Grafton Street in Dublin is the 15th most expensive street in Europe to rent a property on, and the 57th most expensive globally, according to a new study.
The Main Streets Across the World report, compiled by the estate agency Cushman & Wakefield, tracks 451 top shopping streets around the world, ranking them by their prime rental value.
It said Grafton Street had seen a near 10 per cent jump in rent in the past 12 months, with "healthy demand" from new entrants, including & Other Stories, Victoria's Secret and Urban Decay. Average rent per square metre was put at €3,653, ahead of Rue du Rhône in Geneva, East Oak Street in Chicago, Passeig de Gràcia in Barcelona, and Calle de Preciados in Madrid.
The most expensive shopping street was Upper Fifth Avenue in New York, where the average rent per square metre was €28,262, followed by two Hong Kong locations, Causeway Bay, at €25,673, and Tsim Sha Tsui, at €23,776.
London’s New Bond Street, where the rent was €16,200 per square metre, overtook Via Monte Napoleone in Milan (€13,500) and Avenue des Champs-Élysées in Paris (€13,255) as the most expensive retail street in Europe.
Limited availability of high-quality space on both Grafton Street and Henry Street, on the other side of the River Liffey in Dublin, was encouraging retailers to explore neighbouring streets, according to the report. It also noted that rental growth in Cork, Limerick and Galway has been "somewhat more subdued" than in Dublin and that the euro's strength against the pound was driving Irish consumers across the Border to shop.
Karl Stewart of Cushman & Wakefield Ireland said: “Overall shop rents on Grafton Street have seen rental growth of 9.8 per cent in the past year, which could be considered modest in comparison to some other European cities. In Dublin we are forecasting continued growth over the short term, albeit at more modest levels.
“We are seeing the revitalisation of the streets surrounding Grafton Street, which will only enhance the vitality and attractiveness of the city-centre offering and will further strengthen our two prime streets.
"Henry Street has also experienced growth over the past year, with new additions to the street, including a flagship Elverys. There are also new store openings in negotiation for early 2018."
The report's lead author, Darren Yates, said: "Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world.
“Premium retail destinations, including New York’s Upper Fifth Avenue, Hong Kong’s Causeway Bay and London’s New Bond Street, are highly sought after by international brands seeking to create engaging retail experiences that offer something new and exciting.
“The most innovative retailers are combining their online and physical platforms to create a seamless omnichannel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”
