Singapore’s Orchard Road was ranked 24th among the most expensive retail destinations globally, with prime rents at EUR2,627 per sq m per annum (Photo: Shutterstock)
Singapore was among a handful of luxury retail markets that continued to show growth in 2025, despite a global slowdown in retail activity due to geopolitical and macroeconomic uncertainties.
In its Global Luxury Retail Outlook 2026 report, Savills notes that new luxury store openings moderated globally in 2025, reaching their lowest level since 2020.
Rental growth for prime luxury retail space also eased in 2025, with average headline rents inching up 0.9% y-o-y, based on 27 key markets tracked by Savills. The figure is a marked contrast from the 6.6% growth recorded the year before.
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“After a strong rebound in 2024, luxury rental growth slowed sharply in 2025, highlighting a more normalised and cautious market environment,” remarks Marie Hickey, global retail research lead at Savills.
Against this backdrop, Singapore outperformed the global average, recording 2% y-o-y growth in prime luxury retail rents. At the same time, Singapore ranked among the top 10 cities globally for new luxury store openings, alongside other Asia Pacific (Apac) markets such as Beijing, Bangkok, Tokyo, Shanghai and Hong Kong.
Singapore continues to appeal to luxury brands, backed by its reputation as a “financial sanctuary” for ultra-high-net-worth individuals, says Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore.
“The city-state remains highly sought-after by luxury brands, while limited availability of prime luxury retail space in key shopping corridors continues to drive competition for space and support rental growth,” she adds.
As global luxury retail momentum has slowed, brands are deploying capital more selectively. According to Savills, brands are increasingly focusing on a smaller number of strategically important locations that offer scale, depth of wealth and long-term relevance within global luxury networks.
“What we are seeing is a clear recalibration rather than a slowdown in intent,” says Anthony Selwyn, co-head of global retail at Savills. “With prime availability increasingly constrained, vacancy and quality of opportunity are now the key drivers of activity.”
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Within this landscape, key cities in established luxury capitals in North America and Europe have seen renewed interest. New York saw the highest number of new luxury store openings in 2025, jumping from fourth place last year and topping the list for the first time since 2019.
New York was ranked as the top city for new luxury store openings in 2025, logging a 23% y-o-y increase in activity (Photo: Shutterstock)
The city saw a 23% y-o-y growth in new store openings, bolstered by activity along Fifth Avenue and Madison Avenue. Two other US cities — Los Angeles and Miami — also made the top 10, tying for sixth place.
Regionally, despite recording a 13% y-o-y decline in new openings, North America accounted for 27% of global luxury store openings in 2025, making it the largest contributor. This surpassed China, which drove the bulk of new openings in 2024.
Europe was the second-largest contributor in 2025, accounting for 26% of new luxury store openings. Meanwhile, Apac (excluding China) accounted for 20% of openings, followed by China at 19%.
Chart: Savills Research
London’s Bond Street was the most expensive luxury retail destination globally, with prime headline rents standing at EUR19,228 ($28,749) per sq m per annum as of 4Q2025. It displaced Hong Kong’s Tsim Sha Tsui, which topped the rankings the year before and now ranks second at EUR16,160 per sq m per annum.
Among other European luxury streets, Milan’s Via Monte Napoleone and Paris’ Champs Elysées moved up the rankings to third and fifth place, respectively. This was buoyed by supply constraints and a “strategic re-focus” among luxury brands, which have intensified competition for prime destinations across Europe, says Savills. Overall, Europe logged an average prime rental growth of 1.2% in 2025.
In contrast, prime headline rents in the Apac region declined slightly by an average of 0.2% y-o-y in 2025. Savills largely attributes this to declining rents along Shanghai’s Nanjing Road West, where rents stood at EUR2,971 per sq m per annum as of 4Q2025, compared to EUR3,006 in the same period the year before.
Singapore’s Orchard Road ranked 24th among the most expensive retail destinations globally, with prime rents at EUR2,627 per sq m per annum as of 4Q2025. Elsewhere in the region, Tokyo’s Ginza ranked eighth globally and second in Asia, with rents of EUR8,607 per sq m per annum.
Chart: Savills Research
Savills expects the luxury retail market to remain polarised this year, with capital likely to stay concentrated in global luxury capitals. Amid stabilising rents, the firm predicts selected European markets will sustain rental growth, supported by limited supply and sustained occupier demand.
At the same time, geopolitical disruptions and other ongoing headwinds also pose the risk of redirecting travel spending and international footfall. To that extent, locations where demand is driven by both domestic wealth and tourism inflows are likely to remain bright spots in the market, the firm notes.
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