London’s Bond Street has officially become the most expensive retail location in Europe for 2024, overtaking Milan’s Via Monte Napoleone, according to the latest global retail report by Savills. The surge comes amid a rise in luxury store openings, pushing Bond Street’s prime rents to €15,333 per square meter. However, it still trails behind New York’s Fifth Avenue, which remains the most expensive retail street in the world, commanding rents as high as €26,000 per square meter.

The report highlights a global rebound in luxury retail, with a 12% increase in new store openings in 2024, reversing last year’s slower pace. Across 21 global cities tracked by Savills, over 75% reported either rent increases or stability in prime retail spaces. While Fifth Avenue leads in diversity, Hong Kong’s Tsim Sha Tsui remains the top luxury-specific location in Asia, with rents at €17,132 per square meter, despite downward pressure.

London and New York stood out with the strongest rental growth since the pandemic, with Bond Street rents rising by 20% and New York’s Madison and Fifth Avenues seeing average growth of 24%. Madison Avenue climbed to third place globally, moving up from fourth last year, while Milan, now in fourth, remains close behind with rents at €15,000 per square meter.

China continued to dominate global store openings, accounting for 40% in 2024—slightly down from 41% in 2023—while the broader Asia-Pacific region showed the largest regional growth. Outside of China, Japan led new store activity, driven by strong domestic and tourist spending, especially from Chinese visitors.

Savills experts noted that luxury brands are now taking a long-term strategic approach, prioritizing premium locations and high-quality retail environments to get closer to their consumers. While growth is expected to slow, competition for prime spaces is intensifying, and availability remains tight. With consumer sentiment weakening in key markets like the U.S. and China, brands are focusing on the most promising investment opportunities moving forward.