Luxury Retail Germany 2026: Why Munich and Düsseldorf Attract Europe’s Luxury Brands

*96 new luxury stores in Europe – but only 3 in Germany. Weakness or strategic opportunity? We analyse what the market means for owners, investors and brands.*

European luxury retail is in a remarkable phase: while overall luxury sales grew only 0.5 per cent according to the European Luxury Retail Report 2026 by Cushman & Wakefield, the number of new openings is rising. 96 new luxury stores opened in 2025 on Europe’s 20 most important shopping streets across 16 cities and 12 countries – a clear increase from 85 the previous year. Brands are investing more than ever in physical presence, larger flagship stores and experience-oriented retail concepts.

Yet a look at Germany reveals a discrepancy: only three luxury store openings in Munich and Düsseldorf – down from eight the previous year. Is that a sign of weakness? On the contrary. The market data show: the German luxury market with a turnover volume of EUR 15.2 billion is not a laggard but a market in transformation – with concrete opportunities for owners, investors and international brands.

Europe: luxury brands invest in physical presence

Despite a challenging consumer environment, luxury brands are investing heavily in their bricks-and-mortar retail presence. According to Cushman & Wakefield, European luxury sales grew only 0.5 per cent in 2025, yet the number of store openings rose from 85 (2024) to 96 (2025). The reason: in a market where the discerning consumer increasingly buys selectively, the physical store becomes a strategic differentiation tool. Flagship stores are no longer merely sales spaces – they are brand worlds integrating cafés, restaurants, VIP lounges and cultural experience spaces.

The three major luxury conglomerates LVMH, Richemont and Kering accounted for around 30 per cent of all new openings (29 stores). LVMH led with 17 new stores, followed by Kering with 7. But beyond the big three, a remarkable breadth emerges: 57 different brands opened 66 stores in 2025 – from Bottega Veneta and Brunello Cucinelli to rising brands like the Swedish label Toteme and the French accessories house Polène.

Particularly dynamic: Fashion & Accessories with 48 openings and Jewellery & Watches with 28 new stores. The hard luxury segment – jewellery and watches – shows itself as particularly resilient: while clothing and accessories recorded sales declines, the watch and jewellery segment grew 0.5 per cent and opened 77 stores over three years on Europe’s 20 most important luxury streets.

The biggest problem: barely any space available

Availability of premium retail space on Europe’s luxury streets is at a historic low, according to Cushman & Wakefield. Of the 20 streets analysed, 8 have a vacancy rate of 0 per cent – including Via Montenapoleone in Milan (at 0 per cent for three years), Via Condotti in Rome, Passeig de Gràcia in Barcelona, Pařížská in Prague and Biblioteksgatan in Stockholm. Another 6 streets stand below 5 per cent. None of the 20 luxury streets has recorded a vacancy rate above 10 per cent since 2023.

This supply scarcity directly affects rents: prime rents on Europe’s luxury streets rose 3.5 per cent on average in 2025 versus the previous year (Source: Cushman & Wakefield Research) and now sit 7 per cent above end-2018 levels. Since the March 2021 low, luxury rents have risen 12.1 per cent. By comparison: non-luxury high streets remain 7 per cent below their 2018 level, with a recovery of only 9.2 per cent since their March 2022 low. Luxury retail has established itself as an asset class decoupled from general retail dynamics.

> “Since March 2021, rents on Europe’s luxury streets have risen 12.1 per cent – versus only 9.2 per cent on non-luxury high streets. Half of all luxury streets reached new record rents in 2025, including Paris, Milan, Rome, Prague, Geneva, Madrid, Lisbon and London.” — Cushman & Wakefield, European Luxury Retail Report 2026

Germany: a EUR 15.2 billion luxury market – and untapped potential

With EUR 15.2 billion of luxury retail turnover (Source: GlobalData, 2026) and growth of 1.5 per cent year-on-year, Germany is Europe’s third-largest luxury market – behind Italy (EUR 26.4 billion, -0.6 per cent) and France (EUR 25.6 billion, +0.7 per cent). Germany thus grows faster than the two larger markets. International tourist numbers declined slightly in 2025 according to Tourism Economics (-1.9 per cent to 33.5 million arrivals), but the fundamental attractiveness of German luxury locations remains intact.

The two key streets – Maximilianstraße in Munich and Königsallee in Düsseldorf – together saw only three store openings in 2025, down from eight the previous year. Yet this number is not a weakness but reflects extreme supply scarcity: Maximilianstraße has a vacancy rate of only 1.8 per cent, Königsallee rose minimally to 3.1 per cent – equivalent to just two vacant units.

Munich: Bulgari returns – and major developments ahead

The most important opening in 2025 on Maximilianstraße: Bulgari reopened its three-storey boutique at Maximilianstraße 17 after extensive renovation. The store combines the brand’s Roman heritage with Munich elegance and underlines Maximilianstraße’s position as one of Germany’s top luxury addresses.

