city centers continue to thrive. In these urban centers, institutional investors also have the potential for value growth in the future, writes Achmea Real Estate in the Outlook 2025 – 2027.
Investors can particularly find opportunities in retail properties of at least 250 m² in well-visible locations in city centers, preferably on the ground floor. The growing trend of mixed-use projects, combining retail with residential, office, and hospitality, offers additional possibilities. This creates a constant flow of visitors and enhances the attractiveness of the locations, ensuring more stable returns in the long term.
Neighborhood shopping centers with a solid catchment area and a well-aligned offering will also remain attractive for investment in the coming years. The demand for quality, well-positioned centers is high, while the supply remains limited. Investing in these centers can lead to long-term, stable returns, especially when the supply meets the needs of the local community.
Sustainability will also play an increasingly important role. The demand for sustainable retail spaces is rising, especially when they offer flexible layouts. Landlords are increasingly offering retail spaces at higher rental prices, but where the lower startup costs for retailers often compensate for the price difference. This provides investors with the opportunity to benefit from the growing demand for sustainable and flexible retail space.
Neighborhood shopping centers with a solid catchment area and a well-aligned offering will also remain attractive for investment in the coming years. The demand for quality, well-positioned centers is high, while the supply remains limited. Investing in these centers can lead to long-term, stable returns, especially when the supply meets the needs of the local community.
Sustainability will also play an increasingly important role. The demand for sustainable retail spaces is rising, especially when they offer flexible layouts. Landlords are increasingly offering retail spaces at higher rental prices, but where the lower startup costs for retailers often compensate for the price difference. This provides investors with the opportunity to benefit from the growing demand for sustainable and flexible retail space.