London is top retail property market
London is the top city for international retail property and Dubai is now making an impact in this real estate sector with a fourth place entry in the latest survey into global markets.
Some 60% of the world's top retailers are attracted to London followed by Paris with 49%, New York with 47% and then Dubai with 46%, according to the report from property consultants CB Richard Ellis.
Europe's major capital cities dominated the survey's ranking of the top 10 most international retail cities, comprising seven of the 10 leading destinations. New York City, Dubai and Tokyo were the exceptions to this rule, representing their respective global regions.
Dubai's fourth position ranking, closely trailing New York, confirms its position as a new force in global retailing. Its rapid emergence as a retail hot spot can be attributed to a number of factors, according to the report. These include: the recent development boom in Dubai which created significant amounts of new retail space; the region's appetite for international brands; and the network of franchise partners which help retailers to effectively expand into this market.
Asian cities were also strongly represented in the global ranking, with Tokyo, Singapore, Hong Kong and Beijing all featuring in the top 15 most international retail cities.
Whilst primary cities, such as London and Paris, continue to attract the majority of international retailers, secondary cities such as Manchester and Lyon only draw 60% of the international retailers present in the capitals. This trend is also reflected in the US, where cities outside New York only attract 65 to 75% of the retailers present in New York, the report shows
Across all global markets surveyed, the secondary city in a market has on average 58% of the retailers that are found in the primary city. Germany however, is a market which bucks this trend, with over three quarters of all international retailers present in Berlin also represented in Munich, Hamburg and Cologne.
'Now more than ever, retailers are less concerned with markets and more with shopping populations. It is often the city and not the country which is important. Our study emphasizes this micro-level focus, showing that the expansion of an international retailer into one city does not necessarily imply they will expand across other cities in the same country,' said Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis.
'Europe's ongoing domination of the most popular retail destinations in the world is certainly a positive impact of the geo-political context of the region. The European Union is one of the great cross-border retail success stories, in that a common currency, legal platform and network of cultural and historic ties make cross-border retailing more attractive and straightforward,' he added.