List of Top 10 Most Expensive Markets in the World and India 2023 – Jagran Josh

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Emerging from the unprecedented challenges of the global pandemic, the retail sector has encountered a fresh set of hurdles in the preceding year. The confluence of higher, albeit alleviating, inflation, escalating interest rates, and decelerating economic growth has created a sustained strain on both consumers and retailers. Further complicating matters is the ongoing uncertainty surrounding the vibrancy of prime Central Business Districts (CBDs), particularly as the “return to the office” remains lacklustre in many parts of the world. Additionally, international tourism has yet to fully recover to pre-pandemic levels.

However, amid these challenges, prime retail destinations have exhibited resilience, showcasing a notable rebound with predominantly positive rental growth over the past year. Globally, rents have surged by an average of 4.8% in the last 12 months, marking an increase from the 3.7% growth observed in the preceding year.


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List of 10 Most Expensive Markets In The World 2023

The turbulent times brought about by the pandemic, coupled with supply chain bottlenecks, prompted an imbalance between demand and supply across various products and service lines. This phenomenon cascaded into pricing dynamics, sparking the initiation of a robust inflationary cycle. Responding assertively, central banks in numerous economies implemented unprecedented rate hikes, aiming to curb inflation by rendering money more expensive.

1. U.S.
2 . Italy
3. Greater China
4. United Kingdom
5. France
6. Japan
7. Switzerland
8. Australia
9. South Korea
10. Austria

The following list, detailing the 10 most expensive markets in the world for 2023, is derived from a comprehensive report titled “THE RESILIENCE OF RETAIL,” published by Cushman & Wakefield, a distinguished global real estate service provider with a century-long legacy. The rankings underscore the dynamic landscape shaped by fiscal and monetary stimulus, supply chain complexities, and the resiliency of prime retail destinations in navigating the evolving economic terrain.

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List of Expensive Markets in the World 2023

The international rental landscape has seen a notable surge of 4.8% in the last 12 months, surpassing the 3.7% growth observed in the previous year. In 2023, Asia Pacific took the lead globally, boasting a robust 5.3% growth, a significant improvement from the preceding year’s 1.1% growth. Meanwhile, Europe, fueled by a remarkable uplift in Türkiye, accelerated from a 0.9% year-over-year growth in Q3 2022 to an impressive 4.2% year-over-year in Q3 2023. Conversely, the United States experienced a slowdown from the previous year’s remarkable 17.0%, settling at a more sustainable 3.2%.  Here is the complete list:

Global Ranking 2023

Global Ranking 2022

Market

City

Location

Rent (USD/sq.ft/yr)

Rent (EUR/sqm/yr)

Pre-pandemic to present (LCY)

YOY (LCY)

1

1

U.S.A

New York City

Upper 5th Avenue (49th to 60th Sts)

$2,000

€20,384

14%

0%

2

3

Italy

Milan

Via Montenapoleone

$1,766

€18,000

31%

20%

3

2

Greater China

Hong Kong

Tsim Sha Tsui (main street shops)

$1,493

€15,219

-39%

4%

4

4

United Kingdom

London

New Bond Street

$1,462

€14,905

-11%

0%

5

5

France

Paris

Avenues des Champs-Élysées

$1,120

€11,414

-18%

0%

6

6

Japan

Tokyo

Ginza

$912

€9,299

0%

0%

7

7

Switzerland

Zurich

Bahnhofstrasse

$907

€9,243

-2%

1%

8

8

Australia

Sydney

Pitt Street Mall

$747

€7,612

-24%

0%

9

9

South Korea

Seoul

Myeongdong

$642

€6,542

-19%

5%

10

11

Austria

Vienna

Kohlmarkt

$506

€5,160

6%

2%

Regional and Local Dynamics:
While regional growth remained relatively bound between 3% and 6%, substantial variations occurred at the local market level. Istanbul witnessed a staggering 120% increase in rents over the past year, propelled by rampant inflation in Türkiye, reaching 85.5% in October 2022 and still at 61.5% as of September 2023. Notably, Vietnam, Japan, and India all recorded average growth ranging from 12% to 18%. Japan’s growth was centred around Midosuji in Osaka, while Banjara Hills in Hyderabad led in India, with rental increases of 60% and 40%, respectively. Conversely, Chicago and Xiamen experienced steep rental declines of -25%, and Shenzhen also recorded a decrease exceeding 20%.

Market Analysis:
The markets with the most significant downward pressure on rents are predominantly situated in the U.S. and mainland China, accounting for nine of the bottom 10 locations. This reflects economic headwinds in mainland China as the central government implements measures to stimulate growth. Simultaneously, new supply entering markets like Shenzhen, Dalian, and Xiamen has intensified competition for tenants. In the U.S., the situation is nuanced; while certain areas in Seattle, Chicago, and Miami experienced substantial rental declines, other locations within these cities, such as Oak Street in Chicago and the Wynwood neighbourhood in Miami, recorded growth of over 9% year-over-year as retailers relocated to areas with increased vibrancy and foot traffic.

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Most Expensive Markets In India 2023

Delhi’s Khan Market has been identified as the most expensive retail market in India, securing the 22nd position in the global ranking of main street markets. The market exhibited a notable 3% year-on-year (YoY) growth in its rentals. Additionally, Banjara Hills in Hyderabad led the Indian market, registering substantial rental increases of 60% and 40%. Notably, 16 Indian main streets secured positions among the 51 most expensive main street markets in the APAC region, underlining India’s significant presence in the global retail market. Here is the complete list:

India Ranking 2023

Global Ranking 2023

Global Ranking 2022

Market

City

Location

Rent (USD/sq.ft/yr)

Rent (EUR/sqm/yr)

Pre-pandemic to present (LCY)

YOY (LCY)

1

22

21

India

New Delhi

Khan Market

$217

€2,208

7%

3%

2

30

31

India

New Delhi

Connaught Place

$152

€1,546

5%

0%

3

31

32

India

Gurgaon

Galleria market

$144

€1,472

43%

13%

4

33

33

India

Mumbai

Linking Road, Western Suburban

$116

€1,178

0%

7%

5

37

38

India

Kolkata

Park Street

$85

€869

7%

13%

6

39

39

India

Mumbai

Fort/Fountain

$72

€736

25%

11%

7

40

40

India

Mumbai

Kemps Corner

$79

€699

10%

19%

8

41

41

India

Bengaluru

Brigade Road

$58

€589

14%

5%

9

42

42

India

Bengaluru

Vittal Mallya Road

$53

€545

-5%

3%

10

45

45

India

Pune

M G Road

$43

€442

-19%

3%

In the Asia-Pacific region, Anna Nagar 2nd Avenue and Pondy Bazaar in Chennai have secured positions as some of the most affordable locations, with rents at $22 per sqft per year (Rs 152.7 per sqft per month) and $24 per sqft per year (Rs 166.6 per sqft per month), respectively. Meanwhile, Banjara Hills in Hyderabad experienced a notable 40% growth in rentals, positioning itself as one of the relatively more affordable markets in the region despite the significant uptick.

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