Dublin's Grafton Street is not only Ireland's most desirable address; it now ranks sixth, in the world, as the most expensive area to rent property.

Grafton Street, proceeded only by New York's Fifth Avenue, Paris's Champs Élysées, the Tverskaya in Moscow and London's Bond and Oxford Streets, commands rents of €605 per square foot.

The Dublin address outranked internationally acclaimed shopping streets in Hong Kong, Los Angeles and Tokyo.

The index, published by Colliers International, follows a huge rental cost increase across the Irish capital.

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The increase has resulted in some rents rising by over 100%. Bewleys Café has reportedly seen rents inflate from €750,000 to almost €1,475,000 per annum, a 93% increase. McDonalds in the Fair City is also looking at a rental rise said to be around 120%, bringing last year's cost of €520,000 to more than €1.1 million.

Independent traders in the area are also feeling the pinch. Not able to sustain the same rate rises as their multi-national neighbours, many are finding trading difficult.

Weir and Sons Jewellers' Managing Director David Andrews has said Grafton Street's advantageous location and cachet means it is unlikely to suffer from any slowdown in the rental market.

"Even when there's isn't a boom, there's a good business. I feel Grafton Street is strong enough to withstand the economic slowdown at the moment," he said.

However, David Potter from Savills HOK estate agents said such indices on densely commercial areas can portray a false impression, due to the lack of comparison, with regards to length of the street, rates and general consumer spending power.

(PR/JM)