Tens of thousands of people attended the market on Saturday, while there were dozens of stalls and an array of street performers.
Council events adviser Olha Viazenko said attendance and stallholder numbers exceeded expectations, and the weather was perfect.
"An event of this size in a central city location requires a lot of logistical planning but set-up was seamless thanks to the good planning from stallholders in partnership with our team.
"We were particularly happy with the quality of the products being sold. Having our local and international entertainers and food vendors gave the day a vibrant, family-friendly atmosphere as well."
Ms Viazenko said the council would review the day and look for opportunities to improve, but anecdotal feedback suggested "everyone had a positive experience, which positions this event well for the future".
City councillor Steve Walker said it was "vindication" for those who supported the George St upgrades from their inception.
"It’s amazing how much push-back it got at the time, but this event showed what could happen if you have 21st century ideas."
Metal artisan James Bryan, who was selling Steampunk-related paraphernalia, said the day proved the upgrades and pedestrianisation of George St were ultimately the right thing to do.
"I have a copy of a document produced by the Dunedin City Council back in 1967 and it shows an artist’s impression standing here at Hanover St, looking south.
"The main street is pretty much now a replica of what they were trying to do 50-something years ago."
Mr Bryan said while iterations of the market in Thieves Alley had been busy, holding it in George St made the experience more enjoyable for retailers and customers.
Kara Redmond, who was selling poi-poi products, said she enjoyed the atmosphere and the diversity of the crowd.
"There’s just so many people from different walks of life who enjoy the multicultural aspects just as much as I do."
Street performer Andy Spigola, of Italy, said Dunedin was the perfect way to wrap up his first visit to New Zealand, and he enjoyed the crowd reaction to his routines, which ranged from stilt-walking to balancing objects on his body to contortions.
"I like to create a community and also bring some laughing to the people.
"I think the laughing together, it’s a good weapon to create community. Because laughing needs another laugh, so it’s something magic and healthy."
