In an exceptional year for the luxury real estate sector, high-end stores have significantly boosted the retail landscape. The renewed vigor in the European luxury market led to a notable 77% increase in store openings during 2022. This growth is a result of the warm reception international visitors have received across the continent, fostering a strong recovery in the luxury sector’s spending.
The latest report by Savills, titled “Global Luxury,” reveals that due to outstanding outcomes achieved in Europe, the global share of new openings increased to 23% in 2022. This figure positions Europe as the second-ranking global luxury commerce market, trailing China and preceding North America. Among the notable inaugurations across European territory are the opening of Del Core on London’s New Bond Street, Celine’s sixth store in Paris, and the unveiling of a new Ralph Lauren branch in Milan. In Madrid, the Galería Canalejas welcomed openings by brands like Jimmy Choo, Louis Vuitton, Aquazzura, Valentino, Saint Laurent, and Etro. Meanwhile, in Barcelona, names like Rolex and Zimmerman were added to the list.
The rapid recovery of luxury spending in the region, facilitated by the return of international tourists, has spurred a rekindled interest from luxury brands to expand across Europe. Furthermore, the review of rents on the most iconic streets, coupled with improvements in availability in some cases, has further boosted commercial activity.
The report crafted by the international real estate consultancy highlights that globally, 2022 witnessed an 11% increase in the opening of new luxury stores, consistently surpassing the retail sector. Despite a decrease in the total number of openings compared to 2021 due to scheduled closures in certain regions, China remains at the forefront with a 41% share of new inaugurations.
Savills also notes a 125% surge in luxury openings in the Middle East compared to 2021, continuing a trend that emerged during the pandemic, wherein luxury brands have turned their attention to high purchasing power markets, with Dubai and Doha as primary focal points.
The consultancy emphasizes that luxury brands are increasingly open to exploring diverse locations, a trend expected to continue. While iconic destinations like Milan, London, and New York will remain highly attractive, challenges in availability may moderate activity in these markets over the next 12-18 months. As a result, a continuous growth in the opening of new stores in emerging markets is anticipated.
Discover the new stores of Brunello Cucinelli, Loro Piana, and The Row on Paseo de Gracia, and take the opportunity to visit emblematic establishments like Rabat Jewelry. Explore top-tier brands like Gucci and Dolce & Gabbana, or check out Santa Eulàlia, a clothing store known for its exquisite selection. All of this is just a stone’s throw away from your home in Sitges!
Article by Dust and Sand Luxury Homes.
