Top 10 Most Expensive Retail Streets: Milan Overtakes New York

The latest Cushman & Wakefield ‘Main Streets Across the World’ report has unveiled the top 10 most expensive retail streets globally, with Milan’s Via Montenapoleone taking the top spot for the first time.

This marks a historic shift as a European street surpasses New York’s Upper 5th Avenue, which held the title for several years.

Top 10 Most Expensive Retail Streets (2024)

1. Via Montenapoleone, Milan – $2,047 psf (€20,000/sqm)
2. Upper 5th Avenue, New York – $2,000 psf (€19,537/sqm)
3. New Bond Street, London – $1,762 psf (€17,210/sqm)
4. Tsim Sha Tsui, Hong Kong – $1,607 psf (€15,697/sqm)
5. Avenue des Champs Élysées, Paris – $1,282 psf (€12,519/sqm)
6. Ginza, Tokyo – $1,186 psf (€11,582/sqm)
7. Bahnhofstrasse, Zurich – $981 psf (€9,585/sqm)
8. Pitt Street Mall, Sydney – $802 psf (€7,832/sqm)
9. Myeongdong, Seoul – $688 psf (€6,719/sqm)
10. Kohlmarkt, Vienna – $553 psf (€5,400/sqm)

Via Montenapoleone Takes the Lead

Synonymous with fashion and luxury, Milan’s Via Montenapoleone has climbed the rankings thanks to an 11% year-on-year (YOY) rent increase and favorable currency exchange rates. Retail rents on the street now stand at $2,047 psf annually, surpassing New York’s Upper 5th Avenue, where rents have remained flat at $2,000 psf for the past two years.

Robert Travers, Head of EMEA Retail at Cushman & Wakefield, commented:
“These globally iconic locations are characterized by intense competition for space and extremely limited supply. Brands, from luxury to mass market, are doubling down on their physical stores in the top locations as competition for consumer attention drives the need for a superior shopping experience and product showcase.”

Notable Movements in the Top 10

• London’s New Bond Street climbed to third, with rents increasing by 13% YOY to $1,762 psf.
• Paris’s Avenue des Champs Élysées retained fifth position, while Tokyo’s Ginza saw the highest growth at 25% YOY, narrowing the gap.
• Zurich’s Bahnhofstrasse and Sydney’s Pitt Street Mall maintained their positions, with stable rents reflecting strong local demand.

Global Retail Trends

The report highlights key trends across 138 prime retail locations worldwide:

• Global Growth: Average rents rose by 4.4% globally, with the Americas leading at 8.5%, followed by Europe (3.5%) and Asia Pacific (3.1%).
• Tourism Boost: Western European locations, such as London and Paris, benefitted from increased tourism, particularly from the U.S.
• Luxury Demand: Streets tied to the luxury sector, such as Milan’s Via Montenapoleone and Tokyo’s Ginza, saw strong demand and limited vacancy rates, driving rental increases.

Outlook for Prime Retail Streets

Prime retail streets have demonstrated resilience despite economic pressures such as inflation and interest rate hikes. Looking ahead, easing economic conditions, rising real wages, and discretionary spending are expected to drive further growth in the sector.

Dr. Dominic Brown, Head of International Research at Cushman & Wakefield, concluded:
“The performance of prime retail destinations remains robust, and we expect this trend to continue as economic conditions improve. The strength of the world’s top retail streets underlines the enduring appeal of physical retail for brands and consumers alike.”