What is the most expensive shopping street in the world?

By Hanna ZiadyCNN

Milan’s Via Monte Napoleone has beaten New York’s Fifth Avenue to become the world’s most expensive shopping street, marking the first time a European city has topped the rankings.

Rents on the street, located in the heart of Italy’s financial capital, have jumped 11 per cent over the past 12 months to $2,047 per square foot (NZ$35,800 per square meter), as demand has exceeded supply, according to a report released Wednesday by a real estate group. Cushman and Wakefield.

By comparison, rents on Upper Fifth Avenue, which spans 49th to 60th streets, remained stable for the second year in a row, at US$2,000 per square foot.

Beyond the top two spots, New Bond Street in London overtook Tsim Sha Tsui in Hong Kong to take third place, with rents rising to $1,762 per square foot. The iconic Avenue des Champs Élysées in Paris comes in fifth place at $1,282.

Via Monte Napoleone “is very short compared to Fifth Avenue, New Bond Street or the Champs Élysées,” which helps drive up rents, said Thomas Casolo, Cushman & Wakefield’s head of retail for the Italy. He believes this will allow further rent increases. “Space is very scarce,” he told CNN.

The report, now in its 34th year, tracks rents in 138 top commercial destinations globally. These locations face high demand for space and limited supply, even in an otherwise tough retail market, according to Robert Travers, head of retail for Europe, the Middle East and Africa at Cushman & Wakefield.

Luxury and mass-market brands are “doubling down on their physical store presence in prime locations as competition for consumer attention drives the need for a quality shopping experience and product showcase superior,” he said. As a result, vacancy rates are “exceptionally tight,” resulting in expensive rentals.

In April, Gucci’s parent company Kering paid €1.3 billion (NZ$2.3 billion) to acquire a building on Via Monte Napoleone from a Blackstone subsidiary. Chanel and Gucci have also opened new locations on the Strip over the past year, which counts Hermès, Versace, Cartier, Bottega Veneta and Céline among its other residents.

The developments reflect a broader boom in luxury tourism in Milan, which hosts one of the world’s biggest annual fashion weeks, as well as a design week focused on furniture and interior design.

Many wealthy people have also moved to the city, attracted by simplified migration rules and generous tax incentives, according to a report released this year by Henley & Partners, which helps the wealthy migrate.

The 10 most expensive shopping centers in the world, in terms of rent per square foot, according to Cushman & Wakefield:

1. Via Monte Napoleon, Milan

2. Upper Fifth Avenue (49th to 60th Streets), New York

3. New Bond Street, London

4. Tsim Sha Tsui, Hong Kong

5. Avenue des Champs Élysées, Paris

6. Ginza, Tokyo

7. Bahnhoffstrasse, Zurich

8. Pitt Street Shopping Centre, Sydney

9. Myeongdong, Seoul

10. Kohlmarkt, Vienna

– CNN