The London shopping hotspot now more expensive than Hong Kong

New Bond Street’s move to number three on the list will be seen as a sign that luxury retailers are still willing to spend big to take space in London.

That’s despite concerns that demand for designer goods in Britain had been hit by the end of tax-free shopping.

Rishi Sunak scrapped VAT-free shopping for tourists in the wake of Brexit. The scheme is still available for overseas visitors to the EU, sparking concerns that cities including Paris and Barcelona have been seeking to draw wealthy tourists away.

However, Duncan Gilliard from Cushman & Wakefield said retailers had “jumped on” the chance to land store space on New Bond Street, which is also more expensive than Avenue des Champs Élysées in Paris.

He said there had been a race for space on the London shopping street following the exit of some brands during the Covid pandemic. This has resulted in a shortage of sites and higher rents.

It will also rebuff claims that the UK is no longer a major luxury hotspot. When Mulberry closed its store on New Bond Street in 2023, it said the store was “unviable” following the end of tax-free shopping.

However, retailers have more recently been spending to secure top locations on Britain’s most high-end high street.

In early 2023, luxury giant Kering struck a deal to pay a record level of rent for a new YSL store on Bond Street. It struck a deal to pay £13m a year for the six-storey store.

At the same time, retailers have been scaling back investment in stores in Asia, amid a downturn in spending in the region.

In September, it emerged that Tiffany was planning to shrink its flagship store in Shanghai and Mulberry earlier this week said it would be looking to close some of its loss-making stores in Asia.