One of the world’s most expensive streets is in Budapest

Budapest is home to one of the priciest streets in the world. Váci Street is among the global high street elite according to Cushman & Wakefield‘s yearly “Main Streets across the World” list. It shows Budapest’s position in the cutthroat world of international retail real estate.

Global leaders and trends

New York’s Fifth Avenue consistently tops the list as the world’s most expensive street, setting the benchmark at a staggering HUF 7.7 million (EUR 20.300) per square meter. Milan’s Via Montenapoleone follows it closely. London’s Bond Street and Paris’s Champs-Élysée also command high rents. Notably, Bahnhofstrasse in Zurich holds the title of the most expensive street in the Central European region, Index writes.

Shifts in Central and Eastern Europe

Munich slipped to 14th place, and Central and Eastern European capitals, including Budapest, Belgrade, Warsaw and Zagreb, followed closely. Surprisingly, despite a pandemic-induced decrease in property prices in the region, downtown streets like Váci Street saw a 27% drop in rent compared to 2019.

Local vs. global rankings

Understanding the rankings requires a distinction between global and local perspectives. The global list provides insights into the most expensive high street within each country. Delving deeper into the European ranking, Váci Street secures the 44th position, emphasising the significance of international competition. Notably, Central European streets outshine their counterparts in Italy, France, Germany and even London, revealing the heightened significance of Váci Street on the European stage.

The dominance of Vienna’s “Golden U”

Kärtner, Graben, and Kohlmarkt Straße in Vienna, collectively known as the ‘Golden U,’ continue to be the luxury heartbeat of the region. Home to renowned boutiques and the prestigious Steffl department store, these streets maintain their allure. Recent uncertainties around luxury department stores, such as Lamarr in Mariahilfer Strasse, hint at potential challenges for Vienna’s retail landscape.

Vienna’s little sister in luxury: Prague

Contrary to the past, Prague now challenges Budapest as Vienna’s luxury counterpart. Pařížská Street, connecting Prague’s Old Town Square to the Vltava River, hosts international fashion giants like Cartier, Dior and Chanel. The upcoming Fairmont Golden Prague Hotel and additional retail spaces suggest continued growth for Prague’s luxury scene.

Factors influencing street rankings

A street can attract prestigious tenants for a variety of reasons. The presence of competitors, tourist spending habits, local economic conditions, street length, and ownership structure all play pivotal roles. Streets owned by parent companies of high-end brands like Louis Vuitton, Dior, Chanel, or Hermès often emerge as prime locations.

The global ranking of main shopping streets provides a fascinating glimpse into the dynamic world of retail real estate. While Vienna‘s ‘Golden U’ maintains its prominence, Prague emerges as a rising luxury destination, challenging Budapest’s historical status. As factors such as economic stability, brand presence, and ownership structures continue to shape these rankings, the landscape of high streets in Central and Eastern Europe promises to evolve in the coming years.

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Source: Index