Prime retail rents in Shanghai are expected to continue to rise as global retailers flock to the city.

According to James Macdonald, head of research at real estate services provider Savills China, retail rents in Shanghai will rise between three to five per cent with new entrants being the main demand driver and despite more conservative growth by incumbent retailers.

“We remain upbeat about the city’s prime retail market performance in the new year as sluggish economic growth in Europe and the US will spur more global retailers to establish presence in Shanghai,” said CBRE Research director Sam Xie.

Upbeat about the market outlook, more developers plan to open projects in the city. This year will see an additional 400,000 sqm of retail space from six projects scheduled to open including Jing An Kerry Center on Nanjing Road and International APM on Huaihai Rd.

GB