Of the 21 destinations monitored by Savills, over 75% reported year-on-year increases or a flat year-on-year increase in prime rents.

New York’s Fifth Avenue has cemented its position as the most valuable location globally, with prime rents reaching €26,000/m² in the last quarter of 2024. Meanwhile, London’s Bond Street has seen an impressive 20% increase, matching the 24% average growth on Madison Avenue and Fifth Avenue itself. Still, rents in the latter remain slightly below pre-pandemic 2019 levels.

In terms of ranking, Madison Avenue and Bond Street rose to second and third places respectively, after occupying fifth and fourth places in 2023. Thus, Bond Street reaches the European leadership in prime rents with €15,333/m², overtaking Via Monte Napoleone, in Milan (€15,000/m²), although the difference is tenuous.

Portugal: Luxury demand exceeds supply

In Portugal, demand for luxury retail space continues to vastly outstrip available supply. In both Lisbon and Porto, the shortage of qualified locations — particularly on Avenida da Liberdade and Avenida dos Aliados — has been an obstacle to the entry of new prestigious brands.

Avenida da Liberdade, however, maintains its status as the epicenter of national luxury. Although available space is limited, existing brands are actively interested in expansion or relocation opportunities. The new offering of luxury retail spaces, scheduled to open in early 2027, promises to significantly reinforce Lisbon’s attractiveness in this exclusive market.

“Lisbon and Porto remain highly attractive cities for luxury brands. The growth in the luxury hotel sector and the consequent increase in qualified traffic from Europe, Asia and the United States creates an ideal ecosystem for the development of this market. We are confident that the new offer planned for Avenida da Liberdade will finally allow more luxury brands to enter Portugal,” says José Galvão, Head of Retail at Savills Portugal.

Global Market: Asia leading the pace of growth

In 2024, China once again established itself as the biggest power in luxury retail, accounting for 40% of all new openings worldwide — up 10% from the previous year, although slightly below the 41% share recorded in 2023.

Alongside China, the Asia-Pacific region (excluding China) stood out with the most significant growth in store numbers, accounting for 24% of all new openings, outperforming both North America and Europe, with a notable growth of 52%. Within the region, Japan maintained its leadership as the largest market for new openings.

Anthony Selwyn, Co-Head of Global Retail at Savills, comments: “Luxury brands are demonstrating a long-term strategic vision, adjusting their portfolios to increasingly align with their target audiences. Following the pandemic, with the decline in international travel, there has been a clear focus on large, underutilised domestic markets. This trend continues, but as key markets become more competitive, pressure on prime rents will continue – albeit at a more moderate pace – amid the growing shortage of available space.”