Global downturn hits half of world's top shopping streets: C&W

More than half of the world's most prestigious shopping streets have been affected by the global economic downturn, with 54% of the 274 streets monitored by real estate adviser Cushman & Wakefield seeing their prime rents fall. Six of the 10 top shopping streets are located in Europe.

The findings in Cushman & Wakefield's annual Main Streets Across the World report represent the biggest global fall in retail rents in its 24-year history. In only 18% of locations did prime rents rise.

Main Streets Across the World provides a global barometer of the strength of the retail sector and the popularity of shopping streets in 60 countries. Most of the 10 most expensive streets in the world have seen their prime rents fall or remain static as retailers have reined in expansion. New York's Fifth Avenue remains the world's most expensive street where retailers can expect to pay $1,700 a square foot per annum, a decline of 8.1% on 2008. Fifth Avenue has been the world's most expensive street for the last eight years. Hong Kong's Causeway Bay and Paris's Avenue des Champs-Élysées maintain their positions at second and third respectively.

Germany's Kaufingerstrasse in Munich was the biggest riser into the top 10 moving to ninth from 12th position with a 7.1% increase in rents. Ireland's Grafton Street in Dublin was the biggest faller in the top 10 moving from fifth to eighth place with prime rents falling 22.5%. Last year it entered the top five for the first time.

The world's ten most expensive shopping streets 2009

Rank 2009 Rank 2008 Country City Street US$/sq ft/year EUR/sq m/year % change
1 1 US New York 5th Avenue 1,700 13,027 (8.1)
2 2 China Hong Kong Causeway Bay 1,525 11,687 (15.1)
3 3 France Paris Ave des Champs Elysees 1,009 7,732 0
4 4 Italy Milan Via Montenapoleone 887 6,800 1.5
5 7 Japan Tokyo Ginza 776 5,950 0
6 6 UK London New Bond Street 768 5,885 6.9
7 8 Switzerland Zurich Bahnhofstrasse 685 5,246 0
8 5 Ireland Dublin Grafton Street 568 4,356 (22.5)
9 12 Germany Munich Kaufingerstrasse 470 3,600 7.1
10 9 Australia Sydney Pitt Street Mall 448 3,436 (3.2)

Source: Cushman & Wakefield