Table of Contents
- 1 Why did Milan stand out?
- 2 The role of luxury brands
- 3 What did New York and London do?
- 4 What is happening in Athens?
- 5 Milan has its own value
- 6 Given the increasing concerns about sustainability and ethical consumption, how do you see luxury brands adapting their practices in Milan and other global retail hubs to attract discerning consumers who prioritize these values?
For the first time Via Monte Napoleone in Milan passed New York and London as the most expensive shopping street in the world.
At the same time, Athens remains firmly in 15th place, with the annual rent reaching 3,480 euros.
Why did Milan stand out?
The highest rents landlords can charge luxury retailers on the street have risen by 11% in a year to €20,000 per square meter per year, the highest base rent for shops in any of the 138 global retail destinations tracked by real estate group Cushman & Wakefield.
It is the first European city to top the list in 34 years.
The Italian city benefits from tax relief programs that attract the super-rich, an influx of affluent tourists and intense competition for prime real estate among luxury brands.
The role of luxury brands
Meanwhile, luxury retailers have stepped up competition for the most desirable destinations – paying ever more dollars to buy or rent retail space.
Typical is the case of Kering, the luxury group that owns the brands Gucci and Alexander McQueen, which paid 1.3 billion. euros to acquire a building on Via Monte Napoleone from Blackstone in April, making it Europe’s biggest real estate deal in two years.
Thomas Casolo, Cushman & Wakefield’s head of retail for Italy, said luxury brands have “invested a lot of money to have the best location. The problem is that opportunities are rare.”
Both Chanel and Gucci have opened new locations on Via Monte Napoleone in the last year.
What did New York and London do?
Rents on the street have risen 30% over the past two years, according to Cushman & Wakefield, while New York’s Fifth Avenue — previously the most expensive street — saw rent growth stagnate in 2024. New York recovered quickly from the pandemic in 2022, but has been growing more slowly since then.
Comparatively much smaller than London, Paris or New York, Milan’s prime retail locations are concentrated in a single district around Via Monte Napoleone that includes minimal streets.
“I think the reason rents keep going up is that the street is very small compared to Fifth Avenue, the Champs Elysees or New Bond Street in London,” Casolo told the FT. “Milan has grown very, very fast in terms of investment and international brands wanting to open.”
What is happening in Athens?
The list brings Athens to 15th place with Ermou Street for another year, keeping it unchanged from 2023, with 0% growth in the twelve months and rent estimated at 3,480 euros per square meter per year.
According to Cushman & Wakefield Proprius data for the first quarter of 2024, the prime rent in Ermou reaches 290 euros/sq.m. with a prime yield of 5.25% per annum. Next are Glyfada and Tsimiski Street in Thessaloniki with 150 euros/sq.m. (prime yield 6% for both). The biggest increase in prime yield with 6.5% was recorded by Kifisia, Piraeus, Patras and Heraklion.
However, according to people in the market, the list of the most commercial streets with rising rents in the center of Athens includes Stadiou, the beginning of the University, Omonia and Plaka again.
Milan has its own value
Historically Italy’s austere financial capital, Milan has recently become a popular destination for non-EU duty-free luxury shoppers, global investors and figures in the fashion and arts sectors.
2024 was a record year for tourism in the entire Lombardy region, which includes Lake Como, with more than 13 million visitors. arrivals in the first eight months of the year.
Milan, the capital of the region, is now on course to surpass last year’s record of 8.5 million. visitors.
This popularity among the super-rich has pushed up real estate and hotel prices. This trend has an impact on all the privileged locations of the historic center, where the space for developments is limited.
Source: ot.gr
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Given the increasing concerns about sustainability and ethical consumption, how do you see luxury brands adapting their practices in Milan and other global retail hubs to attract discerning consumers who prioritize these values?
## World Today News Interviews: The Rise of Milan’s Retail Throne
**Welcome to World Today News! We have a fascinating discussion ahead of us, delving into the recent news that Milan’s Via Monte Napoleone has overtaken New York and London as the world’s most expensive shopping street.**
We’re excited to have two esteemed guests joining us today: **[Guest 1 Name and Expertise]** and **[Guest 2 Name and Expertise]**.
**Let’s begin by exploring the factors behind Via Monte Napoleone’s ascent.**
**Section 1: The Milan Phenomenon**
* **[Guest 1]:** The article highlights a remarkable 11% increase in rental rates on Via Monte Napoleone. What specific economic factors do you believe have driven this surge in demand for retail space in Milan?
* **[Guest 2]:** Milan’s transformation from a financial center to a hub for luxury shopping is a fascinating trend. What are the key factors attracting both high-end retailers and international consumers to the city?
* **[Guest 1]:** We see luxury brands like Gucci and Kering making significant investments in Via Monte Napoleone.
Do you think this trend will continue, and what may be its long-term impact on Milan’s retail landscape?
* **[Guest 2]:** Milan’s success is partially attributed to its favorable tax policies. How significant a role do you think fiscal incentives play in attracting luxury businesses and wealthy individuals to the city?
* **[Guest 1]:** The article mentions that Milan’s prime retail district is relatively compact compared to other global shopping destinations. How does this limited availability of luxury space influence rental prices and brand competition?
**Section 2: The Global Landscape**
* **[Guest 2]:** While Milan is ascending, New York’s Fifth Avenue has experienced stagnant rent growth in recent times. What factors might be contributing to this difference in trajectory between the two cities?
* **[Guest 1]:** London and Paris are also faces stiff competition in the luxury retail sector. How do they compare to Milan, and what are their strengths and vulnerabilities in attracting luxury brands?
* **[Guest 2]:** The article briefly touches upon the impact of tourism on Milan’s real estate market. How do you think the dynamics of international tourism and local economies intersect in shaping the future of luxury retail destinations?
**Section 3: Athens & Emerging Markets**
* **[Guest 1]:** The article mentions that Athens’ Ermou Street holds steady at 15th place on the list of most expensive streets. What are some of the key challenges and opportunities facing Athens in developing its luxury retail sector?
* **[Guest 2]:** Looking beyond established markets like Milan, New York, and London, what emerging cities or regions do you see as potential contenders in the race for luxury retail dominance? What characteristics do these locations possess that make them attractive to high-end brands and consumers?
* **[Guest 1]:** The luxury retail landscape is constantly evolving. What long-term trends do you foresee shaping the future of this industry, and how might these trends impact global cities like Milan, Athens, and others?
**Closing:**
Thank you, [Guest 1 Name] and [Guest 2 Name] for sharing your valuable insights. This discussion has truly shed light on the complex interplay of economic, social, and global factors shaping the future of luxury retail. We hope this conversation will encourage further exploration and discussion on this fascinating topic.
