Europe’s luxury market is bouncing back, as shown by a report from Savills revealing a 77 per cent increase in store openings across the continent last year. This surge comes as international visitors return to the region, resulting in a 23 per cent share of the global luxury sector, putting Europe ahead of North America and behind China.
Despite China accounting for 41 per cent of all new luxury store openings in 2022, there was a decrease in percentage compared to 2021, likely due to the impact of strict lockdowns.
The Middle East also saw a 125 per cent increase in luxury store openings, continuing from a trend during the pandemic where brands looked to refocus on the underserved affluent market. A relatively fast recovery in luxury spending in Europe, combined with the rebasing of rents on key luxury streets, has propelled leasing activity forward.
