Wednesday, 13 May 2015 09:48

 

Designed as an extension of Passeig de Gràcia, income is expected to double in two years

They have not yet completed work on Diagonal Avenue, but the real estate business in the renovated main route of Barcelona is fully operational. Premises that failed to attract operators a little over a year ago are now coveted by fashion brands and restoration groups. They look at the urban reform as a second chance to the commercial hub designed to extend the success of the Passeig de Gràcia.

“In two years, rents of commercial premises will double, we are looking at 100 euros per square meter,” explains Jordi Toboso, managing director of JLL for Catalunya. According to the property consultant, the current rents are around 50 euros per square meter on average, four times less than the prices paid in the Passeig de Gràcia, one of the most prestigious shopping streets in Europe. “While the Passeig de Gràcia remains exclusive for most brands, the new Diagonal is a great opportunity,” said Toboso.

According to data provided by JLL, there are now only eight units available in the section that runs between Passeig de Gràcia and Francesc Macia.

But apart from the openings planned, large distribution groups like Inditex, Mango and H & M begin to take positions.

According to data from ASCANA, 2014 was the first year in which the income of Diagonal began to rise after more than five years of depression. Last year, 18 new brands settled in the stretch between Passeig de Gràcia and Francesc Macia and the average income was 42 euros per square meter, which shot up to 80 euros and 50 euros respectively.

As Xavier Guell, director of CBRE recognizes, rents will never reach the level of Passeig de Gràcia, but strong growth is expected in the next two years. The main drawback of many buildings, he says, is the technical quality, because they were originally homes. Jordi Toboso, JLL,  a firm believer in the growth of the new Diagonal JLL, states: “In a few years we will see large operators such as Zara and H & M occupy several floors in one building.”