The most expensive shopping street in the world

On November 20, real estate firm Cushman & Wakefield released its 34th annual report on the world’s top 138 retail locations. Accordingly, the leading position in rental prices this year belongs to Via Monte Napoleone street in Milan – the financial center of Italy. This is the first time a European location has held this position.

According to reports, rental prices here have increased 11% in the past 12 months, to 20,000 euros (21,094 USD) per square meter, due to demand exceeding supply. Meanwhile, the rental price at Upper Fifth Avenue (USA) – the leading location for many years – has remained unchanged for the past 2 years at 19,537 euros per square meter.

In addition to the change in the first two positions, New Bond Street (London) also surpassed Tsim Sha Tsui (Hong Kong, China) to third place with a rental price of 17,210 euros per square meter. Champs Élysées Avenue (Paris) ranked 5th with 12,519 euros per square meter.

Thomas Casolo – Cushman & Wakefield’s retail director in Italy, said that compared to Fifth Avenue, Via Monte Napoleone is very short, pushing up rents. He forecasts that prices here will increase further, due to scarcity of space.

Ho Chi Minh City ranks 14th on this list. The rental price at Dong Khoi Street is 3,594 euros per square meter, down 6% and one level compared to last year.

Robert Travers – Retail Director for Europe, Middle East and Africa at Cushman & Wakefield, commented that the locations in the report are facing increased rental demand, while supply is limited. Both premium and budget brands “are increasing their presence in top locations, driven by increased competition”.

Customers increasingly demand an enhanced shopping experience and want to show products in person, Travers explains. The rate of vacant premises is therefore “very low”.

In April, Gucci’s parent company Kering paid 1.3 billion euros ($1.4 billion) to buy a building on Via Monte Napoleone. Chanel and Gucci also opened new stores on this street in the past year. There are also the presence of Hermès, Versace, Cartier, Bottega Veneta and Celine.

This development also shows the boom in luxury shopping tourism in Milan – which hosts one of the world’s largest fashion weeks every year. Another report this year by immigration consulting firm Henley & Partners also shows that many wealthy individuals have settled in this city, due to its simple residency regulations and generous tax incentives.