MAPIC: London the top city in Europe for international retailers

London is the most attractive European location for international retailers, according to a new cross-border retailer index compiled by global real estate adviser Jones Lang LaSalle. The index, launched this week in a new client report entitled Destination Europe 2013 analyses the expansion and presence of 250 international retailers.

London comes out as most attractive city across 57 key retail markets. Paris, Moscow, Milan and Madrid, all mature retail markets, comprise the remainder of the top five most attractive cities.

'London is a springboard for many retailers who want to expand internationally. We have seen several US and now Chinese retailers start their European journey over the past few months in this way,' said James Dolphin, head of EMEA Retail Agency, JLL. 'More will follow, driven in part by Westfield’s successfully launched new shopping centres, continued demand for space in Bond Street, Oxford Street, Regent Street and Covent Garden, but also sustained market opportunity, tourism levels post the Olympics, political stability and a transparent real estate market.'

However, with subdued economic growth in Western and Southern Europe, retailers are also starting to simultaneously look further east, which provides attractive expansion opportunities. Rental levels are generally lower than in more mature markets and retail sales growth prospects are clearly stronger. St Petersburg (8th), Prague (9th), Istanbul (11th), Warsaw (19th=) and Kiev (23rd=) all therefore perform strongly in JLL's index within this context.

'Central and Eastern Europe has more markets in the top 30 retail locations than Southern Europe. For mature retailers established in core European markets, Eastern Europe provides both growth opportunities and diversification,' added James Brown, head of EMEA Retail Consulting and Research, JLL.