Despite the unstable economic situation and the depressed mood of consumers in most countries, retail real estate markets around the world showed strong growth for the year, according to a report prepared by Cushman & Wakefield. In the report “Main shopping streets of the world” in most of the countries examined (81%), rental rates on the main shopping streets increased or remained unnamed for the year (starting from June 2010 of the year). In all, in 20% of countries, a fall in rates was observed; for comparison, last year the fall in rates occurred in 34% of countries.
The report shows the dynamics of rental rates for premises on 278 shopping streets of 63 countries and includes a rating of the most expensive streets in the world.
Fifth Avenue in New York, where rental rates have increased by 21,6%, remains the most expensive shopping street in the world for 10 years in a row (16,704 euros per square meter per year) Causeway Bay in Hong Kong (14,426 euros per square meter) per year) and Ginza in Tokyo (7,750 Euro per sq. m per year) maintained their positions in second and third places, respectively.
The shopping street Pitt Street Mall in Sydney, Australia, has risen from 9 seats to 4 (7,384 euros per sq. M per year). Such a sharp change in the rating is explained by a large redevelopment that was carried out on the street, which led to an increase in rates by 33,3%. Despite the fact that London Bond Street rental rates rose by 4,3%, she was not able to maintain her fourth place in the ranking, and she dropped to 6 place (.6,901 euros per sq. M per year). The most expensive street in Europe was the Champs Elysees in Paris, where rates rose by 5,3% (.7,364 euros per square meter per year). For comparison, last year, rental rates on this street fell by 9,5%.
Like last year, the largest increase in rates was observed in countries of Asia, the Pacific and Latin America. In Beijing, rental rates on Wangfujing Street rose by a record 109,5%. In Latin America, Garcia D'avilla Street in Rio de Janeiro was the leader in growth with an increase of 52,2%.
Compared to such dynamics, European growth in 1,9% looks more than modest, lower rates are only in the Middle East and Africa. However, compared with last year, when the average rate of 4,2% was recorded across Europe, the situation does not look so bad. The highest rate growth in Europe was recorded in the center of Helsinki and amounted to 33,3%.
The most expensive street in Russia remains Tverskaya. This year she climbed from 15 to 14 place with an average rental rate of 3104 Euro per sq.m. in year. At the same time, despite the fact that rates on the most expensive street in Russia increased by 28,6% (the second figure after Helsinki in Europe and tenth in the world), Tverskaya did not get into the top ten most expensive streets in Europe, where all the places are occupied by the streets of Paris, London, Milan (6,800 Euro per sq. M per year), Rome and Zurich (6,553 Euro per sq. M per year).