Rocketing rents and the crash in the pound since Brexit has seen rents on London’s New Bond Street rise to become the highest in Europe and the third highest in the world.
Only New York’s Upper 5th Avenue and Hong Kong’s Causeway Bay retain their first and second place rankings, according to research from global real estate giant Cushman & Wakefield.
Avenue des Champs Élysées in Paris has dropped from first to third place in the past year, while New Bond Street has jumped to become the most expensive location in Europe in dollar per square metre calculations.
Bond Street, which is home to watch boutiques including Jaeger-LeCloultre, Hublot, Breitling, Rolex and Patek Philippe, is four times more expensive that Rue du Rhone in Geneva, the epicentre of luxury watch shopping in Switzerland.
London’s New Bond Street leapt into third place in the global rankings in 2017 as rents increased by over a third (in local currency) on the previous year to €16,200 psm/yr. The increase relative to other global destinations underlines the strength of London’s premium retail offer and strong demand for prime retail space in the West End.
Milan’s Via Montenapoleone, where rents rose 12.5% on the year to €13,500 psm/yr, was ranked fourth, while the Avenue des Champs Élysées in Paris, where rents are €13,255 psm/yr, fell to fifth place despite rents remained unchanged over the year.
Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said: “Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world.
“Premium retail destinations, including New York’s Upper Fifth Avenue, Hong Kong’s Causeway Bay and London’s New Bond Street, are highly sought after by international brands seeking to create engaging retail experiences that offer something new and exciting.
“The most innovative retailers are combining their online and physical platforms to create a seamless omni-channel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”