Moscow now occupies in terms of rentals three out of the top five most expensive prime retail locations in Europe, namely Stoleshnikov Lane, Petrovka Street and Tverskaya, says a report by Jones Lang LaSalle, the real estate and investment specialist firm.

The report, “Prime High Street Rents in Europe,” also ranks Les Champs Élysées in Paris as the most expensive high street in Europe, followed by Stoleshnikov Lane in Moscow and New Bond Street in London.

“The prime high streets of Europe have performed relatively well over the last year and in some cases have prospered, despite turbulence in the financial markets and pressure on consumer spending,” said James Dolphin, Head of the European Retail Agency at Jones Lang LaSalle.

“In general, prime rental levels are expected to remain stable across the region as the weaker consumer spending growth in most of Europe is counter balanced by the continuing strength of occupier demand for the best locations.”

That said, strong demand from an increasingly wealthy population, a shortage of available space and a low level of transparency in Moscow mean that rental growth is expected to continue. Key cities in Greece and Turkey also saw some of the highest rental increases, with Tsimiski Street in Thessaloniki, Ermou Street in Athens, and Bagdat and Istiklal Streets in Istanbul all recording an annual growth of over 25% (mitigated in Turkey by inflation at 10%). Growth is attributed mainly to a limited supply but strong demand for units, particularly from international brands.

“Several prominent locations in mature markets, particularly Germany and The Netherlands, are also anticipated to see solid rental growth through the year, despite a projected slowdown in the economy, again largely thanks to major international brands seeking representation and a scarce supply of prime space,” explained Neville Moss, Head of European Retail research at Jones Lang LaSalle.

“Meanwhile, the outlook is less favorable for areas such as the Baltic States, where retail is concentrated within shopping centers and their economies face particular imbalance. A handful of Western European locations, are also expected to see some downward pressure on rents, most notably in Spain.”