Retail rents in Belgium’s most prominent shopping areas have seen a 3% increase over the past year as retailers prioritize flagship and experience store concepts, according to the annual report by Cushman & Wakefield, a leading global real estate firm.
The report reveals that the Meir in Antwerp remains Belgium’s most expensive retail street, with rents rising to €1,700 per square meter annually, maintaining its 28th place in the global rankings. Rue Neuve in Brussels, another prime retail location, experienced a similar 3% uptick, with rents reaching €1,650 per square meter annually.
Strategic Retailer Focus on Prime Locations
Retailers are increasingly shifting focus toward the most optimal locations for flagship and experiential stores, a trend highlighted by Jonathan Delguste, head of Cushman & Wakefield’s high streets leasing department for Belgium and Luxembourg. “Retailers are adopting a more strategic and targeted approach,” Delguste noted, prioritizing high-impact locations over broad geographical coverage.
This strategic concentration is a key factor behind rising rental costs in prime retail areas, such as Antwerp’s Meir and Brussels’ Rue Neuve. If this approach continues to deliver improved sales performance, rental prices are expected to keep climbing.
Other important retail locations in Belgium, though not featured in global rankings, include Ghent’s Veldstraat, where rents rose from €1,450 to €1,500 per square meter annually. Meanwhile, rents in Bruges’ Steenstraat, Namur’s Rue de l’Ange, and Liège’s Vinave d’Ile have remained stable.
Europe’s Retail Market Poised for Growth
Cushman & Wakefield’s report forecasts a steady growth of 3.5% in Europe’s retail rental market this year, buoyed by increased tourist activity and the anticipated boost from the Olympic Games.
Globally, this year marks the first time a European street has topped the rankings of the most expensive retail locations. Via Montenapoleone in Milan surpassed New York’s Upper 5th Avenue, with rents surging 11% to €20,000 per square meter annually. Milan’s reputation as a luxury fashion hub continues to bolster its position as a premier retail destination.
Economic Recovery Fuels Retail Resurgence
The report suggests that global economic conditions are creating a favorable environment for retail recovery. With inflation largely under control in most markets, central banks are beginning to cut interest rates. This trend is expected to continue into 2025, potentially spurring economic growth and easing cost-of-living pressures for consumers.
As disposable income grows, consumers are likely to increase discretionary spending, benefiting the retail sector further. Delguste remains optimistic about the future of retail rents in Belgium and Europe as a whole, provided current economic and consumer trends persist.
Retailers Adapt to New Market Realities
The shift towards more strategic retail planning reflects an industry-wide adaptation to evolving market conditions. Retailers are increasingly choosing quality over quantity in their location strategies, which could reshape the commercial landscape of Belgium’s most iconic shopping streets.
With a steady influx of tourists and a more stable economic outlook, Belgium’s retail market is poised for continued growth, ensuring its prime shopping destinations remain competitive on the global stage.
