London has also experienced a strong resurgence. While currency strengthening has helped in the global rankings, strong rental growth in local currency has been the primary factor. New Bond Street, Oxford Street, and Regent Street all recorded double-digit rental growth, with Covent Garden very close behind. Several trends are at play, founded upon an enduring desire from retailers to establish a presence in the city. Demand has lowered vacancy rates to around 5%, with public realm investments boosting key streets as prime retail spots. Luxembourg City was the only European market to record a decline over the year. Demand for space has slowed recently, resulting in a 10% decline in rents though they are expected to stabilise in the near term. The picture in Asia Pacific is arguably the most mixed of all three regions. Headline growth of 2.1% hides a range of different trajectories. The standout performers in the region have been the Tier 1 cities in India, led by the Galleria Market precinct in Gurgaon, which recorded an impressive 25% rent growth over the past year. Support was also provided by Connaught in New Delhi and Kemps Corner in Mumbai where rents grew 14% and 10%, respectively. Such growth reflects the premiumisation of retail across India, driven by the rapid rise in household wealth, especially amongst the most affluent households. Retailers are actively seeking to capitalise on the opportunities that this affords. In Tokyo, robust rent growth was recorded in Ginza and Omotesando, rising by 10% and 13%, respectively, while rents remained flat in Shinjuku. More modest growth was recorded for Orchard Road in Singapore and Sydney’s Pitt Street Mall, though both are notable given rents have been largely flat in both locations over recent years. Economic headwinds across Greater China and parts of Southeast Asia had a dampening effect on rents. In the Chinese mainland, subdued domestic consumption has kept inflation in check, while weak tourism in Southeast Asia has compounded challenges, further exacerbated by wider economic uncertainty. Hanoi experienced the steepest declines over the year of almost 7%.
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CUSHMAN & WAKEFIELD
MAIN STREETS ACROSS THE WORLD 2025
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