The considerable increase in consumer spending in the countries in Central and Eastern Europe has triggered a wave of shopping center projects across the region, the Wall Street Journal reports.

A total of 1.12 mln sqm of commercial space is expected to be launched into exploitation in Poland alone next year, versus 205,000 sqm this year. This is a nearly five-fold increase, data by Jines Lang LaSalle reveals.

614,000 sqm of commercial space will enter into operation in Czech Republic next year, against 400,000 sqm this year.

The greatest number of shopping mall projects are being developed in Russia and Poland.

The increasing number of projects, however, is hurting the amount of return on investment in such. In the Czech Republic and Poland it is already getting closer to the western average.

Shopping malls in Prague bear an average 5% return per year, which is close to the 4.75% in London.

This is why investors are eying countries far to the east, as return on investment in such projects there is still higher than in the CEE region.

In Romania investment in a shopping centers bears an average 7.5% return per year, and in Bulgaria it is a little higher – 8%, according to Cushman & Wakefiled data.