London’s iconic Bond Street has reclaimed its position as Europe’s most expensive shopping street, thanks to a sharp rise in demand for prime retail space among global luxury brands.
According to new research from Savills, prime headline rents on Bond Street surged 20% in 2023, reaching £13,162 per square metre — overtaking Milan’s Via Monte Napoleone, which stood at £12,872 per square metre.
The West End destination, home to prestigious labels including Chanel and Louis Vuitton, is now ranked as the third most expensive retail street globally, trailing only Tsim Sha Tsui in Hong Kong and New York’s Fifth Avenue.
Savills attributed the jump in rents to renewed post-pandemic interest in physical retail and increased competition for flagship locations. Despite global economic uncertainty, luxury retailers are betting on stabilisation in the high-end market and looking to secure long-term positions in key global shopping destinations.
“Luxury brands are clearly taking a longer-term strategic view of the market,” said Anthony Selwyn, co-head of global retail at Savills. “They are recalibrating portfolios to get closer to their consumers.”
He added that while affluent domestic markets remained important after the pandemic reduced international travel, core luxury hubs like London are becoming increasingly competitive, with the quality and location of units more important than ever.
Recent store openings reflect this trend: Watches of Switzerland launched a four-storey Rolex flagship on Old Bond Street last month, while Moncler opened a new location on New Bond Street in December.
Selwyn noted that upward pressure on rents is likely to persist in prime luxury areas, although the pace of growth may ease as space availability tightens.
“We expect further rent increases, but at a more measured rate, as retailers secure space in the most prestigious pitches where availability is limited.”
While Milan remains a key player, Savills said deals in the Italian city are still being completed at above-average levels, underscoring continued strong demand.
Savills also revealed a notable shift within the luxury sector. Its Global Luxury Retail report, due to be published next week, will show that while fashion remains dominant, accounting for 68% of all new store openings globally, it is the jewellery and watch segment that is accelerating fastest — with a 25% year-on-year increase in new openings.
