The global luxury market is regaining momentum. According to Savills’ Global Luxury Retail Report 2025, the recovery solidified in 2024 with a significant increase in new store openings and a stabilization—or even growth—of rents in prime locations. Despite economic challenges, the sector continues to thrive, driven by key markets and a wealthy clientele resilient to turbulence.
New Openings Rebound After a Slowdown
Following a slowdown in new openings during 2023, the trend reversed in 2024 with a 12% global increase in luxury store openings. China, although slightly declining, remains a cornerstone of the market, accounting for 40% of all new openings worldwide. This figure highlights the country’s central role, even as its share slightly decreases (41% in 2023).
The Asia-Pacific region, excluding China, also saw notable growth, representing 24% of global new openings. This region outpaced North America and Europe in terms of expansion, with Japan leading the way as the most dynamic market in the area.
Major Cities Regain Their Central Role
With the resumption of international travel, global Alpha cities—those essential hubs for luxury retail—have once again become focal points for brands. Shanghai, Beijing, and Tokyo topped the rankings for new openings in 2024, reaffirming their status as strategic centers for luxury. Other cities such as Hong Kong (9th place) and Singapore (5th place) have also strengthened their appeal.
This renewed focus on major cities is also driven by the concentration of wealthy individuals in these markets. These consumers, who are less impacted by economic slowdowns, have enabled brands like Chanel and Hermès to maintain strong performances, further enhancing the attractiveness of Alpha cities.
Rents Rise in Key Locations
Pressure remains high on prime retail spaces. Tsim Sha Tsui in Hong Kong retains its position as the most expensive luxury destination, with rents reaching €17,132/m²/year. Madison Avenue in New York and Bond Street in London climbed to second and third places, respectively, after ranking fifth and fourth in 2023. With indicative rents of €15,333/m²/year, Bond Street has now overtaken Via Monte Napoleone in Milan (€15,000/m²/year) as the priciest location in Europe.
In Asia, Ginza in Tokyo ranks fifth with rents of €13,406/m²/year, while Singapore is lower on the list at 19th place, with €1,725/m²/year.
A Long-Term Strategy for Luxury
According to Anthony Selwyn, co-head of global retail at Savills, luxury brands are realigning their strategies to meet customer expectations:
“Brands are increasingly focusing on affluent but relatively underserved domestic markets while strengthening their presence in major international cities. The quality of locations and buildings is becoming a strategic priority, which is driving rent increases in key areas.”
2025 Outlook: Balancing Stabilization and Caution
For Marie Hickey, Savills’ head of commercial research, the luxury market is entering a phase of consolidation:
“The stabilization that began at the end of 2024 is expected to continue this year. However, weak consumer sentiment in China and the United States may weigh on growth, steering investments toward the best short-term opportunities.”
Despite economic complexities, the global luxury sector continues to demonstrate its adaptability. Brands are bolstering their presence in strategic locations while exploring new markets. With increasingly demanding consumers, innovation and adaptability will remain the keys to sustaining this momentum.
Tribes & Trends, May 2025