Spain is internationally recognised as an attraction for renowned brands that want to establish themselves in the country. Among the main High Street thoroughfares are Portal de l'Àngel and Passeig de Gràcia in Barcelona and the streets Gran Vía, Preciados, Fuencarral, Serrano and Puerta del Sol in Madrid. The large influx of consumers and their position as tourist and shopping enclaves make these streets the most 'prime' in the country. In a series of reports, we will analyse the main shopping streets in Spain. On this occasion, we take a closer look at Passeig de Gràcia, the luxury golden mile in Barcelona and recently named the most expensive street in Spain to open a business premises.
Passeig de Gràcia is one of the main and most famous avenues in Barcelona, due to its tourist and commercial value, while serving as a showcase for important works of modernist architecture, such as the buildings of the architects Antoni Gaudí and Lluís Domènech i Montaner, declared World Heritage Sites. This avenue is centrally located in Barcelona's Eixample district, connecting Plaça de Catalunya with Carrer Major de Gràcia. The busiest stretches of Passeig de Gràcia see an average of 42,000 pedestrians a day.
Most of the retail outlets on Passeig de Gràcia belong to the fashion and accessories segment (75%), predominantly mainstream (60%), although premium retail outlets do also play a role on this street (40% of the outlets), including brands such as Moncler, Loro Piana, Carolina Herrera, Versace, Fendi, Hermès, Escada, Rolex and Tiffany&Co, among others.
Restaurants account for 8% of the current offer, with traditional Catalan restaurants alternating with fast food outlets. This is followed by the Services sector, with banks predominating. Considering the number of vacant premises, there is a 7% availability rate on Passeig de Gràcia. Considering the high number of premises on this street, we can conclude that availability is limited. Recent operators that have decided to set up on Passeig de Gràcia include Bimba y Lola, Lululemon, Hermès, Ralph Lauren, Adidas, Five Guys, Nathalie Chandler, Salsa, Lynk & Co, Etro, Hackett and Pepe Jeans, the latter two marketed by JLL. On the other hand, the Rabat store at Passeig de Gràcia 59 and Loewe, number 35, were recently refurbished.
Passeig de Gràcia is one of Spain's most notable luxury shopping areas and is of great tourist interest. The selective demand for premises by luxury retailers and regular users' desire for premium products have been more resilient to the economic climate, driving prime rents to €256/m2/month in the first quarter of 2023.
As a result, Passeig de Gràcia will be the most expensive shopping street in Spain from 2021, currently overtaking the rents on Portal de l'Àngel, traditionally regarded as the street with the highest rents. Passeig de Gràcia has experienced one of Spain's highest rent growth rates (+4%) in the last six years. Over the last year, prime rents on Passeig de Gràcia have increased by 1.5%.