By commercial rental prices, the best-known street in Zagreb is among the most expensive in the world.
Ilica, one of the longest streets in Zagreb, known for its shops and cafes, is the 41st most expensive street in the world with regards to the commercial premises rental rates, reports Poslovni.hr on November 16, 2017.
The annual rent per square metre costs on average 840 euros, which is more than last year, and Ilica progressed by two positions in the rankings. The 29th annual report on the rental prices for commercial premises in the most attractive streets in the world was drafted by the US real estate company Cushman&Wakefield.
President of the Zagreb Guild of Trades and Crafts Antun Trojar warns that the rental prices are mostly most affected by the ownership factor.
“Lease prices in buildings owned by the state or the town authorities have been lowered several times, and this is an element which is beneficial for craftsmen and entrepreneurs. However, in privately owned buildings and properties whose legal status is unresolved, the decision on the price of a lease is determined by the market conditions,” he said.
The Colliers consulting house explained what affects the average price. “The section from Ban Jelačić Square up to Frankopanska Street is dominated by world famous brands. Due to the high demand and attractiveness of the location, the average rental price is higher, and similar trends can be seen in other parts of the world as well. The western section of Ilica and the side streets are less attractive, which explains lower prices,” says Olgica Macek from Colliers.
The most expensive rental space in the world can be found in New York, where it costs 28.262 euros per square metre to rent commercial premises on the Fifth Avenue. As for Europe, the most expensive street is New Bond Street in London, where renting a square metre of retail space will set you back 16.200 pounds per year.
In neighbouring countries, Knez Mihajlo Street in Belgrade is at the 38th position with an average price of 1,020 euros a year, while Čopova Street in Ljubljana is at the 44th place, with an annual rent of 720 euros.
Translated from Poslovni.hr.