Editor’s Note
Despite global sector shifts, the luxury market shows remarkable resilience. A new report highlights 83 store openings on Europe’s premier streets in 2024, underscoring sustained brand demand for prime locations and innovative investment strategies.
In a global context of sector transformation, the luxury market demonstrates resilience, recording 83 openings of luxury stores on iconic European thoroughfares, according to the European Luxury Retail 2025 report by Cushman & Wakefield. Demand from brands for key locations remains strong, stimulating creativity and investment strategies. The European luxury commercial real estate market continues to show resilience with new store openings in 2024 within an evolving luxury retail landscape.
A total of 83 openings were recorded across the top 20 luxury streets in Europe, spanning 16 cities in 12 countries in 2024, down from 2023 (107). The fashion and accessories segment accounts for nearly half of all openings (41). Jewelry and watch brands opened a total of 26 stores in 2024, compared to 21 in 2023, as “pure and hard luxury” continues to appeal to luxury consumers.
Brands owned by LVMH, Richemont, and Kering represent just over one-third of new openings. This total is consistent with 2023, but the distribution among the three groups has shifted, with LVMH taking the lead with 15 boutique openings in 2024.
The slight reduction in store openings reflects not only a slowdown in revenue growth within the luxury sector but also the unique dynamics of each market, particularly the availability of locations targeted by brands. Vacancy rates have tightened significantly overall, with 17 of the top 20 streets having a vacancy rate below 5%, and six streets fully occupied.
The low vacancy rate and brands’ appetite for highly targeted locations contributed to rental growth on luxury streets reaching +3.6% in 2024 (3% in 2023). Rental levels on these streets are also on average 3% higher than in 2018. One-third of luxury thoroughfares across Europe reached record rental levels in 2024, including Milan’s Via Montenapoleone, the world’s most expensive retail destination. Cushman & Wakefield anticipates rental growth on luxury streets of 1% to 3% per year between 2025 and 2028.
Major luxury groups continue to make long-term investments in commercial locations situated on prime luxury streets, particularly in London, Paris, and Milan. These investments are strategic and highly targeted, aimed at maintaining brand positioning on iconic thoroughfares, thereby justifying significant capex commitments to transform these physical spaces into true showcases.
details Sally Bruer, Head of Retail for the EMEA region at Cushman & Wakefield.
Following a period of intense activity for the luxury sector in 2023, the pace of openings has slowed this year in Paris while remaining steady in regional areas, notably within key “resort” cities such as St Tropez, Cannes, and Nice. Conversely, lease signings recorded a nearly 30% increase in the capital compared to 2023, and Paris is set to soon become the epicenter of luxury retail again, accounting for three-quarters of the year’s signings.
specifies Vincent Ascher, Head of Key Account and Luxury France at Cushman & Wakefield.