London remained the retail market leader in the EMEA region for 2016, according to a new report by real estate advisor Colliers.
Strong consumer spending, the largest number of shop openings, and a 48% year-on-year rental growth in central London last year helped make the city Europe’s top-performing market.
However, the forecast for the UK was mixed, with Colliers forecasting that “significant increases in occupational costs in 2017, as a result of the rating revaluation and an anticipated rise in inflation, are likely to curb any further rental growth over the coming year.”
The overall EMEA region presented a positive picture, reporting the third consecutive year of consumer and retail spending growth in Europe. Luxembourg recorded the highest retail spending growth (+14%), followed by Romania (+13.3%). In contrast, the UK reported 5.5% growth.
Retail spending for countries in the EU is expected to increase by 2.2% in 2017.