Prime retail real estate prices drop in Romania, Magheru boulevard slides to 52nd among shopping streets in the world

Bucharest's downtown Magheru Boulevard ranks 52nd in a chart of the most expensive real estate on shopping streets around the world. The study by real estate firm Cushman & Wakefield rated the most expensive locations in 62 countries around the world. Bucharest's Magheru has fallen six places in the rankings since last year, with rental prices for prime locations in Romania dropping slightly by 0.4 percent in the last year. The rates given for Magheru is EUR 60 per sqm, per month or EUR 720 a year. Despite improved retail sales in the last year, rent on prime locations in Romania did not follow suit and were generally lower in June 2012 than in June last year. The single exception to the trend was Strada Republicii in Braşov, which, according to Cushman & Wakefield, saw a significant rise in retail space rental prices. The report describes occupation as “stable” and notes the arrival of a number of luxury brands, with Valentino, Burberry, Escada and Emporio Armani opening stores. The report also names Bucharest's Calea Victoriei as an up and coming prime shopping real estate hotspot. “Calea Victoriei is a luxury location with potential for further development in the medium to long term, depending on the successful refurbishment of historic buildings and leasing terms provided by landlords,” reads Cushman & Wakefields Main Streets Across the World 2012/13 report. Regionally, Romania was equal to Slovenia and ahead of Lithuania (54th), Latvia (56th), Slovakia (57th), Bulgaria (59th) and Estonia, where prime retail is space going for EUR 360 a year, in 61st out of 62 countries. Like Romania, many countries in the region have seen a fall the rankings since last year. Poland and Hungary (ranked 43 and 41 ) also dropped slightly, with prices a little above EUR 1,000 per sqm per year in their prime shopping streets. Further up the table still was the Czech Republic's Wencelas Square in Prague, where the annual rent is over EUR 2,000 a year. Shopping streets in the Ukraine, ranked 23, and Russia – ranked 13 for Moscow's Tverskaya where annual rent is over 3,500 per sqm – were highest placed from the region. Up at the top of the table was Hong Kong's Causeway Bay, which knocked New York's Fifth Avenue off the top spot for the first time in 11 years. Annual rents per square meter were above EUR 20,000 for both. Europe's highest was Paris' Champs Elysee, which climbed two places to number three with annual rent of just over EUR 9,500 per square meter. Streets in London, Miln and Zurich also appeared in the global top ten. Liam Lever, liam@romania-insider.com