European Luxury Retail

At the Forefront of Retail Real Estate Evolution

Europe remains a global leader in luxury retail, offering an unparalleled shopping experience that continues to attract discerning consumers. From the fashion capitals of Milan and Paris to the historic streets of London, Rome, and beyond, the region’s luxury retail market is defined by a strong heritage and an evolving approach that maintains its global appeal.

In this in-depth report, we examine the key trends shaping the European luxury retail real estate market, including the resilience of physical stores, the continued expansion of leading luxury brands, and the growing emphasis on experiential retail.

The Strategic Role of Physical Stores in Luxury Retail

Physical stores remain at the core of luxury retail strategies, serving as immersive spaces that communicate brand exclusivity, craftsmanship, and heritage. Despite a slowing pace of new store openings, demand for prime locations remains strong, with key luxury streets such as Via Montenapoleone in Milan, Avenue des Champs-Élysées in Paris, Bond Street in London, and Passeig de Gràcia in Barcelona continuing to thrive. Luxury retailers are increasingly focused on securing and expanding their presence in these prime retail destinations. However, space constraints in key locations have led to creative strategies, including expanding into neighbouring units, converting upper and lower floors, and acquiring real estate assets to ensure long-term control.