CBRE expects luxury retail segment to pick up in Hungary
Hungary’s capital is expected to be affected by the continued worldwide sales of luxury goods, led by Chinese purchases, which are now transacted overseas, resulting in sales increases in Western Europe by 13.4%, Eastern Europe by 18%, Africa by 26% and a 5% increase in North America over the last two years, according to property advisor CBRE’s Luxury Retail 2015 report.
“Luxury retail is fuelled by high-end tourism … The completion of seven new five-star hotels in Budapest over the next two years is expected to provide a boost to the luxury retail segment. On Andrássy út, several luxury and aspirational brands including Michael Kors, Polo Ralph Lauren, COS, O’Bag and Michal Nergin have opened to fill the void created by the closing of luxury multi-brand department store Il Bacio di Stile, with more to follow in 2016,” Anita Csörgő, Head of Retail at CBRE Hungary said.
“Chinese purchasers account for 30% of the luxury spend worldwide and 70% of these purchases take place overseas, showing that the downward shift in their economy has prompted Asian consumers to rethink their purchasing habits. The advent of the new ‘anti-extravagance legislation’ in China and their consumers’ growing awareness of price differentials of up to 70% has led to many preferring to make their purchases overseas, where the prices are far more attractive,” Andrew Phipps, Head of Research and Consulting, EMEA, CBRE, said in response to the global trends.
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