City’s luxury retail shows resilience with rising tourist arrivals and new store openings despite global slowdown, according to Savills
London’s Bond Street replaced Tsim Sha Tsui as the top global luxury retail property market with rents of £19,228 per square metre per year, according to the ninth edition of the UK-based property consultancy’s Global Luxury Retail report released on Monday.
Milan’s Via Monte Napoleone ranked third, with annual rents of £16,000 per square metre.
The latest rental charges were based on data as of the fourth quarter of 2025.
Based on 2024 data, Bond Street – the top shopping district in the British capital where French luxury fashion house Hermes is set to open a new four-storey flagship store next month – typically charged £15,333 per square metre per annum, placing it third among core luxury shopping destinations worldwide. It ranked behind Tsim Sha Tsui’s £17,132 and New York’s Madison Avenue’s £15,559.
“After the strong rebound in 2024, luxury rental growth slowed sharply in 2025, highlighting a more normalised and cautious market environment,” said Marie Hickey, global retail research lead at Savills. “Europe continued to outperform other regions, but growth has been highly concentrated, with sustained demand colliding with persistent supply constraints on a limited number of prime streets, a trend that we expect will continue well into 2026.”
Source: News - South China Morning Post
