REBEC 2022 – Nothing Is the Same in Retail Anymore

The coronavirus pandemic and the events we overcame at the time provided us with a considerable experience for future business operations, is the conclusion of the panel on real estate in the retail industry, held within the REBEC 2022 conference.

– The company Immofinanz owns a large number of pieces of real estate throughout Europe. We also have stop shops here in Serbia, as well as retail parks. We came to Serbia in 2015/16, when we opened the first stop shop in Cacak. Our products turned out to be good during the pandemic as well – says Dietmar Reindl, COO Immofinanz Austria.

According to him, the shopping centers brand known as Vivo, which is owned by the company, operates in several countries of Europe.

Coronavirus pandemic taught us to be proactive

Talking about the experiences from the coronavirus period, Maxence Liagre, CEO MPC Properties Serbia, says that, at the company, the coronavirus pandemic has taught them that they needed to be “permanently ready”.

– As we’ve seen in the case of Covid, the world is rapidly changing. We now have the war in Ukraine and we have to be ready for it all and proactive above all – Liagre notes.

He emphasizes the very important role that communications play in all that, because a lot of people need to be kept in safe places. As he said: “We are learning from the challenges we’ve encountered so far”.

– I believe that neither of us fulfilled the 2020 business plan. The pandemic upset the plans, and our brand Vivo communicated with consumers during that period, not just in the field, but online as well – Reindl says.

As he described, the first critical period was the initial lockdown, but a solution was soon found.

– In that period, plenty of trust was established between us and the consumers – he says.

Development of shopping centers in Serbia

Regarding the decision to invest in Serbia, Dietmar Reindl notes that it is primarily a well-researched market.

– We saw our potential in small cities. We started with the retail park in Nis. Our stop shop concept is acceptable primarily because of the price which is good for the populace in smaller cities. We have noticed that people do not like to travel in order to shop. People like to shop where they live – Reindl explains.

He says that a new service, “stop shop wallet”, has been provided to the purchasers, providing a wide online offer of products.

Immofinanz Austria also operates a lot in Croatia, where the current situation regarding real estate in the trade sector is the same as it was in Serbia 5 or 6 years ago.

– The Shopping Center Usce is the first shopping center we opened in Serbia. It still operates well and we want to continue our operations in that direction. We believe that shopping is related to emotions, and we are also noticing some new shopping trends, such as “minimalist shopping” – emphasizes Maxence Liagre.

According to him, Usce is showing a good synergy with the buyers, because the visitation rate is still very good.

– People become loyal to shopping centers and come again. On the other hand, it is also good for the development of the market of office spaces. When you’re opening a shopping center, you are creating new jobs in services, entertainment and other fields. It is all one ecosystem – Liagre adds.

Considering that a new time requires new business rules and that companies are therefore facing regulatory requirements, according to Dietmar Reindl, the aim is for the emission of harmful gases and the generally harmful impact on the environment to be reduced by 2040.

– “On Top Living” is our project where the construction of a living space is planned above the shopping center, but made out of wood. The project entails around 170 residential units, and what’s important here are natural materials, that is, wood. This also supports the operations in the shopping center below – he emphasizes.

As he clarified, the apartments are not meant for sale, but for rent, and the prices would be at around EUR 10 per square meter.

– We want people to live in shopping center areas, because they are in good locations – he says.

Year 2019 – “the final year of full business happiness”

– The peaceful times are over. The year 2019 was the final year of full business happiness. All the factors that we meet today, the disturbed supply chains, more expensive energy, expensive electricity, all this affects the indexation of real estate. I don’t believe that energy sources would go back to the level from before the conflict in Ukraine. That certainly increases the costs – emphasizes Dietmar Reindl.

He notes that the construction industry is facing material shortages and that a change of strategy is needed in order to reach an acceptable price.

– The prices have certainly grown and we need to accept that – Reindl concludes.

REBEC 2022 is held until June 15 in Belgrade.

S. Maricic

IMMOFINANZ AG Wien

Immofinanz Services d.o.o. Beograd

Balkans Real Estate d.o.o. Beograd

Immofinanz Austria

MPC Properties Serbia

Dietmar Reindl

Maxence Liagre

real estate prices

real estate in retail sector

shopping centers

stop shop concept

renting real estate

renting office space