London’s New Bond Street has overtaken the Champs Élysées to rank in the top three most expensive streets in the world, according to new research.
A survey by commercial retail estate company Cushman & Wakefield found that rents at the street have increased by 37.5% in sterling this year compared with 2016, to $1,720 (£1,312) per sq ft each year.
The company said that despite a “pause in activity in London” in the initial aftermath of the EU referendum, the start of 2017 heralded a “resurgence in leasing deals”.
Justin Taylor, head of retail EMEA at Cushman & Wakefield, said: “While challenges and uncertainties remain, Europe’s retail recovery has continued and a further strong performance is anticipated for 2018.
“Prime locations have the edge in attracting the most innovative and premium brands, and rising rents in some areas have been helped by strong tourist numbers. This includes the UK where the lower sterling has increased visitor numbers significantly and London’s premium retail offer continues to thrive despite the noise around Brexit.”
New York’s Upper Fifth Avenue remained the most expensive street globally, with annual rents averaging $3,000 (£2,289) per sq ft per year.
This was followed by Causeway Bay in Hong Kong, which saw an average rent of $2,725 (£2,079) per sq ft per year, falling by 4.7% on the previous year.
Milan’s Via Montenapoleone, where rents were $1,433 (£1,093) per sq ft each year, ranked fourth after New Bond Street, while the Avenue des Champs Élysées in Paris, where rents averaged $1,407 (£1,074) per sq ft per year, fell to fifth place.
Cushman & Wakefield surveyed 451 retail streets globally, ranking each according to cost per sq ft of operating shops in them.