The European retail park market is evolving at two different paces, according to a report by Savills. In Western Europe, the supply of retail parks is struggling to keep up with demand, while in Central and Eastern Europe, the market is experiencing rapid expansion. This mixed trend is highlighted in the Savills report, which compares 17 European countries.
In Western Europe, the demand for retail parks continues to outstrip supply, resulting in low vacancy rates. The UK and Ireland have vacancy rates of 4% and 3%, respectively. In contrast, Central and Eastern Europe have seen significant growth in retail parks over the past six years, with Poland, Romania, and the Czech Republic experiencing increases in available space per capita of 123%, 56%, and 31%, respectively.
The report also notes that Western Europe has seen a decline in available space per capita in countries such as Ireland, the UK, and the Netherlands. In these countries, the ratio of available space to population has decreased by 9%, 3%, and 2%, respectively. The average available space per 1,000 inhabitants in Europe is currently 109 square meters, up from 100 square meters in 2020.
Portugal has the lowest average available space per 1,000 inhabitants, at 57 square meters, while Sweden has the highest, with over 330 square meters. According to Chris Nichols, European Research Analyst at Savills, the European retail park market is increasingly divided between scarcity and expansion.
In consolidated markets, there is demand but few opportunities for new projects, leading to a focus on transforming existing spaces. In contrast, markets like Poland continue to expand, with retail parks becoming the primary commercial offering in many smaller locations.
In Portugal, the demand for retail park spaces is strong and diversifying, with an increasing presence of value and convenience brands, health and beauty, food, fitness, and leisure operators. This variety is transforming retail parks into more frequent destinations, where customers spend more time, and broadening their appeal to different operator profiles.
The investment in retail parks in Europe accelerated in the second quarter but is still below 2025 levels. Over 2,000 million euros were invested in retail parks in the third quarter of 2026, almost double the amount in the same period last year. However, the accumulated investment since the beginning of the year, 5,300 million euros, is still 7% below the same period in 2025.
Key points
- European retail park market shows mixed trends, with Western Europe facing scarcity and Central and Eastern Europe experiencing rapid expansion.
- Portugal has the lowest average available space per 1,000 inhabitants, at 57 square meters.
- Investment in retail parks accelerated in the second quarter but is still below 2025 levels.
