European Luxury Retail: Prague Expects a Record Year
The European luxury retail market continues to thrive, with 83 new luxury stores opening in 2024 across 20 key shopping streets in 16 cities and 12 countries, according to Cushman & Wakefield’s latest insights. While slightly fewer than the 107 openings in 2023, demand for prime retail locations remains high, keeping vacancy rates low and rents on the rise. As prime retail space becomes scarcer, brands are prioritizing flagship stores in strategic markets.
Luxury brands continue expanding across Europe, but securing prime retail space is increasingly challenging. Of the 20 key shopping streets analyzed, 17 have a vacancy rate below 5%, and six have no available space at all. This scarcity has pushed prime high-street rents up by 3.6% in 2024, making them 3% higher than in 2018. With limited availability, brands are rethinking store strategies, investing in fewer but larger and more immersive retail experiences.
Prague’s Pařížská Street: A Key Luxury Destination
Pařížská Street, the leading luxury shopping destination in Central and Eastern Europe, continues to attract top-tier brands. In 2024, five new luxury stores opened, including Patrizia Pepe, The Brands, Le Labo, The Ingredients, and Tudor’s first boutique in the Czech Republic. More openings are expected in 2025, with Cartier planning an expansion.
Beyond Pařížská, Prague’s luxury retail market is growing, with Balmain Hair Couture opening on Dlouhá Street. Two major developments—Fairmont Golden Prague and Pařížská 25—will add over 2,200 sq m of new luxury retail space by 2025, further reinforcing the city’s role as an emerging luxury hub.
Outlook for Luxury Retail
Despite global challenges, luxury brands continue investing in flagship stores. With demand exceeding supply, rents are expected to rise by 1–3% annually from 2025 to 2028.
Key locations such as London, Paris, Milan, and Prague will remain priority markets for luxury retailers, reflecting confidence in the long-term strength of the sector.
Read Cushman & Wakefield’s European Luxury Retail report to find out more.
