For the first time, a European city has topped the list of the most expensive shopping streets in the world, with Milan’s Via Monte Napoleone surpassing New York’s Fifth Avenue.
According to a recent report by real estate firm Cushman & Wakefield, rents on the street, which is located in the center of Italy’s financial capital, increased 11% over the previous 12 months to $2,047 per square foot, or €20,000 ($21,094) per square meter, as demand exceeded supply.
In contrast, rents on Upper Fifth Avenue, which spans the 49th through 60th streets, stayed at $2,000 per square foot for the second year in a row.
With rents of $1,762 per square foot, London’s New Bond Street surpassed Tsim Sha Tsui in Hong Kong to take third place. Fifth place went to Paris’ famous Avenue des Champs Élysées, which cost $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. “The space is very scarce,” he said.
The report, which is in its 34th year, monitors rents in 138 of the world’s top retail locations. 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.
Mass-market and luxury brands “are doubling down on their physical stores in the top locations, driving the need for a superior shopping experience and product showcase due to competition for consumer attention.” As a result, rental prices are high due to “exceptionally tight” vacancy rates.
In April 2024, Gucci parent company Kering purchased a building on Via Monte Napoleone from a Blackstone subsidiary for €1.3 billion ($1.4 billion). Additionally, Chanel and Gucci have opened new stores on the strip in the past year, which counts Hermès, Versace, Cartier, Bottega Veneta and Celine among its other residents.
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The changes are part of a broader surge in luxury travel to Milan, which is home to one of the biggest fashion weeks in the world each year as well as a Fashion Week that focuses on interior and furniture design.
According to a report released this year by Henley & Partners, a firm that assists the wealthy in their migration, many high-net-worth individuals have also moved to the city, drawn by the city’s generous tax incentives and streamlined migration regulations.
According to Cushman & Wakefield, the top ten most costly shopping districts in the world by rent per square foot are listed below:
- Via Monte Napoleone, Milan
- Upper Fifth Avenue (49th to 60th streets), New York
- New Bond Street, London
- Tsim Sha Tsui, Hong Kong
- Avenue des Champs Élysées, Paris
- Ginza, Tokyo
- Bahnhoftstrasse, Zurich
- Pitt Street Mall, Sydney
- Myeongdong, Seoul
- Kohlmarkt, Vienna
