Skip Ribbon Commands
Skip to main content



The epitome of luxury: Paris retail property strikes gold

Growth in the sector propels rents and spills into new territories

Paris, 23rd July 2013 - Going against the tide of the turbulent global economy, global tourism and luxury goods sectors are thriving against a backdrop of the economic crisis. In its latest Pulse report, Jones Lang LaSalle highlights Paris as the epicentre for European luxury retail investment.

“In our Destination Europe 2013 report, Jones Lang LaSalle revealed that Paris can command the highest rents for international retailers, followed by Zurich and London. Paris continues to attract the biggest international and national brands that inevitably look to the city to open flagship stores, in particular the premium and luxury brands.” Says James Dolphin Head of EMEA Retail.

High demand from luxury retailers

Demand for space in the Parisian Golden Triangle (bounded by the Avenues des Champs-Élysées, George V, and Montaigne) is always high, and supply almost non-existent. Rental values typically paid by the luxury sector have almost doubled in 18 months on the famous Avenue des Champs-Elysées, reaching €18,000 (zone A) reports Jones Lang LaSalle.
"Prime" rental values are working their way up to €9,000 on Avenue Montaigne and to €7,500 on Rue Saint-Honoré, with Armani, Fendi and Qela joining the likes of Dior and Chanel this year.

The luxury sector is developing at a pace, sustained in particular by the emergence of the BRICS countries (Brazil, Russia, India, China and South Africa) contributing to the growth of this industry.

Interest in the finest arrondisements from investors, particularly foreign investors, continues unabated. 

There have never been as many acquisitions on the Champs-Elysées as during the past two years. Numbers 52 (Virgin) and 116 bis (Lido) were purchased in 2012 by the Qatar Investment Authority (QIA). In 2013, no. 118 (Mercedes-Benz) was purchased by Pramerica and no. 76-78 (Levi's) by AG Real Estate. These investments totalled more than one billion euros between 2012 and mid-2013,” explains Sophie Benaïnous, Research Manager at Jones Lang LaSalle.
New luxury areas emerge
With the Golden Triangle at capacity, opportunities to capitalize on luxury demand are emerging in new districts and in areas that are expanding or strengthening their high-end positioning.

On the Right Bank, is the Haussmann/Opéra district. The area is undergoing significant change to upmarket its retail supply with Cartier, Tag Heuer and Omega due to open their gold-plated doors in 2013/14. Printemps has been turning resolutely towards the luxury sector and the announcement of its takeover by the Qataris will certainly only strengthen this positioning. Typical rental values here reach €7,500.
On the Left Bank, the district of Saint-Germain-des-Prés has also seen a strengthening of its luxury retail supply over the past two to three years with the arrival of Ralph Lauren’s flagship store and Hermès. Unlike the Haussmann/Opéra district, this is a segment that is driven more by a wealthy local clientele and by tourists familiar with the area. Nonetheless, rents have increased and are now trading at €5,500 for the best sites.
Sophie Benaïnous, concludes: “The luxury sector adapts well and will find business wherever it is. Luxury brands are now going further still and are looking to leave the streets of Paris to invest in shopping centres in the next few years. This diversification is directly inspired by the malls of the emerging countries, the successful feedback from which has encouraged the luxury brands to invest in this new shopping environment.”