MAPIC: Rents rise up to 20% on Europe's 'Super Streets'

Demand for space on Europe’s most desirable shopping streets has propelled rents by up to 20% in the year ended September 2013, according to new research by Colliers International.

Prime rents are now reaching £804 per sq ft per year (€863/m2/month) on London's Old Bond Street, meaning the UK capital has remained the most expensive shopping street in Europe where demand for flagship space continues to exceed supply.

While most of the top 10 high streets recorded annual growth, difficult market conditions revised downward overvalued prime rents on Geneva’s Rue du Rhône in Switzerland which suffered from the largest decline in the Top 10, down 14% on the same period last year.

In terms of the most improved rents, Oslo in Norway reported an increase of 33% in the last 12 months, and an 11% rise over the last six months (currently €205/m2/month). Other high streets which saw significant rental growth were in Manchester (up 9.5%), and Belgrade (up 9.1%).

'Further growth in prime rents is expected in London, where demand for flagship space continues to exceed supply,' said Sean Briggs, managing director of Retail Agency in Europe at Colliers International. 'Rental growth is also expected in the Baltic capitals as a result of limited number of projects in the pipeline and stable demand for retail space.'

In the shopping centre segment, the Serbian capital Belgrade recorded the highest increase in prime rents with over 30% annual growth due to demand exceeding supply. The Baltics also experienced upward pressure on shopping centre rents due to low vacancy levels and stable demand. Growth was also seen in prime shopping centre rents in Oslo (10%), Dusseldorf (5.4%) and Minsk (5.7%).

Here's a link to all the news from Mapic 2013