The Baltic Shopping Centre Segment Dynamics in the Context of Changing Economy
||The Baltic Shopping Centre Segment Dynamics in the Context of Changing Economy
||18th Annual European Real Estate Society Conference in Eindhoven, the Netherlands
||The aim of this paper is to analyze Baltic shopping centre segment dynamics in the context of changing economy. Changing environment –growing or decreasing wages and impact to purchasing power has a direct impact on demand and supply in the shopping centres’ (SC) market. Deeper analysis of changing environment in addition to internal market structural analysis shall provide us information helpful for real estate (RE) market functioning trends forecasting. Theoretical consideration on SC market functioning in this paper is based on previous research of the author; comparative literature review was conducted to summarize various findings on factors influencing office market dynamics in the context of changing economy. The results of conducted analysis summarize previous empirical researches proving that interrelations, expectations and actions of the market participants directly depend on surrounding, or larger systems’ impact. Changing external environment – growing or decelerating economy, fluctuating unemployment, salaries and wages dynamics have a significant impact on demand and supply in the market. This theoretical research is limited to Baltic SC market segment. Deeper analysis of changing surrounding environment impacts for shopping centres’ market shall provide us information useful for RE market functioning trends forecasting. Certain internal and external economic changes (inflation growth, banks’ financial policies, and RE market crisis in other region, etc.) set some norms of internal participants’ abilities, attitudes and preferences. Close monitoring of surrounding systems and internal elements behaviour may allow softening possible outcomes or at least help to be better prepared for future changes in the market. Originality/value This paper summarizes that RE market is surrounded, or is a part of other, larger macro market, and it is worth to analyze market functioning having in mind potential impact of surrounding environments. The fact that SC can not be moved into other geographical location, tells that property market is sensitive to surrounding macro markets in particular. These aspects encourage going deeper and seeing major impacts of the surrounding environment in terms of impact’s extent and significance over time.
||real estate, shopping centres’ market segment and its functioning, market participants, functioning
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||I2: Shopping Centres (II)
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