STRONG demand has driven up the rental of high-end commercial hubs in Shanghai by 2.5 percent to 50.2 yuan (US$7.28) per square meter per day in the first quarter of this year.

Citywide, a total of 409,691 square meters of primary retail space was transacted in the January-March period with an average price of 11,385 yuan per square meter. Quarter on quarter, the transacted volume decreased by 39 percent while the average price rose by 27 percent, according to DTZ's latest research.

Areas like Nanjing Road W. will continue to enjoy strong demand from international retail brands while fast maturing high-end retail hubs such as Xujiahui and Zhangyang Road are also tempting more and more international retail brands to locate to their areas, narrowing the gap in rental cost between traditional upscale and quickly growing retail hubs. For example, Cartier and Gucci both recently opened their new outlets in Times Square on Zhangyang Road in Pudong. Mid-range new entrants sourcing locations include Topshop, Dunkin' Donuts, Haggar, Yamamay and Yamada Denki.