• London’s Bond Street now has the highest indicative prime rent in Europe at €15,333 per sq m

• Fifth Avenue becomes most ‘expensive’ retail destination in the world at €26,000 per sq m

• Following the slowing in new store openings in 2023, last year bucked the trend with a 12% increase in new store openings globally

New York’s Fifth Avenue strengthened its position to become the most ‘expensive’ retail destination in the world – with prime headline rents at €26,000 per sq m, per annum as of Q4 2024. However, focusing solely on core luxury destinations, Hong Kong’s Tsim Sha Tsui retained its top position (€17,132 per sq m), despite downward pressure on prime headline rents.

New York’s Madison Avenue and London’s Bond Street moved up the rankings to come in second and third, having ranked fifth and fourth respectively last year. As a result, London’s Bond Street now has the highest indicative prime rent in Europe at €15,333 per sq m, overtaking Milan’s Via Monte Napoleone (€15,000 per sq m), which held the top spot in 2023, although there is little between them.

Portugal: Luxury Market Sees Demand Surpassing Supply

In Portugal, demand for luxury retail space continues to far exceed the available supply. In both Lisbon and Porto, a shortage of prime locations, particularly on Avenida da Liberdade and Avenida dos Aliados, has posed a significant barrier to the entry of new high-end brands.

Avenida da Liberdade nonetheless retains its status as the epicentre of luxury in Portugal. Although retail space is scarce, the brands already established there are actively seeking opportunities for expansion or relocation. A new wave of luxury retail units, scheduled to open in early 2027, is expected to significantly enhance Lisbon’s appeal within this exclusive market.

“Lisbon and Porto remain highly attractive cities for luxury brands. The growth of the luxury hospitality sector and the resulting increase in high-end footfall from Europe, Asia and the United States create an ideal ecosystem for the development of this market. We are confident that the upcoming retail offer on Avenida da Liberdade will finally allow more luxury brands to establish a presence in Portugal,” says José Galvão, Head of Retail at Savills Portugal.

Global Market: Asia Leading the Growth Pace

In 2024, China remained the powerhouse, accounting for 40% of all new openings globally – with a 10% year-on-year increase, although this is down from a 41% global share in 2023.

Beyond China, the biggest growth region in store count terms was the wider Asia Pacific region (excluding China). Accounting for 24% of all new openings, accelerating past North America and Europe, with a 52% increase in new openings. Excluding China, Japan remained the biggest market for new openings in the region, with Savills research pointing to the strength of domestic and visitor spend, particularly that coming from China.

Anthony Selwyn, Co-Head of Global Retail at Savills, comments: “Luxury brands are demonstrating a long-term strategic vision, increasingly reshaping their portfolios to be closer to their target audiences. Following the pandemic and the decline in international travel, there was a clear focus on underexploited major domestic markets. This trend continues, but as key markets become more competitive, pressure on prime rents is expected to persist, albeit at a more moderate pace, due to the growing scarcity of available space.”

Read the full report here