Global retail markets rebound strongly, says Cushman & Wakefield
By Bridging Loan Directory -
Despite the fragile economic recovery and subdued consumer sentiment in many countries, global retail markets have rebounded strongly during the last year according to Cushman & Wakefield.
Over four-fifths (81%) of the 63 countries surveyed by the global real estate adviser for its Main Streets Across the World report recorded prime rents increasing or remaining static over the year to June. This represents a large increase on the previous year (66%). Around one fifth of countries (19%) saw rents falling, compared with over one third (34%) in 2010.
The report provides a barometer of the global retail market, tracking rents in the top 278 shopping locations across 63 countries. It includes a ranking, produced using the most expensive location in each of the countries.
New York’s Fifth Avenue, where rents jumped by 21.6%, retained its spot as the most expensive shopping street in the world for the tenth year running. Causeway Bay in Hong Kong remained in second place and Tokyo’s Ginza in third.
The biggest climber in the top ten was Pitt Street Mall in Sydney, Australia, which jumped from ninth place to fourth following major redevelopments. Rents in the pedestrian street leapt by 33.3% year-on-year. Despite a rental increase of 4.3%, London’s New Bond Street dropped two rankings, from fourth to sixth. The UK street falls behind Avenue des Champs-Elysées in Paris which is now the most expensive retail location in Europe having registered a rental uplift of 5.3%, compared with a decrease of 9.5% last year.
Similar to last year, the Asia-Pacific and Latin America regions lead the global growth in retail rents. In Asia-Pacific, which overall saw a rental uplift of 12.2%, Wangfujing in Beijing recorded the largest growth (109.5%) and is the biggest riser globally this year. In South America, in which rents rose overall by 10.6%, Garcia D’avilla street in Rio de Janeiro was the highest climber with a rental uplift of 52.2%.
Growth across Europe (1.9%) was considerably more restrained and – with exception of the Middle-East and Africa (0%) – lagged behind other regions. However, it bounced back from the profound decline recorded last year (4.2%). Helsinki city centre showed the strongest growth in Europe, with a rental increase of 33.3%.