BGC keeps ranking as 43rd most expensive retail street worldwide

MANILA, Philippines —  Bonifacio Global City (BGC) in Taguig remained the 43rd most expensive retail street in the world, based on a report by a commercial real estate services firm.

In its Main Streets Across The World 2024 report, Cushman & Wakefield placed BGC in 43rd spot, unchanged from its rank last year.

The report noted that BGC retail rents increased three percent year-on-year to $51 per square foot per year.

Via Montenapoleone in Milan, Italy is the most expensive retail street this year, overtaking New York City’s Fifth Avenue, and marking the first time a European location topped the list.

“This reflects robust rental growth on the Italian street, exceeding 30 percent in the last two years, further bolstered this year by the euro’s appreciation against the US dollar,” Cushman & Wakefield said.

Retail rents at Via Montenapoleone registered an 11 percent increase at $2,047 per square foot per year. New York’s Upper Fifth Avenue posted the second most expensive rent at $2,000 per square foot.

Other retail streets in the top five are New Bond Street in London, Tsim Sha Tsui in Hong Kong and Avenue de Champs-Elysees in Paris.

The annual Main Streets Across the World ranked retail locations in 138 global cities, tracking year-over-year changes in rent.

The report noted that in global terms, rents across the 138 locations tracked have crossed another benchmark – now being on average nearly six percent above pre-pandemic levels, due to strong rental growth of over four percent year-on-year.

It added that 57 percent or 79 of the locations experienced positive rental growth, with just 14 percent or 19 locations registering rental decline. The remaining 29 percent or 40 locations were stable.

“Beneath this global average, the Americas continues to be the strongest performing region, propelled by rent growth of almost 11 percent year-on-year in the US – a significant increase from last year. In comparison, rent growth in Europe and Asia-Pacific slowed, registering growth of 3.5 percent and 3.1 percent, down from 4.2 percent and 5.3 percent, respectively,” Cushman & Wakefield said.

Cushman & Wakefield Philippines director and head of research, consulting and advisory services Claro Cordero earlier expressed a moderate outlook for the Philippine retail sector in the medium term.

“The seasonal surge in spending is anticipated to enhance retail sales and increase customer visits but the medium-term growth prospects for the retail shopping sector remain moderate as consumers adjust their spending habits in response to the gradual reduction in living costs,” he said.

“In this context, retail spaces vacated by restaurants, services, and specialty shops catering to POGO employees, as well as those in mall developments that have yet to adapt to new shopper preferences, will add to the available stock in the market,” he added.