The major international brands have focused on the big commercial streets of Barcelona and Madrid, placing these cities in the fourth and eighth places respectively of European cities with more potential for their business plan.
Record levels of tourists and affordable prices in the commercial space place the two large Spanish cities as the target of international brands. Barcelona and Madrid are in the fourth and eighth places, respectively, among the cities with the most potential for brands. The reduction of unemployment and the recovery of consumer confidence, as well as the improvement of retail index values, have favored an increase in the interest of investors and operators in the Spanish market.
Another fact that places the two great Spanish cities as an ideal destination for brands are the occupancy costs, much lower than in other European cities. The figure of occupation, which includes the payment of rents, community expenses and other taxes, is 3,477 euros / square meter per year for Madrid and Barcelona, which are affordable compared to 6,902 euros per square meter per year in Berlin. 11,600 from Rome and more than 20,000 euros from Paris and London.
By streets, depending on the profile of the firm, they prefer one area or another. The luxury is concentrated in the Paseo de Gracia in Barcelona and in the neighborhood of Salamanca in Madrid. In the case of more market firms prefer to settle in Portal del Ángel or Porta Ferrisa, in Barcelona, or in Gran Via and Preciados in Madrid
Gap, Reebok Fit Hub, Nyx, Doctor Martens and Chaussea in Madrid are among the brands interested in installing in Spain, or have just opened. And Uniqlo, Victoria's Secret, Green Vita and Funky Buddha in Barcelona. This interest is reflected in the price per square meter of commercial spaces in prime areas, which is expected to rise by 3% in both Madrid and Barcelona in 2017, compared to the flat behavior of most European markets.
Particularly relevant is the case of the Catalan capital, which is the fourth European city with more potential for international brands. Barcelona is the third European destination for international tourism, only surpassed by London and Paris. The city receives a total expenditure of visitors of 8.300 million euros per year and appears increasingly on the radar of international operators.
Despite the impetus of Madrid and Barcelona as reference destinations in the fashion business, Paris and, above all, London remain the two major referents as star locations within Europe.
The success of the British capital is due to factors such as the number of tourists it receives, as well as the average expenditure that these visitors make during their stay. London records the record of 19.8 million international tourists, with a total expenditure of 17.8 million euros between 2015 and 2016. This level of spending is 53.5% higher than that registered in the French capital and the difference is Even more pronounced when looking at the shopping section, as visitors to London tend to spend 46.7% of their total spending on purchases compared to 16.7% of visitors to Paris.
London's revenue potential and its lower occupational costs suggest that the profit margin offered by one store may be higher than another in Paris. This will strengthen their attractiveness for new international operators.
In addition, the devaluation of the value of the pound following the announcement of the Brexit will continue to boost the spending of foreign visitors in London, making its commercial real estate market more attractive to international brands.