#London #United Kingdom #Retail Growth #Cushman & Wakefield #New Bond Street

New Bond Street Tops Global Retail Rankings

According to the recent report by Cushman & Wakefield, New Bond Street in London has emerged as the most expensive retail destination in the world for the first time. This prestigious area saw a remarkable 22% increase in rental prices over the past year, reaching an annual price of $2,231 per square foot.

The report, titled "Global Main Streets 2025," is now in its 35th edition and focuses on the prime retail locations across the globe, particularly in the luxury segment. New Bond Street's rental prices have outpaced renowned retail streets such as Milan's Via Monte Napoleone and New York's Upper Fifth Avenue, which have annual rental rates of $2,179 and $2,000 per square foot, respectively.

The dramatic increase in New Bond Street's rental rates is fueled by strong demand coupled with a limited supply, making it one of the most competitive retail locations in the world. The area between Clifford Street and Burlington Gardens, known for its high-end jewelry stores, has become a key player in the global retail market.

Overall, rental prices across the globe have seen an average increase of 4.2%, with 58% of the surveyed retail areas reporting price hikes, reflecting a significant demand outpacing supply. In the Americas, rental rates soared by 7.9%, driven largely by currency effects in South America, while Europe also enjoyed steady growth with a 4% increase, especially in Budapest and London. Conversely, in the Asia-Pacific region, rental growth slowed to 2.1%, as steady growth in India and Japan was offset by economic headwinds in China and Southeast Asia.

Dominic Brown, the head of the International Research division at Cushman & Wakefield and the report’s author, remarked, "Prime retail areas are benefiting from robust economic growth, easing cost of living burdens, and a recovery in discretionary spending. While growth trajectories vary by market, the strengths of flagship store locations are evident. Some cities are experiencing exceptional double-digit rent increases, while others continue to face pressure. The importance of physical retail in fostering deep brand engagement in consumer hotspots underscores the lasting appeal of the world’s leading shopping streets. This momentum is expected to strengthen as global conditions improve."

Highlights from the Asia-Pacific Region

In the Asia-Pacific region, rental growth is projected to slow from 2.8% in 2024 to 2.1% in 2025, but performances varied significantly across markets. Leading this growth, India's top-tier cities recorded a remarkable rental increase; for instance, Gurgaon's Galleria Market reported a staggering 25% rise, followed by Connaught Place in New Delhi at 14% and Kemp's Corner in Mumbai at 10%. Tokyo's Ginza and Omotesando experienced solid growth rates of 10% and 13%, respectively, while rentals in Hong Kong's Tsim Sha Tsui fell by 6%, reaching $1,515 per square foot. Sydney's Pitt Street Mall displayed a gradual increase of 4%, climbing to $795 per square foot, marking a positive trend after years of stagnation.

Sona Agarwal, Head of Retail for Cushman & Wakefield in the Asia-Pacific region, noted, "Despite economic challenges, the regional retail sector has showcased resilience. Countries like India, Korea, and Japan are driving growth with strong demand and premium offerings. Confidence has returned in Singapore and Sydney, leading to a gradual rental uptick. However, parts of Vietnam and Greater China continue to face some headwinds due to geopolitical and economic challenges. Overall, changing consumer habits and highly adaptive retail strategies are driving innovations in the 'phygital' (physical and digital) experience, positioning this dynamic region for long-term growth."

Download the full report in PDF format for more insights.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a global leader in commercial real estate services, listed on the New York Stock Exchange. The company has approximately 52,000 employees across 400 offices in around 60 countries. With core services in facility management, transaction services, appraisal services, tenant representation, leasing, and project management, Cushman & Wakefield is projected to achieve a total revenue of $9.4 billion in 2024. Guided by the philosophy that "Better never settles," the firm has earned recognition for its award-winning culture and has garnered numerous accolades from industry and business leaders. For more information, visit www.cushmanwakefield.com.