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10 Jun, 2008 01:14

Rents soar on Moscow’s top shopping street

Tverskaya Street in the heart of Moscow has joined the list of the world's most expensive streets in which to rent retail space, after New York’s Fifth Avenue and the Champs Elysees in Paris. But the sky-high rents don't deter retailers as they know that

According to Colliers International Property Consultants, Tverskaya now commands the third highest retail rents in the world. Averaging $ 4,815 per square metre per year, it's pushed London’s Bond Street into fourth place.

Tverskaya is Moscow’s main artery, leading directly through the city centre to the Kremlin. It’s no surprise then that it’s become a prime retail location. But why have rents suddenly rocketed?

Regional Director of Colliers International, Maksim Gasiev, says it’s a question of supply and demand.

“Such an increase in rental value happened first of all because the supply on Tverskaya Street is limited. Second, Real estate development in Russia has been rapid and Tverskaya is now the main street of the entire country, pushing up demand. That is why rent here is the highest. Every retailer wants to have a shop on this street,” Gasiev said.

During Soviet times a grand redevelopment project turned Tverskaya into a household name.

Now it has maintained its brand recognition among shoppers and it is this that makes retailers pay for the location.

Anna Shiryaeva, Managing Director of Magazin Property Consultants explains the allure of the Tverskaya brand.