Savills: North America Led Global Luxury Retail Real Estate Openings in 2025, With New York Reclaiming Top Spot

North America emerged as the leading region for new luxury retail store openings in 2025, capturing 27% of total global activity — the first time the region has ranked first since Savills began tracking luxury openings a decade ago, according to the firm's Global Luxury Retail Outlook 2026 report released April 22.

New York also reclaimed its position as the top city globally for new luxury store openings, marking a return to the top of the rankings for the first time since 2019. New luxury store openings in the city rose 23% year-on-year in 2025, making it one of only a small number of markets worldwide to record an increase in activity.

New York's Prime Retail Corridors Drive Concentration of Activity

The resurgence in New York luxury retail activity has been supported by a shift in market conditions along the city's prime luxury corridors. Increased availability and a rebase in rents over the past three years — most notably along Fifth Avenue and Madison Avenue — have created conditions for brands to secure flagship space, according to Savills.

That dynamic has translated into a pronounced spatial concentration of leasing activity, with 56% of New York's new luxury openings located along those two established corridors.

Anthony Selwyn, Co-Head of Global Retail at Savills, said the results reflect a broader strategic recalibration among luxury brands. "This performance signals a broader recalibration in brand expansion strategies, with renewed emphasis on cities that combine scale, depth of wealth and long-term strategic relevance within global luxury networks," Selwyn said. "New York continues to benefit from its position as the world's largest high-net-worth market, reinforcing its role as a cornerstone destination for brands seeking sustained exposure to resilient, high-spending customers."

Global Luxury Retail Expansion Moderates to Lowest Level Since 2020

Overall luxury retail expansion moderated further in 2025, with total new store openings falling to their lowest level since 2020. The slowdown reflects a more cautious occupier environment, with brands prioritizing quality of presence over scale of network, Savills reported.

The decline in activity was evident across all regions. China recorded the most pronounced drop in new openings, a trend Savills attributed in part to timing effects following the delivery of major prime retail schemes in 2024, rather than a fundamental shift in long-term brand intent. As that development pipeline has been absorbed, new store activity has eased.

By contrast, North America and Europe showed relative resilience. New openings in North America declined by 13%, while Europe saw an 8% decline. Activity continues to concentrate in a smaller number of global and destination cities offering established luxury ecosystems, depth of demand, and long-term strategic relevance.

Brands Prioritizing Quality Over Scale in Expansion Strategy

Marie Hickey, Global Retail Research lead at Savills, said the data points to a more deliberate approach to store network expansion among luxury brands. "Although overall expansion volumes have softened, the data shows activity becoming more selective rather than retreating," Hickey said. "Brands are clearly concentrating investment in markets where demand fundamentals, future growth and long-term positioning align — a trend clearly reflected in New York's return to the top of the global rankings."

The findings are drawn from Savills' Global Luxury Retail Outlook 2026, which tracks luxury store openings across major global markets. The report covers activity through the full year 2025 and represents the firm's tenth year of monitoring global luxury retail trends.