X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Europe’s developers are in danger of flooding the continent with unwanted cinema space, according to a new survey from FPD Savills. Several key markets now fast the prospect of oversupply.

FPD Savills’ survey found that Europe is now making the same mistake as the US, with new multiplex screens being built faster than older cinemas are closing. In the UK, the number of screens grew by 26% over the last three years, while total admissions grew by just 2.6%.

The success of building expensive, cinema multiplexes relies heavily on high attendance figures and pounds spent per capita to make them profitable, warns the report, and unless either income or the speed of closures increases some markets will be drastically oversupplied.

‘The prospects for much of the European cinema market depend heavily on closing older screens, improving efficiency, and ensuring that the right product is delivered to their local markets,’ says Mat Oakley, head of commercial research at FPD Savills. ‘Without significant belt-tightening the spectre of US-style collapses is a very real one for Europe,’ he warns.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.