Global increase in prime rents on luxury shopping streets

With prime rents of 2,082 uro per square metre per month, Hong Kong's Causeway Bay is the most expensive shopping street in the world. Fuelled by high demand and limited available premises, rents at this location increased by 14.7% last year, making Causeway Bay the most expensive shopping street in the world for the second year in a row.

According to the latest study "Main Streets Across the World", published today by the international property consultancy firm Cushman & Wakefield, Fifth Avenue and Avenue des Champs-Élysées occupy second and third place in the ranking of the most expensive international shopping areas. While prime rents in New York's top location remained at last year's level (1,725 Euro/m²/month), Paris' magnificent boulevard recorded an increase in prime rents of almost 40%. The current rent on Avenue des Champs-Élysées is 1,105 Euro/m²/month.

The Main Streets Across the World study was conducted for the 25th time this year. A total of 334 top retail locations in 64 countries were studied over a year from July 2012 to July 2013. Since its first publication 25 years ago, the report has provided a ranking of the most expensive shopping streets in the world.

Although prime rents increased by 3.2% on average worldwide, this increase was slightly under that of the previous year (4.5%). Worldwide shopping areas are robust: stable or even increasing prime rents were recorded for 285 locations.

Due to the high demand for premises from international luxury brands, London's New Bond Street recorded a prime rent price of 722 Euro/m²/month in autumn 2013. This saw New Bond Street climb from sixth to fourth place in the global ranking, pushing Ginza in Tokyo down one place (679 Euro/m²/month). Milan's Via Montenapoleone also rose from eighth to sixth place: here the prime rents increased by 7.4% to 625 Euro/m²/month. John Strachan, Global Head of Retail at Cushman & Wakefield, explained: “Fifth Avenue and Causeway Bay have once again defended their position as the most expensive retail locations. Nevertheless we have recorded strong demand from luxury labels and positive growth in almost all top locations.

Source: Main Streets Across the World 2013/2014  |  Cushman & Wakefield


The prime rents in the top locations in the EMEA region (Europe, Middle East and Africa) increased by 2.1% on average over the course of the year. The driving forces behind this positive development were the improving economic climate, increased stability on the financial markets, the high demand for premises from luxury brands, as well as the resurgent consumer climate. Of 33 countries only seven reported a decrease in prime rents, meanwhile 26 countries noted stable or even increasing rents in top locations. London is an example of the brisk development on many European shopping streets: prime rents on New Bond Street increased by 15.4% and on Sloane Street ten international brands compete with each other for every retail unit that becomes available.

Despite sluggish economic growth and the expansion of premises observed in some locations, an average increase of 5.8% in prime rents was registered for the American continent.

The Asia-Pacific economic region remained in the focus of international retailers, which is reflected in the average increase in prime rents of 4.5%. The overall picture of the Asian markets is inconsistent - retailers aren't able to look back on a positive year in all locations. Dominant developments in Asia include sluggish economic growth, as well as the increasing influence of retail concepts away from the luxury category.

Top German locations include Munich's Kaufingerstraße at 360 Euro/m²/month, which is by far the most expensive address (eleventh place in global ranking), followed by Hamburg's Spitalerstraße and Frankfurt's Zeil each with prime rents of 295 Euro/m²/month. The next few ranks are held by Schildergasse in Cologne and Berlin's Tauentzienstraße each at E85 euro/m²/month. The highest rents in Düsseldorf were recorded on Königsallee at 265 Euro/m²/month. Prime rents on Stuttgart's Königstraße also matched this level. In autumn 2013 the prime rents here were 265 euro/m²/month. "Germany continues to be a very interesting location for international retailers, especially in the luxury segment. Low unemployment rates, high levels of income and the very stable overall economic situation reinforce trust in Germany as an extremely interesting retail location. As well as local consumers, many international and extremely wealthy visitors are playing an increasingly significant role", explains Marc Alfken, Head of Retail at Cushman & Wakefield in Germany.

Source: Main Streets Across the World 2013/2014 |  Cushman & Wakefield

Vienna's Kohlmarkt in 10th place, Zurich's Bahnhofstraße in 7th place

In Austria, Vienna's Kohlmarkt ranks number 1 in the most expensive locations at 370 euro/m²/month (10th place in overall ranking), while Landstraße in Linz and Getreidegasse in Salzburg lead at130 and 125 euro/m²/month respectively. Furthermore, Graz's Herrengasse and Innsbruck's Maria Theresienstraße lead the prime rents in their respective cities at 110 euro/m²/month.

Source: Main Streets Across the World 2013/14  |  Cushman & Wakefield

Zurich's Bahnhofstrasse is still the most expensive shopping street in Switzerland, where prime rents are 603 Euro/m²/month (7th place in the international ranking), followed by Geneva's Rue de Rhone at 271, Basel's Freie Strasse at 196 and Berne's Marktgasse/Spitalgasse at 203 Euro/m²/month as the most expensive shopping streets in each city.

Source: Main Streets Across the World 2013  |  Cushman & Wakefield