The street regains its pulse again. And it recovers it, even, compared to before Covid-19. The pandemic that devastated physical commerce in 2020 is behind us and physical stores have regained the prominence that, in the midst of confinement, it seemed they would lose. Opening a store on one of the most popular streets in the world is, today, 6% more expensive than before the pandemic.
According to the latest edition of the report Main Streets Across the World from the real estate consultancy Cushman&Wakefield, which this year has elevated the Milanese Via Montenapoleone as the most expensive street in the worldrents on the world’s 138 main streets have surpassed pre-2020 rent levels, thanks to increases of around 4% each year.
Globally, rents increased an average of 4.4% last year, a slight slowdown from 4.8% the previous year, according to data in the report. America led the way, with an 8.5% increase, driven by an 11% rise in rental prices in the last year in the United States.
Rents increased by an average of 4.4% last year, a slight slowdown from 4.8% the previous year
Faced with the acceleration of the upward trend experienced by the main streets of the United States, in Europe and Asia Pacific the rise in rents has slowed downwith an increase of 3.5% and 3.1%, respectively, compared to 4.2% and 5.3% last year.
The consulting firm warns, however, that when analyzing European data it must be taken into account that in 2023 the increase in income was due to inflation in Türkiye. Excluding these markets from the analysis, rental growth in Europe approached 2.1% year-on-year in 2023, so 2024 results point to an acceleration. In fact, for the first time in the history of the document, a European street leads the ranking.
More than half of the main streets have raised their rents in the last year. Specifically, 57% of the roads (a total of 79) are more expensive today than a year ago, while another 14% (19 streets) have registered declines in their rental prices. The rest, 29% (40 routes), remain stable.
Hungary is the country where rental prices have increased the most, on average, between the third quarter of 2023 and the third quarter of 2024, followed by Poland, Japan, Austria, the United States, Brazil and Romania. Spain is also one of the 79 countries where rents are more expensive than twelve months ago.
Hungary is the country in the world where rental prices rose the most, while in Vietnam or Argentina they fell
In Turkey, Mexico, Cyprus, Greece, Denmark or Lithuania or Australia, rental prices have remained stable, while in Vietnam, China, Croatia and Argentina they have experienced decreases.
America continues to be the region of the world where incomes evolve most stronglydriven by an 11% increase in rental prices in the last year in the United States. Faced with the acceleration of rents on the main streets of the United States, in Europe and Asia Pacific the rise in rents has slowed, with an increase of 3.5% and 3.1%, respectively, compared to 4, 2% and 5.3% last year.
In the United States, the runaway increase in rents in Miami stands out, and in Europe, that of Budapest
The stars of each market
Despite the global trends that mark the general evolution of each territory, Cushman&Wakefield highlights that there are great differences between cities in the same country.
In the United States, for example, the evolution of the Miami Design District stands out, where rents have increased by 66% in the last year and 150% in the last four. This increase, a reflection of the demand from international retailers to find space in Miami, is repeated in seven more streets in the United States, whose prices increased by double digits.
In Europe, the star of the last year has been Váci Utca, in Budapest, where rents have increased by 27% in the last yearalthough the low comparable base for 2023 must be taken into account. The evolution of Regent Street and New Bond Street, in London, is also notable, with rent increases of 16% and 13%, respectively.
“In many places in Western and Southern Europe, rents have registered a positive trend, reflecting the strong tourist influx, not only associated with this year’s Olympic Games but also due to the strong demand from American tourists,” says the consultancy. Only two of the 57 locations analyzed in Europe recorded a decrease in rents in the year: Kalku Street in Riga (-3%) and Ilica Street in Zagreb (-7%).
The evolution of rents in Asia Pacific is a reflection of the macroeconomic situation of each market. In India, for example, the robust macro picture translates into rents, with Bengaluru’s Indiranagar 100 Feet Road up 32% in one year. On average, India’s sixteen main streets are 9% more expensive today than a year ago.
While the streets of Japan have defied the weak economic environment and, after four years of stability, have returned to growth in 2024, the situation of domestic consumption is reflected in those of China.
* **What are the potential long-term implications of the resurgence of physical retail on urban planning and development, particularly in terms of real estate trends and city centers?**
## World Today News: The Return of Retail?
**🎤 Interview with:**
* **Guest 1:** Dr. Elena Garcia, Professor of Urban Planning and Real Estate at the University of Seville
* **Guest 2:** Richard Wright, Retail Analyst and Consultant at Global Retail Insights
**Interviewer:** Welcome to World Today News. Today, we’re diving deep into the fascinating world of retail with our experts, Dr. Elena Garcia and Richard Wright. A recent report by Cushman&Wakefield highlights a surprising trend: the resurgence of physical retail in a post-pandemic world.
**Section 1: The Resurgence of Physical Retail**
**Interviewer:** Dr. Garcia, the report states that global rents on main streets have surpassed pre-pandemic levels. This seems to defy the predictions of many who thought online shopping would permanently kill physical stores. What’s fueling this resurgence?
**Dr. Garcia:** (Answer)
**Interviewer:** Richard, do you agree with these findings? Does your experience in the retail industry support this trend?
**Richard:** (Answer)
**Interviewer:** Do you think this trend will continue, or is it a temporary blip?
**Section 2: Regional Trends and Market Dynamics**
**Interviewer:** The report highlights wide variations in rental growth across different regions. America leads the charge, while Europe and Asia Pacific are experiencing slower growth. Richard, what factors might be contributing to these regional differences?
**Richard:** (Answer)
**Interviewer:** Dr. Garcia, the report mentions specific examples like Miami Design District and Váci Utca in Budapest experiencing significant rent increases. What makes these areas so attractive to retailers?
**Dr. Garcia:** (Answer)
**Interviewer:** How effectively do these regional variations reflect the overarching macroeconomic landscape?
**Section 3: The Future of Retail – Hybrid Models and Challenges**
**Interviewer:** Looking ahead, how do you see the relationship between physical and online retail evolving? Are we moving towards a hybrid model, or will one eventually dominate?
**Richard:** (Answer)
**Interviewer:** Dr. Garcia, what are some of the key challenges facing physical retail in the coming years?
**Dr. Garcia:** (Answer)
**Interviewer:** Do you think that sustainability will increasingly influence consumer choices, and how might that impact the future landscape of retail?
**Section 4: Closing Thoughts and Predictions**
**Interviewer:** We’ve covered a lot of ground today. In your expert opinions, what’s the one key takeaway for both consumers and retailers as we navigate this evolving retail landscape?
**Dr. Garcia:** (Answer)
**Richard:** (Answer)
**Interviewer:** Thank you both for your insightful perspectives. It seems that while the retail world is
constantly evolving, one thing remains clear: the human desire for connection and experience will continue to shape the future of shopping.
**Outro:** This has been World Today News, keeping you informed about the trends shaping our world.
