The growth of emerging markets led by China has made Hong Kong the most expensive shopping area in the world. A study done by Cushman & Wakefield reveals that New York has given way to Hong Kong as the retailers located in the luxury area of Causeway Bay paid an average of $2,630 per square foot. This was a growth of over 34% compared to the previous year and was fuelled by about 30% growth in sales driven by the tourists and mainland residents. London may be the most expensive when it comes to the super prime real estate but its Bond Street slipped out of the top ten list of the most expensive shopping area resulting from a weak national demand. We bring for you the top ten most expensive shopping area in the world.
Hong Kong’s Causeway Bay
Average annual rent: $2,630/square foot
The luxury goods on Causeway Bay witnessed greater demand mainly by mainland residents who find the prices in Hong Kong cheaper. Causeway Bay overtook 5th Avenue as the most expensive place for retailers.
New York City’s Fifth Avenue
Average annual rent: $2,500/square foot
New York’s Fifth Avenue was a close second registering an average annual rent of $2,500 per square foot. Due to the uncertainties of the prevailing economic environment the retailers are focusing on the tried and tested areas and that’s why Fifth Avenue is their first choice.
New York City’s Times Square
Average annual rent: $2,100/square foot
Times Square in New York City witnessed a marked increase in tourist arrivals leading to a substantial increase in sales of accessories like purses, watches and jewelry.
Hong Kong’s Central
Average annual rent: $1,856/square foot
The Central district of Hong Kong is home to most of the top global brands in luxury, watch and jewelry. The sales have seen a consistent upward trend boosting the rents even in the suburban areas of the main district.
Hong Kong’s Tsim Sha Tsui
Average annual rent: $1,547/square foot
Hong Kong has become the gateway to the booming markets of Asia and all its shopping areas have registered booming sales with increasing number of tourist arrivals from mainland China and other regions of the world. More and more retailers are heading to Hong Kong to take advantage of the booming sales.
Paris’ Avenue des Champs Elysées
Average annual rent: $1,129/square foot
The French Government has gone out of its way to welcome the growing number of Chinese tourists and it has helped the retailers in registering a 30% growth in sales. The upward trend has attracted investment in the field of retail development projects as well as luxury hotels. These investments are sure to pay off in the coming years.
New York City’s East 57th Street
Average annual rent: $1,100/square foot
The marginal improvement in the American economy has benefited the shopping areas of New York the most. East 57th Street is one of the most favored shopping areas of the city and the retailers are willing to pay exorbitant rents.
New York City’s Madison Avenue
Average annual rent: $1,100/square foot.
Madison Avenue houses several premier shops and retail stores. The trend is the same for all the high end shopping areas of New York and Madison Avenue is no exception. The area boasts of shops like Rebecca Taylor, Rag & Bone and Theory.
Average annual rent: $1,057/square foot
Any new brand entering Japan likes to do it through a store in Ginza, Tokyo. Brands like American Eagle and Old Navy entered Japan this year, drawing in crowds of shoppers and raising rents in the area.
Average annual rent: $972/square foot
Another prime street in Tokyo which has gained because of brands like Prada deciding to expand its presence in Japan. Omotesando is a preferred shopping area for anyone who wants to enter the Tokyo market or wants to expand their presence in one of the top luxury markets.