Milan, the fashion capital, has done it. Via Montenapoleone is now the most expensive luxury shopping street on the planet. Yes, even Upper 5th Avenue in New York had to bow down to the 20,000 euros required per square meter of our most glamorous street. This unexpected surpassing was decreed by the 34th Main Streets Across the World report by Cushman & Wakefield, which has just released data on 138 locations around the globe.
A triumph made in Italy, for the first time, in fact, a European city dominates the world ranking. Milan is not content with being the fashion capital: it is now also the most expensive luxury capital. In short, the high-fashion shops flaunting sparkling windows are more than ever synonymous with an investment that empties the wallet.
But not only Milan, this year dizzying numbers are being recorded throughout Europe. We are talking about Váci Utca, the shopping street in Budapest, which has seen a crazy 27% increase in rental rates. Regent Street and New Bond Street in London have seen increases of 16% and 13%, but the 300 dollars more for New Bond Street are not enough to challenge Montenapoleone. Yes, because Milan not only has the highest price but is also the most stable among luxury streets. To such an extent that, outside the two exceptions of Riga and Zagreb, where rates have fallen by 3% and 7% respectively, the rest of Europe is all a triumph of growth. Thanks also to the influx of tourists, especially Americans, and the attraction of the Olympic Games, luxury has never had so much appeal.
In Asia, the most dynamic area of the year has been India, with a 32% jump in rates in Bengaluru (Indiranagar 100 Feet Road). The growth in rental rates has been reflected in other Indian cities, such as Mumbai and Pune, where prices have increased by over 10%. It is now clear, India is forcefully entering the luxury retail market, ready to compete with European and American capitals.
But the challenges Asia poses to Europe do not stop here. In Japan, locations in Tokyo such as Ginza and Omotesando have seen incredible growth, with a surprising +25% in a market that seemed stagnant.
Looking at the rest of the world, Miami stands out for a 67% growth in the Design District. The rental rate has skyrocketed to 500 USD per square meter per year. A demand for luxury that shows no signs of slowing down, even surpassing New York’s Upper 5th Avenue.
The global economy continues to recover. Central banks are lowering rates, inflation seems to be under control and, with a forecast of global growth of 2.6% for 2024, the luxury market is preparing for a further rise. Despite the war against inflation, it seems that consumers have finally found their smile again, ready to spend without worries. Although at this point, we may have to decide whether to continue buying designer bags or simply look at our bank account and make sadder but wiser choices.
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