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Booming luxury real estate sector anticipated

Global luxury retail sector witnessing steady rise in prime rents up to 2024, as per Savills' recent survey.

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Globally, the high-end retail sector witnessed robust expansion in prime rents, according to...
Globally, the high-end retail sector witnessed robust expansion in prime rents, according to Savills' recently released Luxury Report, predicting this trend to persist until 2024.

Booming luxury real estate sector anticipated

Luxury Rent Trends Around the Globe: A Glimpse

Just took a peek at the priciest spots for luxury retail leasing, and it looks like many cities are experiencing some major moves in the market. Here's a lowdown on some key locations and global rankings:

Global Movers and Shakers

  1. Milan, Italy: Known for its high-end fashion scene, Via Monte Napoleone in Milan made some noise by topping the global charts, raking in a whopping $2,047 per square foot in early 2025[1][5].
  2. New York, USA: Upper 5th Avenue has held onto its crown, keeping tight lock on $2,000 per square foot. But watch out, Milan might just take the lead next year[1].
  3. Hong Kong: Tsim Sha Tsui has been a hotbed of activity, despite rents dropping over a third compared to pre-pandemic levels. Came in fourth globally, with rents at $1,607 per square foot[4]. The area's facing a luxury market recalibration, which could influence the future.
  4. London, UK: New Bond Street, UK's answer to luxury, is reportedly in the top three[4], though we don't have the specific rent figures for 2024.

On the Rise

  • Asia Pacific Region (excluding China): Other than Japan, cities like Shanghai, Beijing, Tokyo, Hong Kong, and Singapore seem to be soaring with new retail activity[3][4].
  • UK: There's been a surge in high street shop investments, with Q1 2025 seeing a whopping 25% jump compared to the previous year[2], showing the UK's attractive appeal for retail investors.

Keep in mind that not all cities shared exact rent figures for 2024. However, Milan's Via Monte Napoleone, New York's Upper 5th Avenue, Hong Kong's Tsim Sha Tsui, and London's New Bond Street continue to command major attention in the luxury retail scene.

So, who's going to outrank who next year? We'll just have to wait and see!

José Galvão, Head of Retail at Savills Portugal, drops a nugget of wisdom: "The luxury retail landscape is undergoing some serious shifts, so keep your eyes peeled. Lisbon and Porto remain ripe for the picking, and a new crop of luxury retail spaces opening in Lisbon in 2027 could be the catalyst for more global brands to set up shop in Portugal."

  1. In the luxury retail sector, Portugal, specifically Lisbon and Porto, is poised for growth, as José Galvão, Head of Retail at Savills Portugal, suggests these cities are ripe for expansion, with new retail spaces opening in Lisbon in 2027, potentially attracting global brands.
  2. The upcoming variations in the luxury retail landscape are significant, according to José Galvão, as global brands may consider setting up shop in Portugal, following the advent of new retail spaces in Lisbon in 2027.
  3. The Asian Pacific Region (excluding China) and the UK have shown a surge in retail activity, with cities like Shanghai, Beijing, Tokyo, Hong Kong, and Singapore experiencing growth, while the UK reported a 25% increase in high street shop investments in Q1 2025.
  4. As for the global finance and real-estate industries, it's worth considering the potential impact of Portugal's burgeoning luxury retail market in Lisbon and Porto, as new retail spaces emerge and attract international brands.

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