Year-on-year inflation in Slovakia has been around 2% since March, a CBRE report on retail figures has revealed. Year-on-year prices have been higher in 11 out of 12 expenditure groups of households.
On average only goods and services in the recreation and culture were cheaper than last year. The most significant impact on the value of inflation was year-on-year higher prices in the restaurant and hotel sector, as well as other sectors with a lower share in household expenses.
The vacancy rate across the portfolio of retail properties managed by CBRE was in June 2024 the lowest since 2021, after falling significantly compared to the same period last year. Prime shopping centre rent was €70 per sqm/month. Prime retail park rent was €16 sqm/month.
Looking at the number of visitors to shopping centres, we can see an increasingly strong revival during the year, when in April the number of visitors increased year-on-year by up to 11% when comparing the first half of 2024 with the same period last year. Prime shopping centre yield remains at 6.5% and prime retail park yield at 7.15%, with no year-on-year change.
Tenant turnover growth in the second quarter was more moderate than at the beginning of the year, but year-on-year turnover in the first half of 2024 is almost 4% higher compared with the same period in 2023. In terms of construction, Slovakia is currently dominated by retail parks that are being established across the country with an average leasable area of 5000 sqm.
Total shopping centre stock was 1.653 million sqm out of what 568,000 was situated in Bratislava. Retail park stock was 720,000 sqm out of what 74,000 was in Bratislava and the rest 647,000 sqm in other regions. There is an expectation of 23,000 sqm of shopping centres to be completed in 2024.
