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Bucharest becomes 47th in top of cities with most expensive commercial areas in the world
In 2010 Bucharest ranked 47th in the top of cities with most expensive commercial areas in the world, considering the level of rents for commercial areas, on the drop by 7 seven position compared to 2009, according to a report which analyses the most expensive rents for retail locations in 59 countries, made by the real estate consulting company Cushman& Wakefield. In Romania in 12 months until June 2010 there was a drop of 15% in rents of the most expensive commercial areas, while at world level countries of Latin America and Asia Pacific recorded the highest rent increases.
The most expensive commercial areas in Romania are in Bucharest, Cluj and Timisoara
The most expensive commercial areas in Bucharest are Magheru Blvd and Victoria Avenue, where annual rent reached 777 euro per square meter in June 2010, on the drop by 18.8% and 7.1%.
Besides Bucharest the most expensive commercial areas as concerns rents are in Cluj (Memorandumului, Napoca, Eroilor with an annual rent of 454 eurosq.m.) and Timisoara (Victoriei with a rent of 418 eurosq.m.).Although the retailers’ demand for new retail areas continues to be low for all retail sectors, some retailers expand throughout the country, taking advantage of the increased rent drop of the last 18 months. From June 2009 to June 2010 there was a 15% drop lf rents in the best commercial areas, is the conclusion of specialists from Cushman& Wakefield Romania.
Rents went up by 23.5% on Fifth Avenue, New York, the most expensive area in the world
The C&W report analysed the evolution of rents for the first 269 commercial locations in 59 countries. The world classification is made on the criterion of the most expensive locations in each country considered. According to data obtained, rents for main commercial areas in 66% of the 59 countries have either grown or remained at a constant level during the year until June 2010.
Countries in Latin America and Asia Pacific recorded the highest rent growth in important commercial areas. Fifth Avenue in New York where rents grew by 23.5% maintains first, being the most expensive retail address for 9 consecutive years. Causeway Bay of Hong King ranks second while High Bond Street in London went up two positions surpassing Avenue des Champs Elysees in Paris, which had the biggest rent drop in top 10 – 9.5%, thus becoming the most expensive location in Europe.