Europe's Luxury Retail Property Market Healthy

By Editorial 21 November, 2013

Retail property in luxury European locations performed strongly over the year to June 2013 with prime rents increasing by 5.7 percent, according to data released on November 13, 2013 by Cushman & Wakefield.

Rental growth witnessed in streets which house the world's leading luxury brands easily outpaced the rise recorded in Europe's mass/non-luxury market (1.3 percent), a press release from Cushman & Wakefield said.

Martin Mahmuti, a senior analyst in Cushman & Wakefield's European Research Group, said: "The European retail market has been bolstered by a steady improvement in economic conditions. However, luxury locations were the main catalysts behind the rental growth revival, a contrasting performance compared with non-luxury locations, which while growing, did so at an unspectacular rate. Tourists from different corners of the world continue to provide the impetus for a number of luxury destinations and this will remain the case, particularly for sought-after streets in gateway cities."

Europe remains a crucial luxury market accounting for 30-40 percent of sales globally for most major brands with France, the UK, Italy and Switzerland the top markets. More notably, it 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 in Paris which saw a rental rise of 38.5 percent. In the UK, meanwhile, with continued demand from international luxury brands, rents in London's New Bond Street increased by 15.6 percent to make it the second most sought after street in Europe. Milan's Via Montenapoleone, which houses brands such as Dior, Gucci, Louis Vuitton and Prada, is placed third and saw a healthy increase of 7.1 percent.

Tags: Investment | Real-estate Investment | Real-estate | France | Italy | Switzerland | Retail | Expats | Europe |


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