Bond Street dethrones Milan with Europe’s most expensive retail rent
London’s Bond Street has been crowned Europe’s most expensive street to rent, stealing the top spot from Milan.
In 2024, Bond Street reported a 20 per cent uplift in prime headline rents, taking its benchmark prime rent to €15,333 (£13,162) per sqm.
It has overtaken Milan’s Via Monte Napoleone (£12,872 per sq m), which held the top spot in 2023, although there is “little between them”, Savills said.
Bond Street, which boasts luxury stalwarts like Chanel, Louis Vuitton and Ralph Lauren, is now the third most expensive street in the world after Hong Kong’s Tsim Sha Tsu and New York’s fifth avenue.
Tsim Sha Tsui retained its top position with rents of £14,702 per sqm, despite “downward pressure on prime headline rents”, Savills added.
Luxury brands have been increasingly pivoting away from China – and Hong Kong – and towards Western and emerging economics after a downturn in Eastern demand.
New York’s Madison Avenue and Fifth Avenue averaged a 24 per cent uplift in rents year on year, though rents on Fifth Avenue are still to fully recover to 2019 levels.
Anthony Selwyn, co-head of global retail at Savills, said luxury brands are taking a “longer-term strategic view of the market” and a focus on “core luxury markets” has and will continue to put upward pressure on rents.
The subsequent short supply of best-in-class space will push up rents in prime areas even further, Selwyn added.
“The stabilisation in the luxury market’s performance that started to materialise at the end of 2024 will become more entrenched as this year progresses,” Marie Hickey, Director in Commercial Research at Savills, added.
“Weakened consumer sentiment in the US and China, however, will weigh on growth, and will shape real estate investment, with the focus over the short term to remain on the best opportunities.”