A recent study from research firm CBRE shows that rental prices for Europe’s most expensive retail locations are still on the rise. It is the only region that still experiences growth for retail real estate.
New York is number one
European rental prices grew 4.3 % on average in the past year, with slumps in every other region. New York is still the world’s most expensive location, followed by London and Hong Kong. Paris is fourth and only the second European location in the top ten.
On average, one needs to pay 3,240 dollars (2,815 euro) per square meter in New York, an enormous lead on London, where one ‘only’ pays 1,523 euro per square meter. In Paris, the number is 1,142 euro per square meter.
CBRE believes European prices are on the rise because of higher demand and low availability. The improved European economy also helps a lot, increasing a retailer’s willingness to pay higher prices.
Strong surge in London
The largest increases were located in London (+ 39.1 %), Saint Petersburg (+ 15.4 %) and Australian Auckland (+ 12.5 %). New York (- 19 %), Istanbul (- 13.6 %) and Hong Kong (- 8.3 %) were on the other end of the scale.
It was revealed earlier that week that the Meir (in Antwerp, Belgium) charges 1,950 euro per square meter on average, replacing the Nieuwstraat (in Brussels) for the very first time.
Looking at the Netherlands, Amsterdam is ranked first, with about 3,000 euro per square meter in the Kalverstraat, up 3 %. Rental prices in Rotterdam are considerably lower, at 1,600 euro per square meter on average, but it did experience a 6 % increase over the past year.