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European Luxury Retail

Explore the dynamics of the European luxury retail real estate market.

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A Luxury Market Continuing to Redefine Global Retail

The Luxury Retail Report 2026 analyzes the evolution of the luxury retail market across Europe and the key dynamics shaping the sector. Through market data, consumer trends and analysis of the most important retail destinations, the report provides a strategic overview of how brands are adapting their strategies to respond to an increasingly demanding consumer and a highly competitive real estate environment.

In a context marked by shifting consumer behavior, the resurgence of international tourism and the growing importance of brand experiences, luxury retail continues to position itself as one of the most resilient segments within the commercial real estate market. The report highlights how Europe’s leading luxury shopping streets remain highly attractive to global brands, even in complex economic environments.

Spain: a key market for luxury retail in Europe

Spain continues to strengthen its position as one of the most attractive destinations for luxury retail in Europe. Cities such as Madrid and Barcelona concentrate some of the country’s most prominent retail locations, where the presence of international brands continues to grow, driven by high-spending international tourism and sustained demand from local consumers.

The dynamism of international tourism, particularly from the United States, the Middle East and Asia, is significantly contributing to the sector’s performance. This environment has increased brands’ interest in expanding their presence in Spain’s prime shopping streets, while also developing new retail concepts that combine shopping, hospitality and exclusive services.

Key Market Trends and Outlook

Resilience of Prime Locations

Driven by ongoing retailer demand but in an environment of constrained availability, rental growth on European luxury retail streets has continued to grow, with an increase of 3.6% in 2024. Prime retail rental levels on luxury high streets are now 3% higher than in 2018.

Evolving Consumer Behaviour

While aspirational shoppers face financial pressures, high-wealth consumers continue to drive luxury spending, with an increasing demand for exclusivity and personalised experiences.

Experiential Retail & Brand Engagement

Luxury brands are expanding beyond traditional retail by investing in hospitality, including branded residences, cafés, spas, and private member experiences to deepen customer engagement.

Luxury and Tourism

The return of international tourists—particularly high-spending travellers from the Middle East and the United States—has boosted luxury retail performance across Europe.

ContaCT OUR TEAM

Cushman & Wakefield's dedicated Luxury Retail Team remains at the forefront of these developments, providing invaluable insights and expertise to help navigate the complex terrain of the European luxury retail real estate market.

Contacts

Robert Travers
Robert Travers

International Partner, Head of EMEA Retail
Barcelona, Spain


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Marta Esclapes
Marta Esclapés

Head of Research Iberia
Barcelona, Spain


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rupert lea
Rupert Lea

International Partner, Head of Capital Markets Retail
Madrid, Spain


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