New Bond Street rents the dearest in Europe

Rents also grew faster there over the last year than on any other shopping thoroughfare in the world.

The home of Cartier, Chanel and Louis Vuitton — which opened a new store there in the spring — has leapfrogged the Champs-Élysées in Paris as the continent's dearest shopping space per square foot.

New Bond Street rents rose a staggering 19.4% to £536 ($836) per square foot over the last 12 months acording to retail estate agent Cushman & Wakefield.

That compares with the world's most expensive shopping street, New York's Fifth Avenue, where rents rose by 8.8% to $1850 a square foot.

Peter Mace, head of Central London Retail at Cushman & Wakefield, said: "New Bond Street remains one of the most sought after locations in the world for luxury brands and, due to the significant imbalance between supply and demand, it continues to witness significant rental growth.

"The recent letting of 169 New Bond Street to Piaget represented a record rent for the street with the new tenant also contributing a significant premium to secure vacant possession.
There were four under-bidders for the store.

"This trend is likely to continue for the foreseeable future on the basis that there are still a large number of retail requirements that remain unsatisfied."

The highest rents within shops — for the immediate front area with exposure to the street, known as "Zone A" — rose to £925 per square foot per year on New Bond Street.

He said London had overtaken Paris because retailers were showing greater desire for smaller premises rather than the massive stores which line the Champs-Élysées built in former banks and hotels.

Champs-Élysées rents actually fell 9.5% over the last year to the equivalent of $793 a square foot. But agents believe it could be in for a revival with H&M, Abercrombie & Fitch and Tommy Hilfiger all planning to open there and space beginning to dry up.