New York's Upper Fifth Avenue has surpassed Hong Kong's Causeway Bay as the world's most costly shopping area, according to Cushman & Wakefield's flagship retail research report, Main Streets Across the World.
In the 12 months to September 2014, prime retail rents climbed by an average of 2.4 percent around the world, with the recovery continuing but at a slower pace. Some markets were impacted by volatile and somewhat reduced economic activity, while others were impacted by structural changes. Despite the slower pace of rental growth, 277 of the 330 locations surveyed were either unchanged or grew year over year. Property
The following are some of the report's highlights:
The world's most expensive retail area is New York's Upper Fifth Avenue, where rentals hit a record $3,500 per sq ft per year, with Hong Kong's Causeway Bay slipping to second place after a 6.8% drop in rates.
With a 30 percent increase over the previous year, San Francisco leads the way in global rental growth.
Although the city of Paris grew by 6% overall, rental values in the Champs-Élysées remained unchanged after a 40% increase the previous year - the street now ranks third.
New Bond Street in London is still in fourth place, with rentals up 4.2 percent.
The top five are rounded off by Pitt Street Mall in Sydney, which has jumped three places thanks to a 25% increase.
In the 12 months leading up to September 2014, global prime retail rents increased by 2.4 percent.
The Americas experienced the fastest growth, with prime rents up 5.8%, the same as last year, while EMEA saw a moderate 1.3 percent increase and Asia Pacific saw a 3.6 percent increase.
This year's rankings of the most expensive retail locations in each country saw significant changes. Upper Fifth Avenue in New York achieved a new high of $3,500 per sq ft per year, leapfrogging Causeway Bay, which saw rentals decline by 6.8%, to take the top spot.
According to John Strachan, global head of retail at Cushman & Wakefield, "New York is once again the most expensive shopping destination in the world, and Upper Fifth Avenue has set a new record for the highest retail rentals ever recorded for the first time since 2011. As major businesses compete for prime addresses in the world's main cities, global gateway markets continue to grow."