Rising Rents in London’s Diamond District Squeeze Jewellers

(IDEX Online News) – Rents in London’s Hatton Garden Diamond District are rising, as the area struggles to recover from the 2015 Easter weekend multi-million pound heist, according to a report on Reuters.

The area, which has been dominated by diamond jewelers for more than a century has been affected by reduced footfall, online competition and rocketing rents. Some estimates suggest that some rents have doubled in the last three years from £35 ($52) to £70 ($103) per square foot. Even giant diamond producer De Beers has moved from its nearby Charterhouse Street headquarters – largely as a result of parent company Anglo American’s attempts to cut costs.

According to the Reuters report, online retailers such as Blue Nile and 77Diamonds provide consumers with a price point from which to negotiate in Hatton Garden, where higher overheads make their prices tough to match. Traditional jewelers have also been slow to adapt to the online market, which includes a website through which it is not possible to carry out transactions.

Although steps have been taken to safeguard jewelry businesses, including a push for planning requirements that oblige landlords to provide space to jewelers at below market rents, demand from diverse companies such as from the media and tech sectors are pushing prices up.

In May, the jewelry sector, through the Hatton Garden Business Improvement District (BID) launched a £2.5 million ($3.7 million) campaign to revitalize the area with better marketing, including to Chinese tourists, and a facelift.