Bucharest: Cost of street rents

The rent of top street rents in Europe, the Middle East and Africa remained constant between September 2010 and March 2011, a study made by real estate consultant Colliers International shows. In Bucharest, a retailer pays rent of 75 euro/sq.m./month for a street store, while rent for a shop in a mall is 65 euro/sq.m./month, according to the study. In Budapest, rent for street areas can go up to 110 euro/sq.m. while in a mall it goes round 65 euro/sq.m.

The cheapest rents are in Sofia, where a street shop costs a retailer about 65 euro/sq.m./month as against 37 euro/sq.m./month in a mall. Rents for street areas in Madrid, Milan or Rome have recorded growths of 3% and 8% despite talks around the economies of Italy and Spain, Colliers shows.
The famous Via Condotti in Rome has known an increase of 8% of average rents, representing the most significant rent rise in Western Europe. The shortage of free areas for rent and the rising interest of luxury retailers such as Trussardi 1911 fashion house which opened its first boutique in this street March have contributed to the increase of rent,” Colliers says.

In many big commercial areas in Central and Eastern Europe, rents in the best areas have dropped in the last 6 months, landowners offering lower rent to attract international companies and considering increasing the value of the rented area on a long run.

The same thing happened in Abu Dhabi and Dubai, both cities witnessing drops of 11% of rent costs for street areas over September 2010- March 2011.

In 2011 retailer sales continue to be influenced by macroeconomic uncertainty which persists in the area and by the erosion of the purchase power, fed by stagnation of salaries and price rises, the real estate consultants say.

Provisions concerning commercial sales in the United Arab Emirates are somewhat more optimistic, economy being on the rise and consumption on a growing path, despite some debts associated with real estate development in Dubai. International trade marks continue to see the market as a target for future expansions.