High streets in prime cities sail out of the doldrums
The generic high streetmay be suffering from a severe case of the doldrums, but new research from Savills shows high street shops in prime European cities are hot spots for investment. Increased upward pressure on prime rents, combined with stable yields, has led to a significant increase in investor activity. London has seen the highest level of rental growth on its high streets over the past five years, up 16.4%, and the keenest yields achieved – an average of 3%. Lydia Brissy, European research director, said: “Prime high street units in core European cities are generally perceived by investors as safe havens due to the fact that they are not solely reliant on domestic consumer spending but also benefit from high levels of international tourist flows.”
LONDON +16.4% +2.6% +8.6% PARIS FRANKFURT -10% ATHENS