Savills News

Paris tops global ranking for luxury retail rental growth - Savills

Paris has topped a new global ranking for luxury retail rental growth between Q3 2017 and Q3 2018, according to international real estate advisor Savills, demonstrating a 20% year-on-year rise.  The firm analysed the prime indicative asking rents across the core luxury retail locations in 25 global retail cities to create the ranking, with Avenue Montaigne in Paris reporting an increase from €15,000 to €18,000 per sq m per annum (Zone A).

London, Madrid and Stockholm saw the next greatest growth, with the prime luxury pitch in each showing an 11.1% year-on-year rental increase.  On London’s Bond Street, Zone A rents currently stand at €30,140 per sq m per annum while in Madrid, rents on José Ortega y Gasset are €2,400 per sq m per annum.  In Stockholm, rents on Birger Jarlsgatan are €1,920 per sq m.

Marie Hickey, retail research director at Savills, comments: “The last year has seen European cities dominate in terms of luxury rental growth, taking six of the top nine spots.  This is followed by Asia Pacific cities, which took the other three.  Paris was by far the strongest performer, driven by improved occupational demand on the back of an improving tourist market, particularly from China.”

Anthony Selwyn, head of London and international retail at Savills, adds: “Significant rental growth in each of these ultra-prime luxury locations underlines how important strategically located physical stores remain for global retailers.  This is further supported by strong consumer spend on luxury, despite various economic headwinds affecting the retail sector more generally.”

Top nine global cities for luxury retail rental growth

City

Luxury street

Region

 

Q318 - yr/yr change
  (in local currency & measurement)

Paris

Ave Montaigne

Europe

 

20.00%

London

Bond Street

Europe

 

11.10%

Madrid

José Ortega y Gasset

Europe

 

11.10%

Stockholm

Birger Jarlsgatan

Europe

 

11.10%

Melbourne

Collins Street

Asia Pacific

 

10.00%

Sydney

Castlereagh Street

Asia Pacific

 

8.30%

Frankfurt

Goethestraße

Europe

 

6.70%

Hong Kong

Canton Road/ Central

Asia Pacific

 

5.00%

Munich

Maximilian Straβe

Europe

 

2.90%

 

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