Main Streets Across The World Report 2024 – Key insights from the report

Cushman & Wakefield, in its 34^th year, released its 34^th Edition of the Main Streets Across the World report. The report confirms the value of main streets around the world, key economic and social trends shaping their value and their role in crucial global and local business decisions.

Headline rents worldwide have finally surpassed pre-pandemic levels, demonstrating the remarkable resilience of main streets in the face of economic challenges. Because of their strategic value and potential to draw customers, retailers continue to focus on prime locations. They show their adaptability and strength by responding to changing consumer demands and economic conditions.

Challenges like inflation and rising interest rates have reduced consumer confidence. However, the anticipated additional rate cuts provide a positive outlook for the recovery.

Main street locations are becoming more important for long-term business growth, as retailers are dealing with cost pressure challenges and adapting to changing consumer loyalty trends that call for an Omni channel customer journey.

Global Rental Growth Trends

The report indicates that over half of 138 locations tracked witnessed Year-On-Year (YoY) rental growth, though there is rental growth variation considerably across the world. The demand for retail space on important streets has increased due to retailer competition and space constraints, which have raised rental prices.

The U.S. has seen especially strong rental growth, with a YoY increase of nearly 11%. This represents a notable increase over prior years and demonstrates the robustness of the US market in the world retail landscape. On the other hand, rent growth was slower in Europe and Asia Pacific, rising by 3.5% and 3.1%, respectively.

Iconic main streets and their rankings

Since 2023, there have been substantial changes to the ranking of the world’s most iconic main streets.

With average rentals rising to $2,047 per square foot annually compared to Fifth Avenue’s $2,000, which has not moved since 2022, Milan’s Via Montenapoleone has taken the lead as the most costly retail area in the world. 

The main reason for this is the Euro’s appreciation against the U.S. dollar this year and strong rental growth over the past two years.

With an annual rental value of $1,762 per square foot, London’s New Bond Street has also climbed in the rankings and surpassed Tsim Sha Tsui in Hong Kong, where annual rental values are $1,607 per square foot per year.

Paris’ Avenue des Champs-Élysées has held onto its fifth place, but the gap to sixth has shrunk as Tokyo’s Ginza district had robust year-over-year growth of 25%.

Khan Market in New Delhi, India, is one of the most costly main streets in the Asia-Pacific region, ranking twenty-third in 2024 — a one-place increase from the previous year — beating out well-known sites like Bangkok’s Central Retail District, Jakarta’s Prime Main Street, and Manila’s Bonifacio.

With yearly rates hitting US$ 229 (Rs. 19,350.16) per square foot, this increase further solidifies Khan Market’s status as a premium destination.

The top three most costly retail high streets in India are in Delhi-NCR. With yearly rentals of USD 158 (Rs. 13,335) and USD 156 (Rs. 13,166) per square foot, respectively, Connaught Place (Delhi) and Galleria Market (Gurgaon) are similarly well-known places like Khan Market.

Brands looking for premium retail sites are paying more because of the increased competition in these areas due to the limited amount of available space.

On year over year, Indira Nagar 100 Feet Road in Bengaluru saw the largest rental growth, with 32% rising to US$ 47 per square foot annually.

On the other hand, at US$ 25 to US$ 26 per square foot each year, Chennai’s Anna Nagar and Pondy Bazaar, continue to be some of the

most reasonably priced high streets in the area.

Source: Cushman & Wakefield’s Main Streets Across the World report, 2024

The impact of changing economic conditions

Main streets have a considerable impact due to changing economic conditions, which lately have focused on interest rates and inflation. To stay ahead of the competition, retailers need to adjust to these circumstances.

A cost-of-living crisis, due to high interest rates and inflation, has generally lowered business and consumer confidence. Business confidence has been steadily improving as interest rate cuts have occurred, and consumer sentiment has begun to follow.

More interest rate cuts are in anticipation of providing a further economic stimulus.

The approach of the report and conclusion

One of the main characteristics of the Main Street Across the World report is it highlights YoY changes while considering foreign exchange rates and local metrics.

The global ranking features, of the report consider one street per country, while the regional rankings provide unfiltered headline rent prices per square foot for all cities within each region (Asia Pacific, Europe, Middle East and Africa, and the Americas).

In India, 16 prominent places featured in the list of Main Streets Across the World report – out of which the top three are from Delhi-NCR in the list, three from Mumbai and Bengaluru, two from Pune and Chennai and one from Kolkata.

Following are the cities and locations ranked as per Rent per sq.ft per month.

      Source: Cushman & Wakefield’s Main Streets Across the World report, 2024