European Cities Experience High Street Renaissance
- High street retail is the only commercial property sector to have fully recovered from the recession
- Growth widens from the European core to its periphery and from prime to secondary
- CEE, Germany, Portugal, Spain and Sweden tipped as hot spots for investment in 2016
Europe’s most luxurious high streets recorded another year of robust rental growth in 2015. Rents on Via Montenapoleone in Milan expanded by 41.2% in a single year, making it the fastest growing high street rental market in Europe in Q4 2015, ahead of Rome’s Via Condotti (37.5% growth) and Barcelona’s Diagonal (33.3%).
Elsewhere, smaller but sharp increases have been seen in Paris, London, Dublin, Venice, Lisbon and Madrid. As a result of this extraordinary growth, high street retail is now the only commercial real estate sector in Europe where rents on a weighted average basis are above their previous peaks and yields are below pre-recession levels.