According to a recent analysis by property consultancy Cushman & Wakefield, Milan’s Via Monte Napoleone has overtaken London’s New Bond Street as Europe’s most expensive shopping street. The cost of renting store space on New Bond Street has decreased by 7% this year, but remains high at $1,361 (£1,150) per square foot per year. This decrease in rent can be attributed to UK landlords reducing prices in order to attract tenants, as well as the end of tax-free shopping for tourists in London.
Despite these factors, New Bond Street has performed better than many other shopping areas, with rental prices only dropping by 11% since the start of the pandemic. In comparison, non-luxury retail locations across the country have experienced more significant declines. On the other hand, Via Monte Napoleone in Milan has seen a 7% increase in retail rents this year, reaching $1,380 per square foot. New Bond Street still holds the second position in Europe, outperforming the Champs Élysées in Paris, where rents have fallen by 4% to $1,050 per square foot.
Globally, the upper section of Fifth Avenue in New York remains the most expensive shopping street in terms of rents, experiencing a notable increase of 7% in 2022, reaching a staggering $2,000 per square foot. Hong Kong’s Tsim Sha Tsui holds the second position globally, with rents at $1,436 per square foot.
Despite rental prices declining in some parts of Europe, Cushman & Wakefield emphasizes the resilience of high-quality retail real estate, which has faced significant challenges in recent years. The luxury retail sector continues to thrive, attracting shoppers with its exclusive offerings and unique experiences. Although New Bond Street may have lost its top spot in Europe, it remains a prominent shopping destination, catering to affluent customers in search of luxury brands and exceptional experiences in London’s buzzing West End.
Useful links:
1. Cushman & Wakefield website
2. Top Ten Shopping Streets in London
