For the first time in history, Europe has clinched the top spot in the global rankings for the world’s most expensive shopping street.

Milan’s Via Monte Napoleone has surpassed New York’s iconic Fifth Avenue, with rental prices surging by 11 percent over the past year to reach an eye-watering $2,047 (£1,618) per square foot, according to a report released on Wednesday by real estate group Cushman & Wakefield.

This is a significant milestone for Milan’s growing prominence as a global luxury capital.

Known for its compact but exclusive array of high-end boutiques, Via Monte Napoleone outshone its US rival, where rents on Upper Fifth Avenue remained steady at $2,000 (£1581) per square foot for the second consecutive year.

London’s New Bond Street ranked third at $1,762 (£1393), followed by Hong Kong’s Tsim Sha Tsui at $1,561 (£1234). Paris’ Avenue des Champs Élysées rounded out the top five with rents of $1,282 (£1013) per square foot.

Via Monte Napoleone’s petite size plays a significant role in driving up rental costs.

“It is very short compared to Fifth Avenue, New Bond Street, or Champs Élysées,” said Thomas Casolo, Cushman & Wakefield’s head of retail for Italy.

“The space is very scarce,” he added, emphasising that high demand and limited availability are expected to keep rents rising.

The street’s allure has attracted major investments, including Gucci parent company Kering’s €1.3 billion (£1.08bn) purchase of a building on the street earlier this year.

Other luxury giants, such as Chanel and Gucci, have also expanded their presence, adding to an already illustrious roster of brands like Hermès, Versace, Cartier, Bottega Veneta, and Celine.

This ascent comes amid a broader boom in Milan’s luxury market, fueled by an influx of high-net-worth individuals and thriving tourism.

Milan hosts one of the world’s premier fashion weeks, along with Design Week, which showcases cutting-edge furniture and interior design.

The city’s appeal is bolstered by favorable migration policies and tax incentives, attracting wealthy individuals looking to relocate, according to a report by Henley & Partners.

The latest Cushman & Wakefield rankings of global shopping destinations reveal the following:

1. Via Monte Napoleone, Milan
2. Upper Fifth Avenue, New York
3. New Bond Street, London
4. Tsim Sha Tsui, Hong Kong
5. Avenue des Champs Élysées, Paris
6. Ginza, Tokyo
7. Bahnhofstrasse, Zurich
8. Pitt Street Mall, Sydney
9. Myeongdong, Seoul
10. Kohlmarkt, Vienna