Strategically significant: Commerz Real has acquired Maximilianstraße 12–14 and plans modernisation works on the retail and office floors. This development will create new premium space over the medium term – a rare opportunity in a market that has suffered from acute space shortage for years.

Düsseldorf: Chanel makes a statement

On Königsallee, Chanel set the clearest signal in 2025: the luxury brand relocated its boutique from Königsallee 38–40 to a new multi-level boutique at Königsallee 20. At 630 square metres, Chanel has almost doubled its retail floor in Düsseldorf. Particularly notable: it is the first Chanel store in Germany with a dedicated Haute Joaillerie department for the fine jewellery collection.

In parallel, Dior opened a temporary store at Königsallee 19 while the flagship at Königsallee 30–32 undergoes restoration. This strategy – temporary presence during renovation of the main location – shows how important uninterrupted visibility on Königsallee is for luxury brands.

The European benchmark: all 12 luxury markets compared

The Cushman & Wakefield report analyses all major European luxury markets. Germany is one of only four markets with positive turnover growth – alongside France (+0.7 per cent), Spain (+2.4 per cent) and Switzerland (+2.8 per cent). Markets such as Italy, the Netherlands and Denmark record declines. Germany even grows faster than France at +1.5 per cent.

The low number of store openings in Germany (3) contrasts with Paris (22) and Milan/Rome (12). This is not due to lack of brand interest but to extremely limited space supply. Vacancy rates of 1.8–3.1 per cent are among the lowest in Europe.

Prime rents in Munich and Düsseldorf remain 8–14 per cent below 2018 levels. By contrast, most other luxury streets have long since surpassed their pre-pandemic rents – Lisbon’s Avenida da Liberdade sits 30 per cent above 2020 levels, London and Milan report record rents, and even Prague’s Pařížská has exceeded 2018 levels for the first time. This makes the German market one of the last comparatively attractive entry points for international luxury brands in Europe.

Market by market: what is moving on Europe’s luxury streets

Paris has reclaimed its position as Europe’s leading luxury destination. After an Olympic-related decline to only 7 openings in 2024, the city recorded 22 new stores in 2025 – across Rue Saint-Honoré, Avenue des Champs-Élysées, Avenue Montaigne and Rue du Faubourg Saint-Honoré. Notably: six of nine openings on Rue Saint-Honoré were luxury perfume houses – including Acqua di Parma, Creed and Solférino. Paris is developing into a global hotspot for luxury fragrance retail. Rents on the Champs-Élysées rose 10 per cent year-on-year.

Milan’s Via Montenapoleone had 0 per cent vacancy for three years – it was simply impossible to secure space. In 2025, the market opened up for the first time: 11 new stores, including Fendi, Louis Vuitton, Valentino, Saint Laurent, Celine and Tiffany (largest European flagship: 1,200 sqm in the historic Palazzo Taverna). In Rome on Via Condotti, opportunities remain extremely limited with only one opening. Rents on Via Condotti rose 7 per cent year-on-year.

London recorded 15 store openings on Bond Street and Sloane Street. The most notable development: Bond Street has replaced Via Montenapoleone as the world’s most expensive retail street. Vacancy rose slightly to 6–7 per cent, driven by ongoing renovation projects. Dolce & Gabbana opened a new flagship on Sloane Street, and Rolex opened its huge new flagship on Bond Street.

Madrid and Barcelona together saw 8 openings, dominated by jewellery and watch brands (75 per cent of new openings). Both cities reached a 0 per cent vacancy rate in 2025 – an exceptional value. Rents rose 4–6 per cent year-on-year. BOSS opened a flagship of over 1,000 sqm with a vertical garden in Barcelona.

Amsterdam’s PC Hooftstraat remains one of Europe’s most dynamic luxury streets with 10 new openings – including Ganni, Alo Yoga and Goldbergh. Vacancy rose slightly to 5.4 per cent, rents remained stable.

Prague’s Pařížská recorded 6 new openings – all in the new retail space of the Fairmont Golden Prague hotel. Damiani, Pasquale Bruni and Max Mara have moved in. Vacancy stands at 0 per cent, rents rose 4 per cent and have exceeded 2018 levels for the first time. Cartier and Patek Philippe are preparing openings for 2026.

Zurich and Geneva together recorded 7 openings. On Bahnhofstrasse, Van Cleef & Arpels, Longines and Celine moved into more prominent positions. In Geneva, Pomellato opened its first Swiss boutique – the world’s first LEED Platinum-certified luxury store.

Lisbon’s Avenida da Liberdade (5 openings, 0 per cent vacancy, +4 per cent rent growth) has established itself as a rising luxury destination – rents sit 30 per cent above 2020 levels. Stockholm recorded 3 openings at 0 per cent vacancy, including Dior’s first standalone store in Sweden. Copenhagen won Tiffany, Polène and Louis Vuitton for new flagships.

