- In 2024, eight luxury store openings are recorded on the main shopping streets of Spain, and in Europe, they total 83.
- Both in Europe and Spain, the availability of spaces remains a challenge. In Madrid and Barcelona, the vacancy rate in the most exclusive locations is practically zero.
- The scarcity of spaces has contributed to maintaining prime rents at high values, standing at €260/m² per month in Madrid and €270/m² per month in Barcelona.
In Spain, the main luxury streets continue to show high dynamism and growing demand. According to data from Cushman & Wakefield, eight luxury store openings are recorded on the main shopping streets of the country in 2024. In Madrid, six stores are concentrated between Serrano and Ortega y Gasset streets, while in Barcelona, Paseo de Gracia hosts two of these establishments.
The level of availability of commercial premises in these prime areas is low, with a practically zero vacancy rate. This scarcity of spaces has contributed to maintaining prime rents at high values, standing at €260/m² per month in Madrid and €270/m² per month in Barcelona.
Forecasts for 2025 point to a growth of between 5% and 10% in maximum rents, approaching the levels of 2019, when they reached €285/m² per month. The combination of practically zero availability and high demand from brands interested in entering or expanding in key locations such as Serrano and Paseo de Gracia reinforces this upward trend.
Rob Travers, Head of EMEA Retail at Cushman & Wakefield, states that, "As retailers adapt to an environment with more demanding consumers and global and local challenges, physical stores continue to play a key role in customer interaction. They are spaces where consumers can discover and purchase luxury products and enjoy in-person experiences that strengthen their connection with the brand. The need for retailers to have the best spaces in strategic locations maintains the high demand in these commercial hubs."
The European context of luxury stores
In Europe, the luxury commercial real estate sector continues in the same vein as Spain, showing resilience with new store openings in 2024, despite challenges in the luxury retail market. This is highlighted in the European Luxury Retail 2025 report by Cushman & Wakefield.
In total, 83 new luxury stores opened on the 20 main luxury streets of Europe, in 16 cities and 12 countries, in 2024, indicating that the sector continues to show significant activity. The fashion and accessories segment led with 41 openings, while jewelry and watch brands increased their presence with 26 new stores in 2024, compared to 21 the previous year, consolidating the appeal of "hard" luxury among consumers.
Brands from the LVMH External Link, Richemont External Link, and Kering External Link groups represented more than a third of the new openings. Although this proportion remains stable compared to 2023, the distribution among these conglomerates has changed, with LVMH leading with 15 openings in 2024.
However, there is a scarcity of available spaces; in 17 of the 20 main luxury streets, the vacancy rate remains below 5%, and six of them have no available premises. This deficit has driven a 3.6% increase in rents in 2024, surpassing the 3% of 2023. On average, rents on these streets are now 3% higher than in 2018. A third of Europe's luxury streets reached record rent levels, with Via Montenapoleone in Milan consolidating, for the first time in the Main Streets Across the World ranking by Cushman & Wakefield, as the most expensive shopping street in the world. Cushman & Wakefield forecasts that rents in these locations will continue to increase between 1% and 3% annually from 2025 to 2028.
Luxury brands have continued to invest in key locations in Europe, with a special focus on London, Paris, and Milan. These investments are strategic and selective, aiming to maintain their long-term positioning and make significant transformations in their physical spaces.
Cushman & Wakefield, with a 25% market share in this type of operation in Europe, positions itself as a leader in the sector.
Sally Bruer, Head of EMEA Retail Research at Cushman & Wakefield, notes that, "More and more brands are looking to expand the size of their stores to showcase a wider range of products and offer exclusive experiences to their customers. Faced with the lack of available space, retailers are adopting innovative strategies, such as expanding to neighboring premises or relocating to larger spaces, all with the aim of positioning their stores as brand references."
"We are seeing a solid number of openings scheduled for 2025 and the coming years, and we expect this trend to continue as economic conditions improve and brands continue to bet on physical stores."
