London’s New Bond Street named the world’s most expensive retail destination

New Bond Street in London, home to brands including Burberry, Chanel, Chloé, Dior, Gucci, Hermès, Louis Vuitton, and Ralph Lauren, has been crowned the world’s most expensive retail destination for the first time, leapfrogging Milan’s Via Montenapoleone, last year’s winner, and New York’s Upper Fifth Avenue.

In the global retail report ‘Main Streets Across The World’ by commercial real estate company Cushman & Wakefield, which focuses on headline rents in 141 best-in-class urban locations across the world, London’s New Bond Street saw its rents increase by 22 percent in the past year to 2,231 US dollars per square foot per year.

Milan’s Via Montenapoleone, which became the first European street to top the global rankings last year, came second with 2,179 US dollars per square foot per year, while Upper Fifth Avenue in New York was 2,000 US dollars per square foot per year. Rounding off the top five streets were Tsim Sha Tsui (main street shops) in Hong Kong in fourth place, and Avenue des Champs Élysées in Paris in fifth.

Other streets in the top ten included: Ginza, Tokyo; Bahnhofstrasse, Zurich; Pitt Street Mall, Sydney; Myeongdong, Seoul; and Kohlmarkt, Vienna.

Duncan Gillard, head of central London retail at Cushman & Wakefield, said in a statement: “New Bond Street’s rental growth has been fuelled by strong demand, limited supply, and continued investment in the public realm, all of which have reinforced its status as a global retail destination.

“The prime jewellery section between Clifford Street and Burlington Gardens in particular has become one of the most fiercely contested locations in global retail. This has seen many occupiers opting for long-term leases on strong rental terms to protect their position in this highly coveted location.”

Globally, the report reveals that rents grew on average at 4.2 percent, with 58 percent of markets experiencing rental growth. The Americas led regional rental growth at 7.9 percent, driven by currency effects in South America, while Europe experienced steady 4 percent year-on-year growth, with “standout performances” in Budapest and London. Meanwhile, rents in Asia Pacific slowed to 2.1 percent, with strong growth in India and Japan offset by economic headwinds in Greater China and Southeast Asia.

London leads luxury retail resurgence

In Europe, London led the resurgence in rents, with New Bond Street (up 22 percent), Oxford Street (11 percent), and Regent Street (10 percent) all recording double-digit increases. This confirms London’s dominance in European luxury retail and the competitive nature of finding the right location. Just last week, Cartier bought 18-19 Albemarle Street for 67.5 million pounds.

Budapest’s Fashion Street was also a standout performer in the region, with a 33 percent rise, overtaking Váci utca as the city’s premier retail destination. Milan and Paris maintained their global status with stable rents on Via Montenapoleone and Champs Elysées (1,364 US dollars per square foot per year).

Brazil sees retail rental boost, and India led the Asia Pacific region The Americas remained the strongest performing region overall, according to Cushman & Wakefield, with average rent growth of 7.9 percent. São Paulo’s Oscar Freire Jardins in Brazil reported a 65 percent increase, climbing seven places in the global rankings.

In North America, rental growth “was more subdued,” with the US averaging 2.5 percent. While New York’s Upper Fifth Avenue remained flat, neighbouring Madison Avenue and SoHo recorded growth of over 8 percent, offering attractive value at 30-50 percent lower rents. Canada also saw a rebound, with Vancouver’s Robson Street reversing a 25 percent decline in 2024 to post a 20 percent increase in 2025.

For the Asia Pacific region, the report reveals that rental growth slowed from 2.8 percent in 2024 to 2.1 percent in 2025, though it added that performance varied widely across markets. India’s Tier 1 cities led the region, with Gurgaon’s Galleria Market recording a 25 percent increase, followed by Connaught Place in New Delhi (14 percent) and Kemps Corner in Mumbai (10 percent).

Japan’s Ginza and Omotesando in Tokyo saw strong growth of 10 percent and 13 percent, respectively, while rents in Hong Kong’s Tsim Sha Tsui declined by 6 percent to 1,515 US dollars per square foot per year. Sydney’s Pitt Street Mall recorded modest growth of 4 percent, reaching 795 US dollars per square foot per year, marking a return “to positive momentum after years of stagnation”.

When it comes to the outlook, Cushman & Wakefield states that prime retail destinations continue to outperform broader market trends, demonstrating resilience amid economic uncertainty and shifting consumer behaviour. “While interest rates remain elevated, inflation pressures are easing, and central banks retain capacity for further rate cuts. This, combined with stabilising consumer sentiment, real wage growth and a rebound in international tourism, is expected to support retail performance in the coming year,” added the report.

Dr Dominic Brown, head of international research at Cushman & Wakefield, and author of the report, added: “Prime retail corridors are benefiting from a convergence of factors including resilient economic growth, easing cost of living pressures, and a renewed appetite for discretionary spending.

“While growth trajectories will vary by market, the strength of flagship locations is clear. We’ve seen exceptional double-digit rental growth in select cities, even as others face pressure. The continuing importance of physical retail, particularly for deep and meaningful brand engagement in places where consumers want to be, reinforces the enduring appeal of the world’s premier shopping streets and we expect this momentum to strengthen as global conditions improve.”