Milan’s Via Montenapoleone has made history by surpassing New York’s Upper Fifth Avenue to become the world’s most expensive shopping street, marking the first time a European street has claimed the top spot in Cushman & Wakefield’s annual ranking of the globe’s most expensive retail destinations. This prestigious ranking, now in its 34th year, is based on headline rents and serves as a key indicator of the most sought-after addresses for high-end brands. Via Montenapoleone, a mere quarter-mile-long street, is renowned for its concentration of luxury fashion brands like Versace and Prada. Its rise to the top is attributed to an 11% increase in rents over the past year, reaching $2,047 per square foot annually. This surge, coupled with the euro’s strengthening against the dollar, has solidified its position as the ultimate destination for luxury shopping. According to tax-free shopping firm Global Blue, the average shopper on Via Montenapoleone spent a staggering €2,500 per purchase between August and November 2024, the highest average receipt globally.
Upper Fifth Avenue, which previously held the top position, now ranks second, with rents remaining steady at $2,000 per square foot annually. This iconic stretch, spanning from 49th to 60th Street, continues to be a magnet for high-end retailers and global shoppers. However, its rental prices have plateaued for the second consecutive year, indicating a shift in the global retail landscape that favors European destinations. Meanwhile, London’s New Bond Street has climbed to third place, with rents at $1,762 per square foot, surpassing Hong Kong’s Tsim Sha Tsui, which now sits in fourth place at $1,607 per square foot. This reshuffling highlights the evolving dynamics of luxury retail, with European destinations gaining momentum and Asian markets experiencing a slight decline in their dominance.
The ranking also reveals the resilience of luxury retail despite broader economic challenges. Robert Travers, Head of EMEA Retail at Cushman & Wakefield, notes that these iconic shopping destinations are characterized by fierce competition for limited space and extremely high rents. Brands, ranging from luxury to mass market, are increasingly prioritizing physical stores in prime locations to create exceptional shopping experiences that captivate consumer attention. While e-commerce continues to play a role in omnichannel retail strategies, the physical presence of a brand remains a critical factor in building customer connections and loyalty. As a result, vacancy rates in these elite shopping districts remain exceptionally low, driving up the rents that retailers are willing to pay to secure and retain their spaces.
Beyond the top four, Paris’s Avenue des Champs Élysées holds onto fifth place with rents at $1,282 per square foot, though Tokyo’s Ginza district is closing the gap with a remarkable 25% year-on-year increase, reaching $1,186 per square foot. Zurich’s Bahnhofstrasse follows in seventh place at $981 per square foot, while Sydney’s Pitt Street Mall, Seoul’s Myeongdong district, and Vienna’s Kohlmarkt round out the top 10. These rankings underscore the enduring appeal of these iconic streets as global shopping destinations, where the blending of luxury, history, and culture creates unparalleled retail experiences for discerning consumers.
The rise of Via Montenapoleone to the top of the list reflects Milan’s growing prominence as a global fashion capital and a hub for luxury retail. The street’s boutique-lined cobblestone thoroughfare is not just a shopping destination but a symbol of elegance and sophistication, attracting high-spending international clientele. The 11% increase in rents highlights the strong demand for space in this exclusive district, driven by both established luxury brands and emerging players seeking to establish a presence in one of the world’s most prestigious shopping areas. Furthermore, the euro’s appreciation against the dollar has made Via Montenapoleone even more attractive to international retailers and shoppers, contributing to its meteoric rise in the rankings.
Looking ahead, the competition for prime retail space in these elite shopping districts is expected to remain fierce, driven by the enduring allure of physical stores as brand embassies. As consumer expectations for immersive and memorable shopping experiences continue to evolve, these iconic streets will remain at the forefront of global retail, setting the standard for luxury and exclusivity. The interplay between shifting economic conditions, currency fluctuations, and consumer behavior will undoubtedly influence future rankings, but for now, Via Montenapoleone stands as a testament to Milan’s status as a beacon of luxury retail.
