Retail rental: Hong Kong costliest, Budapest “bottomed out”
US-based real estate services provider/investement firm CBRE Group released a report yesterday on international retail rental rates, showing Hong Kong to be the world’s most expensive city in the category at average cost of €35,756 per square meter in the second quarter of 2013. New York finished in a distant second at an average rate of €25,199 per sqm per year.
For the first quarter, CBRE showed the two cities averaged out at €36,351 and €24,994, respectively.
Hungary’s rate checked in at about €960 per square meter, a figure just lower than Warsaw’s (€1,080) and marking a slight decline from marked stability at around €1,020 shown for the past several quarters.
CBRE Budapest Head of Retail Anita Csörgő commented that, “Due to the fact that consumption and retail turnovers are starting to increase slightly this year and the lack of new supply coming into the market, I truly believe that rents have bottomed out, especially in class B and off-A locations, and that we will be seeing increases starting from 2014.”
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