- In 2024, 83 new luxury stores were opened on 20 key shopping streets in Europe
- Availability of space remains a challenge: 17 streets have a vacancy rate of less than 5%, six of them have no vacant spaces
- Rents on premium shopping streets are now 3% higher than in 2018; growth of 3.6% in 2024
- Pařížská Street in Prague welcomed five new luxury stores in 2024 and expects more exciting brands in 2025
PRAGUE, 10 March 2025 – Luxury goods retailers remain active. In 2024, a total of 83 new luxury stores were opened on 20 key premium streets in Europe in 16 cities and 12 countries, according to a study by real estate consultancy Cushman & Wakefield titled European Luxury Retail 2025. Prague and its Pařížská Street welcomed five new luxury stores, and 2025 is expected to be a record year in this regard.
Pařížská Street in Prague is the most dominant luxury shopping destination in all of Central and Eastern Europe. It hosts over 50 stores of well-known brands, most of which are directly represented. Brands like Louis Vuitton, Gucci, Prada, Chanel, Celine, Bulgari, Tiffany & Co., and many others have their flagship stores for the region here.
In 2024, five new luxury stores were opened on the street and its immediate surroundings, including the flagship store of Patrizia Pepe at Pařížská 21, The Brands on Maiselova Street, Le Labo and The Ingredients on Vězeňská Street, and the first Czech boutique of Tudor on Old Town Square. In 2025, Cartier is also expanding its store.
Outside Pařížská Street, Prague's position as a key luxury goods market is further strengthened by the opening of Balmain Hair Couture on Dlouhá Street.
Two other major development projects, to be completed in 2025, will significantly expand this area. These are:
- The conversion of the former InterContinental Hotel into Fairmont Golden Prague with a total of 7 new stores covering 1,200 sq m of retail space
- The Pařížská 25 project by Kaprain Real Estate, which will add another 1,000 sq m of luxury retail space and luxury residential development of 19 apartments on the upper floors.
Jan Kotrbáček, Head of Retail Agency CEE, Cushman & Wakefield: "The strong demand for luxury brands on Pařížská Street, with zero vacancy of existing retail spaces at the end of 2024, underscores its enduring appeal as a premier luxury shopping destination in Central and Eastern Europe."
The position of Pařížská as a top luxury center is stronger than ever, thanks to zero vacancy of retail spaces at the end of 2024 and the anticipated opening of new stores. Fairmont Golden Prague will host the Czech debuts of jewellery brands Grenardi, Pasquale Bruni, and Damiani, a new flagship store of Max Mara, a new art gallery Kodl Contemporary, and other prestigious brands to be announced soon. Fairmont Golden Prague will offer not only new retail spaces but also 320 hotel rooms and suites, complemented by world-class bars, restaurants, spas and wellness facilities, and revitalized public spaces.
Marjan Gigov, Associate, Lead Luxury Retail Leasing CE, Cushman & Wakefield, adds: "The arrival of these renowned luxury brands at Fairmont Golden Prague marks a new chapter for luxury retail in Prague and strengthens its position on the global stage. With a total of seven newly opened stores in the project itself, 2025 will be the strongest year for luxury retail activity in the Czech Republic."
Luxury in Europe
According to the study, the luxury fashion and accessories segment accounted for nearly half of all openings with 41 stores. Jewellery and watch brands opened a total of 26 stores in 2024, up from 21 in 2023.
Brands owned by LVMH, Richemont, and Kering accounted for just over a third of new stores. This total number is consistent with 2023, but the distribution among the three brand houses has changed, with LVMH leading with 15 stores opened in 2024.
A slight decrease in the number of store openings reflects modest sales growth in luxury retail, but also limited availability of spaces where brands want to invest. The vacancy rate has generally decreased, with 17 out of 20 key streets having a vacancy rate of less than 5%, and six having 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.”
