The consultant analyzed rents in the main luxury retail locations in 25 global cities to create this ranking. Avenue Montaigne (Zone A), in the French capital, registered the highest increase from 15.000 to 18.000 €/sqm/year.
Madrid, London and Stockholm registered the following highest increases in rents in their respective prime axis luxury areas, with a yoy increase of 11,1 %. In the area of Bond Street, in London, rents are currently set at 30.140 €/sqm/yea, whereas in Madrid, rental prices in Ortega y Gasset reach 2.400 €/sqm/year. In Stockholm, rents in Birger Jarlsgatan reach 1.920 €/sqm/year.
Marie Hickey, director of Retail analysis for Savills, indicates that during last year «Europe has dominated rental prices’ increases in luxury areas, occupying six of the first nine positions in the ranking. It’s followed by Asia-Pacific, with cities in the following three positions. Paris has had, by far, the highest increase, boosted by the rise in demand thanks to the tourist market’s improvement, particularly the one originating in China».
Anthony Selwyn, director of London and International Retail at Savills, adds that «the significant growth in rents for each of these super luxury areas highlights the importance of strategically located physical shops for global retailers. This is also supported by the luxury consumers’ strong spending, despite all the economic obstacles affecting the retail sector in general».