In Spain, the main luxury streets continue to show strong momentum and growing demand. According to Cushman & Wakefield’s Luxury Retail Report, eight luxury store openings were recorded in 2025 on the country’s prime shopping streets.
In Madrid, five openings are concentrated between Serrano Street and Ortega y Gasset Street, with activity led by the jewellery and watchmaking segment. Brands such as Longines, Chopard and Suárez have strengthened their presence with new boutiques, joined by footwear brand Aquazzura. Particularly noteworthy is the opening of Longines’ first standalone store on José Ortega y Gasset Street, consolidating the area as one of the leading hubs for high-end watch brands.
In Barcelona, Passeig de Gràcia recorded three new openings, in line with the previous year, including BOSS’s new flagship store at number 84 and the boutiques of Chaumet and Carrera y Carrera at number 73, reinforcing the positioning of this axis as a key destination for international luxury.
Availability of retail units on these prime axes is non-existent, with a 0% vacancy rate in both Madrid and Barcelona, compared to 5% and 2% respectively the previous year. This lack of space continues to constrain activity and forces brands to adopt more selective strategies focused on repositioning, expansions or relocations.
This shortage of supply has helped sustain strong upward pressure on prime rents, which increased by 6% on streets such as Serrano and Passeig de Gràcia, and by 4% on Ortega y Gasset during 2025, in line with other major European markets.
The jewellery and watchmaking segment led demand, concentrating 75% of new openings and reinforcing Spain’s position as a strategic market for luxury brands.
Market dynamism is supported by positive demand trends, with luxury retail sales reaching €7.2 billion in 2025, up 2.4% year-on-year. This growth is largely underpinned by international tourism, which exceeded 92.2 million visitors to Spain in 2025, a year-on-year increase of 3.5%, consolidating the country as one of Europe’s leading luxury consumption destinations.
Rob Travers, Head of EMEA Retail at Cushman & Wakefield, states: “Spain is consolidating its position as one of Europe’s most dynamic luxury retail markets, driven by very strong international demand and virtually non-existent availability in prime locations. In this context, brands are adopting increasingly selective strategies to secure their presence on key shopping streets, which will continue to exert upward pressure on rents.”
The European context for luxury stores In Europe
The luxury sector continues to show resilience. Following the strong post-pandemic rebound, growth is moderating and sales increased by 0.5% in 2025.
A total of 96 new luxury stores opened on Europe’s main shopping streets in 2025, compared with 85 in 2024, confirming brands’ sustained interest in prime locations.
Fashion and accessories continue to lead new openings, while jewellery and watchmaking brands remain highly dynamic, alongside the beauty segment.
However, limited availability of space remains the main challenge facing the market. Most European luxury streets show vacancy rates below 5%, and several have no available units at all, continuing to drive rental growth. As a result, streets and areas close to prime axes are also gaining appeal, offering opportunities through greater availability, differentiation and lower rental levels.
Luxury brands continue to focus on key locations in cities such as London, Paris and Milan, with strategic investments aimed at strengthening long-term positioning and transforming their physical stores into true brand experiences.
