Luxury retail property continues to perform strongly in Europe with rental growth for space in top luxury shopping streets up 4.5% over the year to June 2012, according to a report published by Cushman & Wakefield at Mapic in Cannes.
Luxury retail property continues to perform strongly in Europe with rental growth for space in top luxury shopping streets up 4.5% over the year to June 2012, according to a report published by Cushman & Wakefield at Mapic in Cannes.
Rental growth on these 'super streets' has outpaced the growth seen on Europe's most expensive high streets which were up on average 1.7% and widened the gap with the mass market which saw just 0.5% growth.
David Hutchings, head of research at Cushman & Wakefield in EMEA, said: 'Against a backdrop of economic woe, Europe's resilient 'super streets' which house the world's top luxury brands, have gone from strength to strength this year resulting in a heavily polarised retail sector across the region.
'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 rental 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,' he said.
Europe remains a crucial luxury market, accounting for 30-40% of sales globally for most major brands. France, Italy, the UK, Germany and Russia are the top markets. More notably, Europe is also the most important manufacturing base for many of the world’s luxury brands.
The most expensive retail location in Europe was again the Avenue des Champs-Élysées, Paris recording rental growth of 30% over the year and widening the gap with second placed New Bond Street, London.