The development pipeline: new space for Königsallee

What distinguishes the German market from many other European locations: a substantial development pipeline that will create new premium space in the coming years.

On Königsallee, two large-scale projects are under construction. Le Coeur, the mixed-use development by Hines in partnership with a German pension fund at Königsallee 35–37, covers around 47,000 square metres of total space. First tenants such as Diptyque, Hestermann and Label Kitchen are already secured. In parallel, Hamburg-based Momeni Group is delivering the Trinkaus Karree at Königsallee 21–23: 40,000 square metres of mixed-use with 2,000 sqm of retail and 700 sqm of gastronomy space.

These projects have double significance for the market: they create urgently needed space supply in an extremely tight market, and they redefine Königsallee as a mixed-use destination – a trend visible Europe-wide that brings gastronomy, hospitality and retail experience into an integrated environment.

Outlook 2026–2030: moderate growth, rising rents

European luxury retail is forecast to grow at 3 per cent on average per year over the coming years (period 2026–2030), according to GlobalData. Germany sits slightly above the European average – driven by the recovery of international tourism (according to Tourism Economics, European arrivals will exceed the pre-pandemic 2019 level by 40 per cent by 2030) and the growing purchasing power of domestic luxury consumers. Particularly growth-strong within Europe: Spain, Portugal and the Czech Republic.

For rents on European luxury streets, Cushman & Wakefield forecasts annual growth of 0.5–4 per cent between 2026 and 2029. Given that Munich and Düsseldorf remain well below their historical rent peaks (8–14 per cent below 2018), disproportionate catch-up potential exists here – particularly if the new development projects attract international brands and further raise location attractiveness.

Particularly relevant segments for the coming years according to Cushman & Wakefield: Jewellery & Watches (persistently resilient, 77 store openings in three years, Richemont and LVMH with strong pipeline for 2026) and Cosmetics & Fragrances (growing above average, with rising demand for standalone boutiques – six luxury perfume houses alone opened on Rue Saint-Honoré in Paris in 2025).

What this means for the German market

The German luxury retail market is in a unique position: demand from international luxury brands for space is high, supply is extremely tight, and rents have not yet reached the level of other European luxury locations. The combination of new floor development on Königsallee and continuing minimal vacancy on Maximilianstraße creates a window for strategic decisions.

For owners of luxury retail floors this means: the negotiating position is stronger than rarely before – international brands are actively seeking space in Germany and are ready to invest in high-quality fit-outs. For brands wanting to enter the German market, now is the right time: rents remain below the European peak, and pipeline projects will create new supply for the first time in years.

Frequently asked questions

How large is the luxury retail market in Germany?

The German luxury retail market generated EUR 15.2 billion in 2025 according to the European Luxury Retail Report 2026 by Cushman & Wakefield, growing 1.5 per cent year-on-year. Germany is thus Europe’s third-largest luxury retail market – after Italy (EUR 26.4 billion) and France (EUR 25.6 billion). Based on GlobalData data.

Which luxury brands opened new stores in Germany in 2025?

Three luxury stores opened in Germany in 2025: Bulgari reopened its three-storey boutique at Maximilianstraße 17 in Munich after extensive renovation. Chanel opened a new 630 sqm boutique at Königsallee 20 in Düsseldorf – the first Chanel store in Germany with a dedicated Haute Joaillerie department. Dior opened a temporary store at Königsallee 19 during restoration of its flagship. (Source: Cushman & Wakefield, 2026)

Is it worth investing in luxury retail properties in Germany?

Market data suggest an attractive investment situation: prime rents in Munich and Düsseldorf remain 8–14 per cent below 2018 levels, while other European luxury streets already record all-time highs. At the same time, large projects such as Le Coeur (Hines, 47,000 sqm) and Trinkaus Karree (Momeni Group, 40,000 sqm) on Königsallee create new premium supply for the first time in years. Cushman & Wakefield forecasts 0.5–4 per cent annual rent growth for European luxury streets in 2026–2029. Note: this article serves market information, not investment advice.

Which European luxury street is the most expensive in the world?

According to the European Luxury Retail Report 2026 by Cushman & Wakefield, London’s New Bond Street replaced Milan’s Via Montenapoleone as the world’s most expensive retail street in 2025. Via Montenapoleone had held this position for several years.

*Sources: Cushman & Wakefield: “European Luxury Retail Report 2026”, EMEA Retail Research Team, 2026. GlobalData: Luxury Retail Sales Data Europe, 2025. Tourism Economics: International Tourist Arrivals & Spending Forecasts, 2025–2030. Analysis & editorial commentary: Unique Retail, unique-retail.com. This article serves market information and does not constitute investment advice.*