Commercial rents dropped 30% in Bucharest in the first 2009 trimester

Commercial rents dropped 30% in Bucharest in the first 2009 trimester against the same period in 2008, in the context where ‘prime’ rents in the retail department shrank worldwide as a consequence of the financial crisis affecting consumerist behaviour and retail sales, CB Richard Ellis (CBRE), a real estate consultancy, research shows.

Despite rents dropping 10%, New York is still the world’s most expensive retail destination: annual rents account for 1,899 dollars per square meter. This is almost a double figure than what we find in Hong Kong, the world’s second most expensive retail rent city: 975 dollars for one square meter annually. Moscow is third followed by Paris and Tokyo.

„Bucharest subscribes to the global shrinking rent trend. Commercial rents in the Capital saw a 30% drop in the first 2009 trimester against Q1 in 2008” CBRE| Eurisko head of retail Luiza Moraru said.

Moscow, Paris and London rank first for expensive retail rents in EMEA region. The threat of a reduced demand and a decreasing occupation degree lead to a shrinkage of the retail rent index EU-27 with 3% in the first 2009 quarter, 1.2% low against last year. The increase in rent rate decreased constantly at a European level, in contrast with the 5% maximum rate increase in mid-2007.

CB Richard Ellis (CBRE), one of the most important real estate services in the world, also present on the Romanian market, recorded a net 36.7 million dollars net loss in Q1 2009, while during the same time last year it was seeing a 20.5 million dollars net profit.