New York City's Fifth Avenue has been dethroned as the world's most expensive shopping street — here's the new Top 10

By: Geoff Weiss

20 November 2024 at 13:21

A red Ferrari parked outside of Dior and Burberry on Via Monte Napoleone. — Earlier this year, Gucci owner Kering spent $1.4 billion to acquire one of the largest buildings in Milan's Via Monte Napoleone.
GABRIEL BOUYS/AFP via Getty Images

Milan has dethroned New York City as home to the world's most expensive street in retail.
Via Monte Napoleone boasts annual rents of $1,959 per square foot, per a new report.
Luxury giant Kering recently purchased a $1.4 billion building in the elite district.

New York City's Fifth Avenue has been dethroned as the most expensive shopping street in the world, according to a new report from a global real estate firm.

Milan's Via Monte Napoleone has taken the crown — marking the first time a European city has topped a list compiled by property consultancy Cushman & Wakefield.

The report assessed annual rents globally for 138 luxury shopping districts — from Tokyo to Paris to Zurich.

"Despite challenging market conditions and the dynamic development of e-commerce, the demand for physical retail space in the best locations remains unbroken," Cushman's head of retail investment, Andreas Siebert, said in a statement.

Earlier this year, for instance, Gucci and Saint Laurent owner Kering spent $1.4 billion to acquire one of the largest buildings in Via Monte Napoleone from Blackstone.

Luxury giants are placing billion-dollar bets on physical storefronts, Business Insider previously reported, even as online shopping surges.

That said, it's been a challenging season for the luxury sector — though some players, like Hermès, are bucking larger trends.

Here are the 10 most expensive shopping streets worldwide, according to Cushman & Wakefield.

1. Milan: Via Monte Napoleone

A shot looking up from the street at via Montenapoleone, with buildings ornamented with Christmas decor in 2018. — Via Monte Napoleone, the world's most expensive shopping street, at Christmastime.
Mairo Cinquetti/NurPhoto via Getty Images

Milan's Via Monte Napoleone boasts annual rents of $1,959 per square foot, according to the report, up 11% over last year.

One factor contributing to its ascendance? The street is "very short" compared to others on the list, which has driven up rents, Cushman's head of retail for Italy, Thomas Casolo, told CNN.

Chanel and Gucci both opened new locations in the area within the past year, according to the Financial Times.

2. New York City: Upper Fifth Avenue

A group of tourists crossing the street on 5th Avenue in 2017, with luxury stores ornamented with American flags. — New York's Fifth Avenue has been supplanted, though an overhaul of the area is in the works.
Andrew Lichtenstein/Corbis via Getty Images

While North America posted the strongest rental growth of any continent, according to Cushman, Upper Fifth Avenue came in second this year, with annual rents priced at $1,913 per square foot.

Last month, The New York Times reported city officials are plotting a $350 million overhaul of Fifth Avenue that will make it more walkable — not unlike its European counterparts.

3. London: New Bond Street

Three people strolling in front of the Hermes store on Bond Street in London on a sunny day. — Hermes, pictured here on New Bond Street in London, is bucking the trend of a luxury downturn.
Mike Kemp/In Pictures via Getty Images

London's New Bond Street rose one spot to No. 3 on this year's list — marking a 13% increase over last year, according to Cushman & Wakefield.

The elite shopping district now boasts annual rents of $1,685 per square foot, according to the report.

4. Hong Kong: Tsim Sha Tsui

Pedestrians in front of the Louis Vuitton store at Tsim Sha Tsui. — Pedestrians stroll in front of the Louis Vuitton store at Tsim Sha Tsui. Parent company LVMH said sales dropped during the third quarter.
Li Zhihua/China News Service/VCG via Getty Images

Hong Kong's Tsim Sha Tsui slipped one spot, according to the report, with annual rents of $1,537 per square foot.

5. Paris: The Avenue des Champs-Élysées

The Bvlgari boutique on the Champs-Elysees, as tourists stroll the streets at sunset. — The Bvlgari boutique on the Champs-Élysées at sunset.
: Apaydin A/Andia/Universal Images Group via Getty Images

The Avenue des Champs-Élysées remained the fifth most expensive shopping boulevard globally — even as annual rents in the Parisian hot spot rose 10% to $1,226 per square foot.

6. Tokyo: Ginza