Paris tops global ranking for luxury retail rental growth - Savills

London, Madrid and Stockholm saw the next greatest growth, with the prime luxury pitch in each showing an 11.1% year-on-year rental increase.  On London’s Bond Street, Zone A rents currently stand at €30,140 per sq m per annum while in Madrid, rents on José Ortega y Gasset are €2,400 per sq m per annum.  In Stockholm, rents on Birger Jarlsgatan are €1,920 per sq m.

Marie Hickey, retail research director at Savills, comments: “The last year has seen European cities dominate in terms of luxury rental growth, taking six of the top nine spots.  This is followed by Asia Pacific cities, which took the other three.  Paris was by far the strongest performer, driven by improved occupational demand on the back of an improving tourist market, particularly from China.”

Anthony Selwyn, head of London and international retail at Savills, adds: “Significant rental growth in each of these ultra-prime luxury locations underlines how important strategically located physical stores remain for global retailers.  This is further supported by strong consumer spend on luxury, despite various economic headwinds affecting the retail sector more generally.”

Top nine global cities for luxury retail rental growth