The Most Sought-After Streets in the City
On the iconic Preciados Street, considered one of Europe's most important commercial arteries, rental prices have reached €252.7/m²/month. This figure represents a 0.5% increase compared to the previous year, reflecting the robust demand and exclusive character of this location. Preciados remains a coveted destination for fashion and accessory brands seeking to maximize their visibility and customer flow.
Gran Vía Street, another iconic commercial axis in Madrid, has also experienced a strengthening in its rental prices, reaching a range similar to Preciados. What does this Madrid artery offer? Undoubtedly, its appeal for retailers looking to combine prestige with high pedestrian traffic.
The Physical Shopping Experience
It's interesting to observe that, despite the challenges posed by the rise of e-commerce, street-level premises in Madrid continue to demonstrate their relevance and value. The physical shopping experience, especially in premium locations, remains a fundamental component in the omnichannel strategies of many brands.
As a consequence of being the most sought-after areas, the availability of premises is scarce. This trend has not only contributed to the increase in rental prices but has also prompted some retailers to explore other locations in the city, such as Fuencarral and Barquillo streets, which offer a balance between accessibility and growth potential.
What Are the Future Forecast?
Looking to the future, prices for commercial premises in Madrid are expected to continue their upward trajectory, albeit possibly at a more moderate pace. Factors such as post-pandemic economic recovery, the return of international tourism, and the ongoing evolution of retail strategies will influence the market's price dynamics.
In conclusion, the market for street-level commercial premises in Madrid demonstrates its resilience and continued attractiveness. The physical store remains relevant for brands and their customers.
