Most of the world's top retail locations have remained resilient during the last 12 months, with Latin America and Asia-Pacific showing the most positive rental growth, according to Cushman & Wakefield. Around two-thirds (66%) of the 59 countries surveyed by the real estate adviser for its annual 'Main Streets Across the World' report reported prime rents either rising or remaining static over the year to June. The findings paint a brighter outlook to those of 2009, which revealed the biggest global fall in rents in the report's 25-year history.
New York's Fifth Avenue, where rents increased by 8.8%, kept its number one spot as the world's most expensive retail address, for the ninth year running. Causeway Bay in Hong Kong remained at second place. London's New Bond Street leapt two rankings, to overtake Avenue des Champs-Elysées in Paris the biggest faller in the top 10 with a 9.5% rental decrease - as the most expensive location in Europe.
The emerging markets performed strongly due to strong tourism and demand from international retailers. Brazil's Haddock Lobo street in Sao Paulo was the biggest riser globally, with rents increasing by 92%. Ginza in Tokyo, Japan, climbed from fifth in the league table last year to third this year and South Korea's Myeongdong in Seoul jumped three places from eleventh to eighth.
Of all the locations in Europe that were monitored, London's New Bond Street was the biggest riser, with a 19.4% rental increase. In Asia-Pacific, India's Linking Road in Mumbai showed the strongest growth, with rents rising by 33%. Around the world, the biggest fall in rents was in Bulgaria with a 50% drop in Alexander Batenbeg, Plovdiv, and in Alexandrovska, Burgas.
Europe as a whole registered a decline in rents of 4.5%. Ireland's Grafton Street in Dublin tumbled from eighth to thirteenth, with rents dropping by 25.8%, and Ermou in Athens, Greece, plummeted seven rankings with a 15.4% rental decline.
This year's findings reveal a clear polarization between prime and secondary locations. Secondary locations have been much more adversely affected by the fall-off in retailer demand and consequent decline in rents, as retailers move quickly to close unprofitable stores and rein in expansion.
John Strachan, Global Head of Retail, Cushman & Wakefield, said: "The aftershocks of the global economic recession are still being felt in the retail property market and the path leading from recession to recovery has been far from smooth. In the more mature markets, occupiers are expected to remain cautious and selective about the space they take. However, on the great shopping streets of the world, in cities such as London and New York, demand has continued to exceed supply and the appeti