For the first time, a European shopping street has topped the global ranking of the most expensive retail locations: Milan's Via Montenapoleone overtakes New York's Upper 5th Avenue and secures first place with an annual prime rent of 20,000 euros per square metre. This is according to the 34th edition of the ‘Main Streets Across the World’ report by Cushman & Wakefield, one of the world's leading property consultancies.
London's New Bond Street also displaced Hong Kong's Tsim Sha Tsui in 4th place. As in 2023, Paris' Avenue des Champs-Élysées completes the top 5 of the world's most expensive main streets. With Zurich's Bahnhofstrasse (7th place) and Vienna's Kohlmarkt (10th place), two more European cities make it into the top 10. In the underlying country ranking, Germany comes in slightly higher at 13th place (2023: 14) with Munich's Kaufinger/Neuhauser Strasse shopping street.
‘Despite challenging market conditions and the dynamic development of e-commerce, the demand for physical retail space in the best locations remains unbroken,’ says Andreas Siebert, Head of Retail Investment Germany at Cushman & Wakefield. ‘These internationally renowned streets offer brands the opportunity to strengthen their presence and optimise the customer experience. Luxury and mass market brands are increasingly turning to physical shops as an extension of their brand and a showcase for exclusive products.’
Global Results and Changes
In this year's global ranking, Via Montenapoleone in Milan is in first place with an annual rent of 20,000 euros per square metre and recorded growth of 11 percent compared to the previous year. New York's Upper 5th Avenue, which previously topped the ranking, fell to second place with a stable annual rent of EUR 19,537 per square metre. London's New Bond Street rose to third place with a 13 per cent increase in rents to EUR 17,210 per square metre annually, while Tsim Sha Tsui in Hong Kong slipped to fourth place (EUR 15,697 per square metre). Avenue des Champs-Élysées in Paris maintained its position with a rent increase of 10 per cent to EUR 12,519/m2 per year and remains in 5th place as in 2023.
Overall, rents rose in 79 of the 138 retail streets analysed. Locations in the USA are particularly striking, recording strong growth. European locations also showed significant growth, particularly in Italy, France and the UK, where demand for luxury space is continuing.
German cities in the European midfield
Only English and French retail locations make it into the top 10 most expensive European shopping streets after Milan's winner Via Montenapoleone. German retail streets rank in the midfield. As in the previous year, Munich's Kaufinger/Neuhauser Strasse is in 24th place with an annual rent of 3,840 euros/m2, while Maximilianstrasse, also in Munich, remains in 26th place with an annual rent of 3,360 euros/m2. In Berlin (30), Frankfurt (31), Hamburg (32) and Düsseldorf (33), rents remain at EUR 3,000/m2 per year as in 2023, although these locations have each dropped one place. These moderate declines are due to the stronger rental growth in other European cities.
‘The stable rent level in the top locations in Germany shows the continued attractiveness of German retail locations,’ explains Tina Reuter, Head of Germany at Cushman & Wakefield. ‘Although the German market has not seen any significant rent increases, demand for prime retail space remains stable.’
The results of this year's report show that demand for premium retail space continues unabated worldwide. This is particularly true for the luxury segments, which combine physical presence with brand value. German cities continue to position themselves as solid retail destinations in a European comparison, while international competition for space in prime locations is driving rental growth.
Survey Results and Methodology
The ‘Main Streets Across the World’ report annually compares prime rents in the best shopping streets worldwide. The analysis is based on 138 leading retail locations, many of which are associated with the luxury segment, and takes into account Cushman & Wakefield's proprietary market data. In 2024, 57 percent or 79 of the locations analysed recorded rental growth, while 14 percent (19) recorded declines. The region with the strongest rental growth was North America with an increase of 8.5 per cent, followed by Europe and Asia-Pacific with 3.5 per cent and 3.1 per cent respectively. In many regions, rents had already exceeded pre-pandemic levels and are now 6.0 per cent higher on average worldwide.
