CBRE: Bucharest - 45th place in most expensive retail destinations ranking

Bucharest occupies the 45th place of 85 in an international ranking of the most expensive retail destinations according to a square metre of retail space, conducted by the CB Richard Ellis (CBRE) real estate agency, outranking cities as Brussels, Helsinki or Washington.

According to CBRE data, retailers pay an annual rent of 1 560 euros per square metre in the Capital, according to the "Global Retail Destinations" ranking.

The first position in the hierarchy of the most expensive destinations for retailers goes to New York City, where the annual rent for a square metre of retail space amounts to 11 400 euros, followed by Moscow - 8 000 euros, London - 6 734 euros, Paris - 6 250 euros and Tokyo - 6 126 euros.

From the states in the Central and Eastern European area, only Prague is before Bucharest, on the 25th place, with a rent  of 2 520 euros, while Budapest, Cracow, Warsaw and Belgrade occupy positions , 56, 57, 58 and, respectively, 59, with the same rent level, 1200 euros, while Sofia is on the 68th position, with a rent of 900 euros.

Ranked behind Bucharest are Brussels (48th place, with a rent of 1 500 euros), Helsinki (51st place - 1 370 euros) and Washington (60th place - 1 140 euros).

To make up the ranking, CBRE included 85 of the most important retail markets across Europe, Middle East and Africa, Asia Pacific and America, the main analysed factor being the rent paid by the owners of the stores situated in the most important retail avenues.
Although topped by an American city, on the whole, the ranking is dominated by European destinations, which occupy 16 positions of the top 20 and 37 of the top 50.

"It is not just the demand from local retailers that stimulates rents, but also the interest shown by premium global retailers, particularly in the fashion sector, which follow  an aggresive strategy of expanding across Europe", declared Peter Gold, Head of the CBRE Cross Border Retail Division for the area including Europe, Middle East and Africa.

Having in view that the offer of prime spaces is limited, the rent level is under pressure, given the competition between retailers.

In Central and Eastern Europe, consumer spending is growing at a pace of 4% to 6%, much above the average of the countries making up the European Union before 2004. This ongoing growth, together with the intentions of premier retailers to secure a certain market share and strengthen their name in the area, is encouraging the access of new competitors in the market.

Curierul National