The battle of the big brands for the wealthiest tourist drives up the m2 of Passeig de Gràcia

The overtaking was consolidated: the rental prices of commercial premises on Passeig de Gràcia have definitively left behind those of Portal de l’Àngel, a street that for many years had the most expensive leases in all of Spain. The disputes over the very scarce commercial premises of major national and international brands specializing in high-end products and mainly targeting the wealthiest tourists are driving up the price per square meter of the city’s most prestigious avenue. Portal de l’Àngel plays a different role and attracts a more local and mass audience.

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Because at this moment the world’s leading luxury brands want more than ever to open their new stores in the highest quality locations, in places that exponentially enhance their customers’ experiences and also reinforce their brand image. And the truth is that for some time now, available premises on Passeig de Gràcia have been scarce… The price per square meter of the most desired locations already exceeds 340 euros per month. These are some of the main conclusions of a study presented this Wednesday by the real estate consultancy Laborde Marcet and the ST group.

“The prime axes no longer compete only for commercial availability, but to offer visibility, brand positioning, and the ability to generate experience. The major brands seek locations that reinforce their positioning, and that explains why the most exclusive streets maintain rents much higher than the rest of the market,” says Clara Matías, head of the main commercial street studies at Laborde Marcet. And so, after those peaks of 340 euros per month on Passeig de Gràcia come the 290 of Portal de l’Àngel, the 120 of Pelai Street, the 100 of Rambla Catalunya, the 90 of Portaferrissa Street, and the 85 of Diagonal Avenue.

Luis Sans, president of the Associació Passeig de Gràcia, the merchants’ association of this axis, says that luxury stores concentrate above València Street, and that it is there where recently operations around 340 euros per square meter were made in rather small premises. “Traditionally, Portal de l’Àngel was the most expensive street in Barcelona – Sans continues –. At this moment, Passeig de Gràcia is the most demanded axis in the city. The average price is below 340 euros. But it seems this trend will consolidate. Passeig de Gràcia also offers a great gastronomic, cultural, and hotel offer, which differentiates it from many other commercial streets. Also, it is not just luxury; it also offers many affordable prices.”

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Matías, head of the main commercial street studies at Laborde Marcet, details that the overtaking was already consolidated last year with the openings on Passeig of new establishments by BOSS, Chaumet, and Carrera and Carrera, as the luxury industry can afford higher rents and being located here today has an international impact difficult to match. Thus, despite the scarcity of available premises, the number of brands dedicated to high-end products interested in setting up on Passeig de Gràcia continues to grow. The latest additions are Smeg, Tissot, Vilebrequin, Pandora, and Chloé.

This fight for the wealthiest international tourist is determining this real estate evolution. “Previously, pedestrian quantity, foot traffic, was more important, and now it is much more their spending capacity – continues the Laborde Marcet analyst –. The strong international high-income tourism especially benefits Passeig de Gràcia. The major brands want to open very special stores on this avenue. Portal de l’Àngel presents a different scenario. It is one of the busiest streets in Barcelona, but here dominate brands that offer accessible prices to the general public.”