Retail rentals in Hong Kong are nearly 50% higher than that for similar districts such as upper Fifth Avenue in Manhattan. Rents are more than four times the rate in similar areas in London and Paris, according to a report by global property advisor CBRE Group Inc. Annual retail rent in high-end shopping areas in Hong Kong averaged $4,328 ( Rs 2,40,000/-) per sq. ft. The continued demand by international luxury brands has ensured that Hong Kong has maintained its top position.
New York ranked second among the most expensive global retail markets, with prime rents averaging $2,970 (Rs 1,63,000/-) per sq. ft.
Europe’s prime retail markets followed, with London at $1,053 per sq. ft, and Paris at $1,050 ( Rs 58,000 per) per sq. ft.
The supply of prime space was tight elsewhere in the Asia Pacific region. An inflow of US retailers helped Sydney maintain its prime rent at an average of $1,018 (Rs 56,000/-) per sq. ft.
Tokyo was sixth at $895 ( Rs 49,000/-) per sq. ft , followed by Melbourne, at $851 (Rs 47,000/-) per sq. ft.
Zurich came in eighth at $822 ( Rs 45,000/-) per sq. ft . Brisbane’s mining and natural resource sectors, and growing population helped push that into the top 10 with its prime retail rents up 15% to $739 ( Rs 40,600/-) per sq. ft . Moscow rounded out the top 10 with rents at $739 ( Rs 40,600/-) per sq. ft.
The 10 most expensive cities for retailers have benefited from strong demand and modest new supply. In some markets, such as Hong Kong and London, the sky-high rents have prompted some newcomers to at other markets. For example, in London, Mayfair has benefited from those priced out of Bond Street.