The international real estate agent predicts that the growing numbers of electric vehicle (EV) brands are seeking out profile-raising locations in order to showcase their products and engage with consumers - with countries such as Germany, Norway, Sweden and the Netherlands likely to be key destinations for take-up.

Europe is driving the expansion of the EV market, accounting for 43% of global EV sales in 2020. Savills reports that demand for showrooms is landing not on traditional motor malls and dealerships but instead on retail and lifestyle-led locations, from prime shopping centres to popular high streets. 

Germany saw some of the largest increases in EV registrations last year, according to data from the International Energy Agency. It recorded an increase in registrations in 2020 of 254%, making it the second-largest EV country market after China. 

Other hotspots for vehicle registrations are Norway, which continued to have the largest market share of new EV sales in 2020 at 75% (106,000). This was followed by Sweden and the Netherlands, reporting EV market shares of 32% and 25%, respectively.

Larry Brennan, head of European agency retail, Savills said: “It’s safe to say that the opportunity in this market is huge, and opening up showrooms in high profile locations is becoming key. 

“Stores are forming part of significantly substantial marketing budgets, breathing new life into retail destinations with state-of-the-art fit outs and providing new and engaging experiences for consumers."

Brennan added that these brands had “capital to invest” in highly innovative, ultra-modern showrooms that set them apart from traditional car dealerships.

“Standout vehicle and fit-out designs tend to need standout buildings to be best showcased, setting a new benchmark in retail. This tied with the very detailed technical and operational requirements of EV companies means that sectoral experience is key in delivering the right property solutions,” he added.

In recent months Chinese brand NIO has taken its first step into Europe with a major new 2,000sq m flagship store on Karl Johans gate, the main retail street in the city of Oslo. This store is scheduled to open at the end of September.

Meanwhile Swedish/Chinese brand Polestar has opted to differentiate itself by choosing unusual or emerging retail locations such as their recently opened store in Berlin’s Hackescher Markt, reports the international retail agent.

Savills report active brands including Vietnam’s Vin-fast, which are seeking opportunities in The Netherlands, France and Germany, Chinese brand Lynk & Co. - who are part of the Geely Motor Group and several US based manufacturers including Lucid and Rivian.

But over the medium to longer term, Savills predicts, as brands will become more established, demand will expand to more conventional locations that can offer larger spaces and test driving capabilities.

Johan Spin, retail lead at Savills in the Netherlands, said EV brands were strongly focussed on Amsterdam and in some cases Rotterdam and The Hague. While several electric vehicle showrooms have been located in Westfield’s Mall of The Netherlands.

However, he added that the supply of suitable real estate for the EV market was a challenge. “It is often difficult to find showroom space at prime locations in the Netherlands, partly because of the required floor areas as some brands require large spaces of a minimum 1,000 m2. These are not widely available in Amsterdam and are still relatively costly. Peripheral locations in the G5 cities are also difficult to find due to a lack of supply,” said Spin.