Hong Kong has been recognized as the city with the highest retail rents globally, with Russell Street in Causeway Bay earning the title of the world’s most expensive retail street. However, when it comes to rental growth in luxury retail markets, Paris and London have been leading the way. According to a report by property consultants Cushman & Wakefield, New Bond Street in London has been ranked as the most expensive street in Europe and third globally, with rents remaining flat at US$1,744 per square foot.
In recent years, the retail market in Hong Kong has faced challenges, particularly for local and international retailers. However, a rebound has taken place due to the increase in Chinese tourist arrivals, making Causeway Bay a highly desirable location for luxury brands.
In Asia, Tokyo’s Ginza was named the second most expensive street, while Beijing’s Wangfujing led the chart for China. The data indicated a decline in average rents for some top locations, but a separate report by Savills pointed out the streets with the fastest rental growth in the third quarter of the year.
Avenue Montaigne in Paris saw a substantial 20% year-on-year increase in rents, making it the top location for luxury rental growth. Other cities like London, Madrid, and Stockholm also experienced notable growth rates. At present, rents on London’s Bond Street are at an average of €30,140 per square meter per year.
Overall, Europe has shown dominance in luxury retail rental growth, with various cities demonstrating strong performance. This underscores the significance of strategically positioned physical stores for global retailers, especially in the luxury sector. Despite challenges in the retail industry, consumer spending on luxury goods continues to remain robust.
To learn more about the luxury retail market in Paris, visit Paris Luxury Stores. For insights into the retail industry in London, check out London Business and Economy.
