Colliers International EMEA conducted research of retail rental levels in the “Europe, Middle East and Africa” region for the period from the end of 2009 to the beginning of 2010. As a point of reference, Colliers used rents for top quality retail spaces of 100m2 in prime locations.

According to the research, major capitals in Western Europe mark up to 5 times higher rents in prime locations compared to major cities in the Balkans. Among them, the highest rent was recorded in Paris, 817 EUR/m2/month, followed by London, 547 EUR/m2/month, Zurich 384 EUR/m2/month, Vienna 350 EUR/m2/month, Rome and Milano both with 333 EUR/m2/month, Munich 300 EUR/m2/month, Geneva 274 EUR/m2/month, etc.

In the Balkans, Athens has the highest rental levels, averaging 235 EUR/m2/month. Belgrade trails Athens with the second highest rent rates in the region reaching approximately 150 EUR/m2/month, followed by Budapest 100, Sofia and Zagreb 90, Podgorica 70, Bucharest 60, etc.

Rental levels in shopping centers are similar. London leads with 245 EUR/m2/month, then Berlin and Geneva with 160 EUR/m2/month and Paris with 150 EUR/m2/month. In Balkans, the highest rent is recorded in Athens with 100EUR/m2/month, Belgrade and Bucharest 80 EUR/m2/month, Budapest 60, Sofia 40, Zagreb 38 etc.

Compared to other countries, Belgrade has higher rental levels due to a lack of supply on the market, and the decreased construction rate of planned modern shopping centers.

The ratio between retail space and number of people is significantly lower in Belgrade than other cities in the region with only 92m2 of retail space for every 1000 people. This ratio is considerably higher in other cities – Sofia 100 m2/1000 people, Bucharest 150, Zagreb 400, Budapest 430 etc.

Having this in mind, in the mid- to long- term, Belgrade has a great potential for development of retail objects.