Milan’s Via Monte Napoleone has beat out New York’s Fifth Avenue to become the world’s most expensive shopping street, marking the first time a European city has topped the rankings.
Rents on the street, situated in the heart of Italy’s financial capital, jumped 11% over the past 12 months to $2,047 per square foot, or €20,000 ($21,094) per square meter, as demand outstripped supply, according to a report released Wednesday by real estate group Cushman & Wakefield.
By comparison, rents on Upper Fifth Avenue, which covers 49th to 60th streets, remained flat for the second consecutive year at $2,000 per square foot.
Beyond the top two spots, London’s New Bond Street overtook Hong Kong’s Tsim Sha Tsui to take third place, with rents coming in at $1,762 per square foot. The iconic Avenue des Champs Élysées in Paris came in fifth place at $1,282.
Via Monte Napoleone “is very short compared to Fifth Avenue, New Bond Street or Champs Élysees,” helping to drive rents higher, said Thomas Casolo, Cushman & Wakefield’s head of retail for Italy. He sees room for further rent increases as result. “The space is very scarce,” he told CNN.
Now in its 34th year, the report tracks rents in 138 leading retail destinations globally. These locations face high demand for space and limited supply, even in an otherwise challenging retail market, according to Robert Travers, head of retail for Europe, the Middle East and Africa at Cushman & Wakefield.
Luxury and mass-market brands “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,” he said. Vacancy rates are “exceptionally tight” as a result, translating into costly rentals.
In April, Gucci parent Kering paid €1.3 billion ($1.4 billion) to acquire a building on Via Monte Napoleone from a subsidiary of Blackstone. Chanel and Gucci have also opened new locations on the strip in the past year, which counts Hermès, Versace, Cartier, Bottega Veneta and Celine among its other residents.
The developments reflect a wider boom in luxury tourism in Milan, which hosts one of the world’s major annual fashion weeks, as well as a Design Week focused on furniture and interior design.
Many high-net worth individuals have also relocated to the city, lured by simplified migration rules and generous tax incentives, according to a report this year by Henley & Partners, which helps the wealthy migrate.
The world’s 10 most expensive shopping locations, by rent per square foot, according to Cushman & Wakefield:
1. Via Monte Napoleone, Milan
2. Upper Fifth Avenue (49th to 60th streets), New York
3. New Bond Street, London
4. Tsim Sha Tsui, Hong Kong
5. Avenue des Champs Élysées, Paris
6. Ginza, Tokyo
7. Bahnhoftstrasse, Zurich
8. Pitt Street Mall, Sydney
9. Myeongdong, Seoul
10. Kohlmarkt, Vienna
