Nordicum - Real Estate Annual Finland 2017 | Page 19

Photo : YIT development of shopping centres will be positive in HMA , despite the increasing supply .
Vote with Your Feet
Positive development is also being witnessed in the KTI indices commissioned by the Finnish Council of Shopping Centers . According to the indices , comprising 38 shopping centres in Finland , the number of visitors and retail sales in shopping centres increased by 5.9 % and 6.0 % in the third quarter of 2016 compared to the previous year . In the Helsinki Metropolitan Area , retail sales grew by 5.4 %, while elsewhere in Finland the growth was as high as 6.9 %. The cumulative figures for the previous 12 months showed an increase of 4.5 % in the number of visitors , and the increase of 3.3 % in retail sales compared to the previous 12 months .
According to KTI , you should expect especially the large shopping centres in HMA to emerge as winners in the tightening competition . About half of the Shopping Center Barometer respondents believe that rents will grow and occupancy rates will increase during the next three years . However , in the smaller shopping centres in HMA , as well as in the shopping centres elsewhere in Finland , the rents and occupancy rates are expected to remain stable or decrease . Nevertheless , the outlook is more positive compared to previous year ’ s survey across Finland .
Diversification Takes Hold
According to the KTI report , the supply of shopping centres is also evolving . The importance and market share of traditionally large business fields such as fashion and department stores are decreasing in shopping centres . Meanwhile , the importance of , for example , restaurants , health and beauty , leisure and public services keeps increasing .
One example of the way shopping centres are coping with the times is Forum , located in downtown Helsinki , which was selected as Finland ’ s best shopping centre by the Nordic Council of Shopping Centres ( NCSC ) in October , 2016 . Having gone through a three-year renovation project , the new-and-improved shopping centre was fully launched in autumn 2015 and has performed very well ever since .
Originally founded in 1985 , Forum was one the first shopping centres in the land and has thrived largely due to great location and diverse offering ( 140 stores ). With the € 50 million renewal project , Forum not only added 8,000 sqm of retail space , but also tightened its hold on the key demographics . For example , the friends of fashion , sports and leisure activities are sure to enjoy their time here .
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