World's Most Expensive Shopping Streets Experiencing Slump In Prime Rents

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According to a report released by real estate adviser Cushman & Wakefield on Tuesday, over half of the world's most expensive shopping streets have experienced a slump in prime rents in 2009.

The Main Streets Across the World report showed that 54% of the 274 streets monitored in the study have seen a decline in prime rents.

The largest drop in rents, according to the report, came from Mumbai, with Colaba Causeway falling 63.5%. This was followed by Rio de Janeiro's Sao Conrado Fashion Mall, which saw a 53.4% decline. Europe's biggest loss came from Bucharest's Calea Victoriei, which saw a 48.1% drop.

"The last 12 months have been one of the most difficult periods ever for the retail sector with consumer spending and retail sales down in many markets," said John Strachan, global head of retail for Cushman & Wakefield.

Strachan added, "In the previous 12 month period, global retail markets appeared to be fairly resilient, but more recently the impact has been much more significant as the full impact of the downturn has been realized."

He noted, however, that there is some good news, in that the worst "is almost certainly now behind us."

"Economic recovery in many major markets is now underway, with key driver economies such as Germany now officially out of recession," Strachan said. "There will undoubtedly be some markets which will continue to be affected over the next year, but we expect to see a greater number move back into positive territory."

According to a report released by real estate adviser Cushman & Wakefield on Tuesday, over half of the world's most expensive shopping streets have experienced a slump in prime rents in 2009. The Main Streets Across the World report showed that 54% of the 274 streets monitored in the study have seen a decline in prime rents. The largest drop in rents, according to the report, came from Mumbai, with Colaba Causeway falling 63.5%. (Market News Provided by RTTNews)