- Cushman & Wakefield analysis reveals that 83 new luxury retail stores opened across Europe’s 20 key luxury streets in 2024, down from 107 in 2023
- Availability of space remains a challenge: 17 streets have a vacancy of less than 5%, six having none at all
- Rents on luxury high streets now 3% higher than 2018 levels; growth of 3.6% on luxury streets in 2024
- Retailers’ demand for key locations continuing, prompting creativity and strategic investment
Brussels, 3 March 2025 – The European luxury retail real estate market continues to show resilience with further store openings in 2024 despite another year of transition in the luxury retail market, according to Cushman & Wakefield’s European Luxury Retail 2025 report.
A total of 83 new luxury stores opened on Europe’s 20 key luxury streets across 16 cities in 12 countries in 2024, down from 107 in 2023, with the fashion & accessories segment accounting for nearly half of all store openings with 41. Jewellery & watches brands opened a total of 26 stores in 2024, up from 21 in 2023, as ‘hard luxury’ continues to appeal to luxury consumers.
Brands owned by LVMH, Richemont and Kering accounted for just over a third of the new stores. This total is in line with 2023, but the distribution between the three brand houses has shifted, with LVMH leading the field with 15 store openings in 2024.
The slight reduction in the number of store openings reflects not just a more modest sales growth environment in luxury retail, but also the dynamics within individual markets including the availability of spaces in which brands are looking to invest. Vacancy rates have largely tightened across the board, with 17 of the 20 key streets having vacancy of less than 5%, six of which have no vacancy at all.
Tight vacancy and retailers’ acute sensitivity to location has helped to drive rental growth on luxury streets to 3.6% in 2024 (3% in 2023) and rental levels on luxury streets are also now 3% higher on average than in 2018. A third of luxury streets across Europe reached record high rents in 2024, including Milan’s Via Montenapoleone which is now the most expensive retail destination in the world. Cushman & Wakefield projects rents on luxury high streets to increase by an average of 1-3% annually between 2025 and 2028.
Rob Travers, Head of EMEA Retail at Cushman & Wakefield, said: “Whilst retailers adapt and innovate in an environment of demanding consumers, global pressures and local market challenges, physical stores continue to play a critical role in customer engagement. Stores are seen as a ‘brand universe’ where consumers can explore and purchase luxury products, and enjoy in-person experiences that create meaningful, lasting connections with luxury brands. Retailers’ need for the right real estate in the right locations means that prime luxury retail pitches continue to be in demand.”
The long-term strategic focus on luxury precincts means than luxury retailers have continued to invest in retail real estate in key streets, particularly in London, Paris, and Milan. These investments are strategic and selective, with the goal of preserving positioning on these key streets which luxury brands know will remain part of their store strategies over the long term, and allow them to commit capital to impressive transformations of physical spaces.
Sally Bruer, Head of EMEA Retail Research at Cushman & Wakefield, said: “With a growing appetite for ‘more in store’, many luxury brands are actively looking for opportunities to expand store sizes. These larger stores allow brands to not only carry wider product ranges but also to create exclusive areas for customer experiences. Constrained by a lack of available space, retailers are having to think creatively. Real estate strategies include expanding existing stores into neighbouring units or floors or relocating to new, far larger properties, all to position the store as a bold, brand-engaging statement.
“We are already recording an impressive pipeline of scheduled store openings for 2025 and beyond which we expect to grow further as economic conditions improve and brands commit to new physical stores.”
Luxury in Belgium: premium retail performs strongly
Brussels’ luxury retail market continues to strengthen, with store openings on Boulevard de Waterloo rising to five in 2024, up from three in 2023. The city’s premier luxury shopping destination remains highly sought after, as evidenced by a declining vacancy rate of 3%, down from 4% last year.
Retailers are increasingly focusing on larger flagship stores that offer exclusive, experience-driven spaces, and this trend is equally evident in Belgium. From private client lounges to bespoke in-store services, brands are elevating their presence in key luxury locations—a vision exemplified by Cartier’s newly opened store. This sustained demand is reflected in prime retail rents, which have risen by 1% year-on-year.
Further reinforcing Brussels’ appeal, Australian luxury fashion house Zimmermann will open its first Belgian store on Boulevard de Waterloo in Summer 2025, a transaction guided by Cushman & Wakefield.
With € 1.4 billion in luxury retail sales, Belgium remains a strategic market for international brands. The continued scarcity of prime retail space is expected to support rental growth and sustain retailer interest in core luxury locations.