Paseo de Gràcia regains its throne as the most expensive street in Spain for luxury brands, according to data collected by the consulting firm Savills, driven by the recovery of international tourism after the end of the pandemic, which has placed the average income of its premises at 245 euros/m2/month, above Serrano street, in Madrid, where they cost 235 euros.
With the covid, the Barcelona avenue had 10.2% of its premises empty in 2021, a rate that has now returned to 4.9%. And at the same time, rents have risen, which fell by 8% in 2020 but now once again exceed 2019 levels after an increase of 4.7% in the first half.
Alicia Corrales, associate director of the consultancy's commerce studies area, explains that Passeig de Gràcia recorded the opening of seven luxury stores in 2022, including Zimmerman, which enters the city, and Etro, Eres and Rolex, which They have moved. Other big brands have already taken advantage of the increase in vacant stores caused by Covid to improve their locations, especially Armani, Tiffany and Hermés.
After Passeig de Gràcia, the mecca of luxury in Spain is the “golden mile” of the Salamanca neighborhood of Madrid, which also registered 7 openings and includes part of Serrano Street and Ortega y Gasset Street, less busy and with high rents. 170 euros/m2/month.
After these streets, the Spanish locations preferred by luxury brands are Puerto Banús, Ibiza, Paseo del Born in Mallorca, Calle Colón in Valencia, Larios in Málaga, Seville's Calle de Tetuán, and Gran Vía in Bilbao.
According to Savills, luxury stores in Spain are concentrated in the fashion and accessories sector (65%) and jewelry and watches (29%).
The rise in interest rates has marked the sale of premises in the luxury streets of Barcelona and Madrid, and only one sale has been closed, on Serrano Street, 30 in Madrid, due to the owners' refusal to lower prices. . In Barcelona, the last sale, Paseo de Gràcia 97, closed in 2020. “The scarcity of available space and the fact that owners of luxury premises see their assets as a safe haven make transactions in these areas very scarce,” Corrales acknowledges. Returns are now around 4% but “local family offices compress returns because they have a long-term view of the asset,” which is why they are willing to pay higher prices than funds.
