Budapest’s Fashion Street Surpasses Váci Street as the City’s Most Expensive Shopping Destination in 2025
A New Leader in Luxury Retail
In a remarkable shift in Budapest’s retail landscape, Fashion Street has overtaken the historically dominant Váci Street to become the city’s most expensive and sought-after shopping street in 2025. This change was revealed in the latest global ranking of world’s most expensive retail locations by Cushman & Wakefield, published in their renowned report Main Streets Across the World. Fashion Street’s rapid rise reflects its growing prestige as a luxury shopping destination and a hub for premium brands.
Global Context and Budapest’s Place
The 2025 report crowned London’s New Bond Street as the world’s most expensive retail street, edging out Milan’s Via Montenapoleone and New York’s iconic Upper Fifth Avenue. Across continents, rental rates for prime retail locations increased by an average of 4.2%, with Europe maintaining a steady 4% growth driven notably by Budapest and London. Against this backdrop, Budapest’s Fashion Street posted an impressive 33% growth in rental prices, a standout performance that propelled it ahead of Váci utca in local rankings.
What Makes Fashion Street So Appealing?
Fashion Street, located near downtown Budapest and the pedestrian-friendly Váci utca, offers a blend of upscale shopping, elegant architecture, and an inviting atmosphere. Its emergence as the preferred retail location is due in part to a high volume of pedestrian traffic, a picturesque setting, and the clustering of flagship stores from globally recognized brands. Many retailers that once chose Váci utca for their flagship stores have shifted to Fashion Street, attracted by its vibrant environment and increasing shopper visibility.
The street is not just about shopping; it’s a lifestyle destination where visitors can enjoy stylish cafés and fine dining. Its environment supports immersive brand storytelling through sophisticated store designs and premium customer experiences—a key reason for its popularity with luxury labels.
Váci utca: Still Vibrant but Evolving
While Váci utca remains one of Budapest’s most iconic shopping streets, its character has been changing. Known for a mix of international fashion brands, tourist shops, and eateries, it attracts a broad audience and bursts with lively energy, especially during the evenings and holiday seasons. It continues to be a must-visit for many tourists seeking souvenirs or casual shopping.
Best deals of Budapest
However, some shoppers note that prices can be high, sometimes rivaling airport retail, and public amenities like restrooms are limited. Despite this, the street’s festive decorations and proximity to key landmarks maintain its appeal as a cultural and social hub.
The Future of Budapest’s Retail Scene
According to Viktória Szabó, head of Cushman & Wakefield Hungary’s retail division, Fashion Street’s success signals growing demand for premium retail spaces in Budapest. The shift suggests further development opportunities for high-end pedestrian shopping streets, reflecting the city’s strengthening reputation as a key commercial center in Central and Eastern Europe.
For visitors, whether you prefer the lively traditional vibe of Váci utca or the upscale elegance of Fashion Street, Budapest offers a shopping experience rich in variety and embedded in its stunning urban backdrop.
Exploring Budapest’s Premier Shopping Streets
Budapest’s Fashion Street and Váci utca are centrally located and pedestrian-only, making them ideal for leisurely strolls. Accessible from Vörösmarty tér metro station and close to major city landmarks, both streets are popular for exploring on foot. Visitors can alternate between the exclusive boutiques and fashionable venues on Fashion Street and the bustling shops and vibrant atmosphere lining Váci utca.
Whether shopping for luxury goods, enjoying café culture, or soaking in the city’s beautiful architecture and seasonal decorations, these streets encapsulate Budapest’s unique blend of history, style, and commerce that enchants tourists year-round.
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