For the first time, a European street tops the global ranking of the most expensive shopping avenues, according to the Main Streets Across the World report by Cushman & Wakefield. Via Monte Napoleone, located in Milan, has dethroned New York's iconic Fifth Avenue, recording commercial rents of up to €20,000 per square meter per year.

Milan’s Rise in the Luxury Market

The popularity of Via Monte Napoleone reflects Italy’s emergence as a prime tourist destination and its growing appeal to high-net-worth shoppers. The demand for space on this street, driven by the limited number of available retail units and the boom in luxury tourism, has led to a 30% increase in rents over the past two years. In comparison, Fifth Avenue holds steady at €19,537 per square meter.

This milestone is also attributed to fiscal policies such as the flat tax on foreign income, which has attracted billionaires from around the globe to Italy. Additionally, the euro’s appreciation against the dollar has played a key role in this ranking.

Rome Also Shines

Italy’s success isn’t limited to Milan; Rome ranks fifth globally thanks to Via Condotti, where rents reach €15,000 per square meter, surpassing even Paris’s Champs-Élysées. However, the annual growth on Via Condotti has been more modest at 3%, compared to Via Monte Napoleone’s 11%.

Impact on the Real Estate Market

The exclusivity of Via Monte Napoleone is reflected not only in rental prices but also in record-breaking property sales. A notable example is the acquisition of a building by the French luxury group Kering for €1.3 billion, housing boutiques of iconic brands such as Prada and Yves Saint Laurent. This transaction marks the largest single-property investment in Italy’s history, significantly increasing the value of nearby properties.

A Global Competition in Luxury

Globally, London ranks third with New Bond Street, while Hong Kong and Tokyo join Rome in rounding out the top five. This luxury boom is not limited to Europe, as the report highlights an average global increase of 4.4% in commercial rents, with the Americas leading the way at 8.5%.

Via Monte Napoleone has not only solidified its status as the epicenter of European luxury but has also set a precedent in the fiercely competitive global high-end retail market, challenging even the world’s most iconic streets.