Demand for luxury branded goods is boosting the performance of prime retail property in Europe’s leading shopping destinations. Cushman & Wakefield reports that, in sharp contrast to many high streets, rental growth on so called ‘super streets’ rose by 4.5 per cent in the first half of the year.
Head of Research David Hutchings says that the streets that house the world’s top brands continue to go from strength to strength and this has resulted in a polarised retail sector.
He continues; “A successful store can be a big driver of growth and as a result luxury retailers are competing for the most coveted shopping destinations, exerting upward pressure on prime retail values.
“Despite recent slower sales growth, the luxury sector will remain resilient and will continue to play a vital and prominent role in driving overall performance in Europe’s premier retail cities.”
The most expensive street in Europe is the Avenue des Champs-Élysées, in Paris which has seen rental growth of 30 per cent over the period. This is followed by London’s New Bond Street.
Shoppers in New Bond Street
In terms of the number of luxury goods outlets, Paris, London and Milan lead the field. Paris currently boasts 209 luxury stores, while London has 162 and Milan 138. Zurich’s Bahnhofstrasse is also proving itself to be an upcoming ‘super street’ with an increase of 8.7 per cent thanks to brands such as Rolex, Patek Philippe and Chopard.
London is home to the most diverse luxury brands, demonstrating its continuing international appeal. In contrast French brands account for 55 per cent of retailers in Paris, while Italian brands are even more dominant in Milan at 68 per cent.
This has led to demand for prime location retail space outstripping supply in all three cities and the opening of several new stores.
Peter Mace, head of Central London Retail at Cushman and Wakefield said; “London is a natural choice for luxury retailers because of its position as a fashion hub and the rich mix of nationalities and tourists.
“Overseas shoppers are ensuring that luxury retail on these streets continues to thrive.”
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