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The Main Streets Across The World report by Cushman & Wakefield analyses the world’s most expensive shopping streets based on prime rents.
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Via Montenapoleone in Milan tops the ranking of the world’s most expensive shopping locations for the first time, surpassing Fifth Avenue in New York.
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New Bond Street in London surpasses Tsim Sha Tsui in Hong Kong, reclaiming its top 3 status.
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Rents increased in 79 of the 138 locations analysed, falling in just 19, with a global average rent growth of 4.4%. Chiado ranks ninth in the Top 10 rent increases worldwide, with an 8% rise.
Via Montenapoleone in Milan, where rents have increased by nearly a third over the past two years, has surpassed Fifth Avenue in New York to be crowned the world’s most expensive shopping location, according to the 34th edition of the Main Streets Across The World report by Cushman & Wakefield (NYSE: CWK). Chiado in Lisbon remains the most expensive location in Portugal and again features in the Top 30 most valuable shopping zones globally, despite dropping one position from 2023 to 30th place in the global ranking.
This is the first time a European street has led the global ranking in the consultant’s flagship retail report. Synonymous with fashion and luxury, Via Montenapoleone has been climbing the rankings in recent years, reaching second place in 2023. Rents increased by 11% to €20,000/m²/year over the past 12 months, while rents on Fifth Avenue (€19,537/m²/year) remained stable for the second consecutive year.
In addition to strong retailer demand in a context of limited supply, Via Montenapoleone also benefited from the euro’s appreciation against the US dollar. London’s New Bond Street surpassed Hong Kong’s Tsim Sha Tsui, taking third place despite positive rental growth in the latter.
In Portugal, prime rent in the Chiado area reached its historical peak, with values around €1,620/m²/year, placing this shopping zone in ninth place in the global Top 10 rent increases, with an 8% year-on-year rise. Over the past two years, Chiado has seen a high volume of new openings, totalling over 5,800 m² of usable area in about 50 new openings. More than half of this area corresponds to the catering sector, followed by fashion with 20%.
According to João Esteves, Partner and Director of Retail Agency at Cushman & Wakefield Portugal: “The position Chiado occupies, both in the global ranking and in the Top 10 rent increases worldwide, reflects the enormous demand from brands for top locations. In Chiado and other prime locations in Portugal, especially in Lisbon and Porto, the high occupancy rate and low turnover ultimately justify this price increase, which the market accepts with some naturalness, according to what we have been observing.”
Robert Travers, Head of EMEA Retail at Cushman & Wakefield, said: “These iconic global locations are characterised by intense competition for space and an extremely limited supply, even under the current challenging retail market conditions. Brands, from luxury to mass market, are doubling down on their physical stores in top locations, as the battle for consumer attention drives the need to provide excellent shopping experiences and product displays. While e-commerce plays an important role in omnichannel strategy, it is through the physical embodiment of the brand that customers connect. As a result, vacancy rates remain exceptionally low, reflecting the rents that retailers are willing to pay to secure and maintain their space.”
The competitive pressure for limited space has led to rent increases in 57% (79) of the 138 locations analysed, declines in just 14% (19) of those locations, and stability in the remaining 29% (40). This resulted in a global average rent increase of 4.4%. The Americas was the best-performing region, with 8.5%, driven by a nearly 11% rent growth in the US—more than double the 5.2% recorded last year—followed by Europe and Asia-Pacific, with 3.5% and 3.1%, respectively. Rents in the 138 locations are now, on average, nearly 6% above pre-pandemic levels.
Most major retail destinations have weathered the storm driven by rising interest rates to curb inflation in 2022 and 2023, which led to a rapid increase in the cost of living, lower consumer confidence, and slow economic growth. Retail is now benefiting from gradual interest rate cuts, economic recovery, easing cost-of-living pressures, and real wage increases.
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