The Main Streets Across the World report routinely lists the hottest retail centres around the world, ranking them on the basis of income received. This year, Fifth Avenue in New York regained its top spot as the most expensive highstreet with an average €21,076 per square metre. It had temporarily been knocked off the top spot by the Causeway in Hong Kong.
When you think of prime real estate territory, your mind instantly goes to Fifth Avenue. While it still holds its crown in this year’s study of Main Streets Around the World by Cushman and Wakefield, there are a few interesting movements lower down the list.
One of those is the rise of Chiado in Lisbon to No.27. It’s a timely reminder of the growing emergence of Lisbon as an economic force to be reckoned with.
Leading the way for Europe is, unsurprisingly, the Via Montenapoleone in Milan which, for the first time, supplanted New Bond Street in London and the Champs Elyses in Paris as Europe’s most expensive street.
Lists like these are significant because retail is more sensitive than most to changing economic fortunes. A street’s position on this list can be affected by good and bad events. Those rising up the list can be found in some of the more prosperous areas of Europe, which is why Chiado’s emergence is so significant.
Chiado is flying the flag for Portugal and has risen two places to the 27th most expensive retail location in the world. Its success reflects the growing health of the local economy.
Lisbon has seen an influx of the global rich in recent years. Many were attracted by the lure of Portugal’s Golden Visa which offers a shortcut to residency and European citizenship for anyone willing to buy property in Portugal. While recent changes to the program placed geographical restrictions on buying property in densely populated areas, you can still find qualifying properties in prime locations such as Lisbon and Porto.
With the global rich have come new businesses and entrepreneurs who increasingly see Portugal as a good place to run businesses. Not only does the country come with the benefit of a warm climate but it also offers an excellent regulatory climate for businesses with great access to the EU market.
Money, then, is flowing into the capital—and Chiado in particular. This thriving neighbourhood is full of shops, restaurants and tourist attractions. It has become one of the must-see areas of the capital with a collection of high-end shops.
Rent prices on the main street in Chiado, Rua Garret, have been rising for the last ten years. It currently stands at around €1,400 per square metre.
It is becoming one of Europe’s up-and-coming retail areas and showcases Portugal’s economic success.
Retail is an extremely useful economic indicator. It is highly sensitive to good and bad economic events. That Chiado is rising up a list of the world’s most expensive highstreets is an indication of its growing status among high-net-worth and wealthy individuals.
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