Decline in construction of new shopping malls in SA
Accelerate Property Fund says the construction of new shopping malls in South Africa has declined substantially.
Accelerate COO, Andrew Costa said that last year the retail sector adapted to lacklustre consumption expenditure with retailers consolidating stores, and the longer-term retail sector was also adapting to changing the retail patterns by introducing online shopping and a stronger emphasis by shoppers on better and convenient shopping.
A report by SA Council of Shopping Centres revealed that South Africa had the sixth-highest number of shopping centres of any country in the world.
The creation of many malls generally in Africa have sprung up throughout the years creating thousands of jobs. However, they come against a backdrop of rising debt levels.
In South Africa for example, almost half of all credit-active residents or equivalent 9.9 million people are highly indebted. According to debt counselling firm-Debt Rescue, the number is expected to swell as interest rates and inflation rise while the economy slows.
Decline in the construction of shopping malls in South Africa could signal decreased appetite from developers.