Shoppers laden with bags from Fendi, Loewe, Prada and other designer labels clog the narrow sidewalks of Milan’s swankiest shopping street, bringing joy to the purveyors of high-end luxury goods this, and every, holiday season.

There’s even more to celebrate this year: A commercial real estate company has crowned Via MonteNapoleone as the world’s most expensive retail destination, displacing New York’s Fifth Avenue.

The latest version of American firm Cushman & Wakefield’s annual global index, which ranks shopping areas based on the rent prices they command, is a sign of Via MonteNapoleone’s desirability as an address for luxury ready-to-wear, jewelry and even pastry brands.

The average rent on the Milan street has surged to 20,000 euros per square meter ($2,047 per square foot), compared with 19,537 euros per square meter ($2,000 per square foot) on an 11-block stretch of upper Fifth Avenue.

Via MonteNapoleone’s small size – it’s less than one-quarter mile long – and walking distance to services and top cultural sites are among the street’s key advantages, according to Guglielmo Miani, president of the MonteNapoleone District association.

“Not everything can fit, which is a benefit” since the limited space makes the street even more exclusive and dynamic, said Miani, whose group also represents businesses on the intersecting side streets that together with Via MonteNapoleone form an area known as Milan’s Fashion Quadrilateral.

The biggest brands on the street make 50 million euros ($52.4 million) to 100 million euros in annual sales, Miani said, which goes a long way to paying the rent. Tiffany & Co. is preparing to take up residence on Via Montenapoleone, and long-time tenant Fendi is expanding.

The MonteNapoleone District says 11 million people visited the area this year through November, but there’s no way to say how many were big spenders vs. window shoppers. The average shopper on Via MonteNapoleone spent 2,500 euros ($2,624) per purchase between August and November – the highest average receipt in the world, according to the tax-free shopping firm Global Blue.

The street is a magnet for holiday shoppers who arrive in Maseratis, Porsches and even Ferraris, the sports car’s limited trunk space notwithstanding. Lights twinkle overhead, boutique windows feature mannequins engaged in warm scenes of holiday fun, and passersby snap photos of expertly decorated cakes in pastry shop displays.

A visitor from China, Chen Xinghan, waited for a taxi with a half-dozen shopping bags lined up next to him on the sidewalk. He said he paid half the price for a luxury Fendi coat that he purchased in Milan than he would have at home.

“I got a lot,” Chen acknowledged. “It’s a fantastic place, a good place for shopping.”

A few store windows down, Franca Da Rold, who was visiting Milan from Belluno, an Italian city in the Dolomites mountain range, marveled at a chunky, meters-long knit scarf priced at 980 euros ($1,028).

“I could knit that in one hour, using 12-gauge knitting needles as thick as my fingers, and thick wool. Maximum two hours,” Da Rold said, but acknowledged the brand appeal.

Despite upper Fifth Avenue getting bumped to the No. 2 spot on the Cushman & Wakefield list, the organization that serves as the Manhattan street’s guardian and chief promoter had praise for MonteNapoleone’s achievement.

“Milan’s investment in its public realm is paying off, which is a win for their shoppers, businesses and city as a whole,” said Madelyn Wils, the interim president of the Fifth Avenue Association.

But she also expressed confidence that with new investments and a record year for sales on Fifth Avenue, “we’ll be back on top in no time.”