- Analysis by Cushman & Wakefield reveals that 83 new luxury retail stores opened on the 20 main arteries of Europe in 2024, compared to 107 in 2023;
- The supply of spaces continues to be a challenge: 17 streets have an availability rate of less than 5%, and 6 have no available space;
- Rents on luxury streets are currently 3% higher than 2018 levels; growth in 2024 was 3.6%;
- Avenida da Liberdade in Lisbon continued to attract new luxury brands in 2024, with a total of five stores opening throughout the year.
Despite being in a transition phase, the European luxury retail real estate market continues to show resilience with the opening of new stores in 2024, according to the European Luxury Retail 2025 report by Cushman & Wakefield.
In 2024, 83 new luxury stores opened on the 20 main arteries of Europe, located in 16 cities across 12 countries, compared to the 107 openings recorded in 2023. The fashion and accessories segment accounted for almost half of the total openings (41), while jewelry and watch brands opened a total of 26 stores, up from 21 openings in 2023, showing that "traditional luxury" continues to attract consumers in this sector.
Brands owned by major luxury houses LVMH, Richemont, and Kering were responsible for more than a third of the new stores. This total is in line with 2023; however, the proportion among the three brands has changed, as LVMH led the sector with 15 openings in 2024.
Avenida da Liberdade Continues to Attract Luxury Brands
Avenida da Liberdade continued to attract new luxury brands in 2024, with a total of five new openings. In December, the Italian fashion brand Paul & Shark opened a 190 sq.m store in the Liberdade 242 building, and in May, the Italian furniture design brand Molteni&C inaugurated its first flagship store in Lisbon (Liberdade 254), with around 400 sq.m spread over two floors.
Watch brands were also active on Avenida da Liberdade throughout 2024. In September, Patek Philippe (in partnership with David Rosas) opened its first boutique in the Liberdade 12 building. With around 200 sq.m, this store features a bar and a private VIP room. In December, IWC Schaffhausen, in partnership with the Tempus Group, also opened its first boutique in Portugal at No. 117 Avenida, also integrating a bar and works by Portuguese artist Camila Nogueira.
After an extensive renovation, Cartier reopened its main store in Lisbon at No. 240, and the store in the former Diário de Notícias building (Liberdade 266) was recently leased to a brand to be disclosed soon, with opening scheduled for this year.
"Avenida da Liberdade is the destination of choice for international luxury brands, and the fact that it is in the prime CBD – where the headquarters of major companies and 5-star hotels are located – creates the perfect habitat for these brands. Some buildings have good facades and areas that meet the brands' requirements, but the main challenge continues to be the number of available units," comments Maria José Almeida, Associate and luxury retail specialist at Cushman & Wakefield Portugal. "The vacancy rate on Avenida da Liberdade is just 2%, the same as at the end of 2023. The continued demand on this artery of the capital has driven rent growth, which has risen more than 9% since the end of 2023," concludes the expert.
Lack of Spaces Drives Up Rents Across Europe Vacancy rates have also decreased significantly in all markets analyzed by Cushman & Wakefield, with 17 of the 20 main streets registering less than 5% availability, and 6 of them presenting no available space. For this reason, the slight reduction in the number of openings in Europe reflects not only more moderate growth in luxury retail sales but also the difficulty for brands to find suitable spaces in an almost fully occupied landscape.
The scarcity of supply and retailers' desire to concentrate on a handful of arteries have driven rent growth on these streets by 3.6% in 2024 (3% in 2023), with these values currently being 3% higher on average than in 2018. A third of luxury streets across Europe reached record rents in 2024, including Milan's Via Montenapoleone, which is now the most expensive retail destination in the world. Cushman & Wakefield forecasts that rents on luxury streets will increase by an average of 1-3% per year between 2025 and 2028.
Rob Travers, Head of EMEA Retail at Cushman & Wakefield, states: "As retailers adapt and innovate in a context marked by demanding consumers, global pressures, and challenges in local markets, physical stores continue to play a crucial role in customer engagement. Stores are seen as the "brand universe" where consumers can explore and purchase luxury products and enjoy personalized experiences that create meaningful and lasting connections with brands. Retailers' concern with having the right properties in the right locations means that prime luxury retail spaces continue to be sought after."
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