Savills’ Global Luxury Retail Outlook 2026 shows that average prime headline rents across the 27 core luxury destinations tracked globally rose by 0.9% in 2025, a marked deceleration from the 6.6% uplift recorded in 2024. Singapore was among the markets that outperformed the global average, recording prime luxury retail rental growth of 2% in 2025.

This slowdown highlights how rental momentum has narrowed to a smaller group of high-conviction markets, with the majority of locations seeing rents stabilise as global macro-economic headwinds and changing travel patterns weigh on occupier decision-making. However, around 50% of European prime luxury streets are looking at potential rental growth over the coming year, underpinned by persistent supply constraints and sustained occupier demand for core locations.

The city-state continues to feature among the top global luxury retail destinations, ranking among the top 10 cities globally for new luxury store openings, reflecting its role as a key gateway for regional wealth and international tourism. Singapore remains one of only a handful of Asia Pacific cities to rank among the world’s top luxury retail destinations for new store openings, alongside Tokyo, Bangkok and Shanghai.

In Singapore, limited availability in prime retail corridors such as Orchard Road and Marina Bay is concentrating demand into a smaller number of locations, supporting continued competition for space and reinforcing the importance of securing high-quality flagship sites.

Singapore is also among the preferred luxury shopping destinations for high-net-worth individuals from key markets such as the United States and Germany, reinforcing its global appeal as both a retail and travel destination.

Sulian Tan-Wijaya, Executive Director, Retail & Lifestyle, Savills Singapore, says: "Singapore is regarded by many as Asia’s most stable and sophisticated financial sanctuary for ultra-high-net-worth (UHNW) individuals. The city-state remains highly sought-after by luxury brands, although limited availability of prime luxury retail space in key shopping corridors continues to drive competition for space and support rental growth."

Anthony Selwyn, Co Head of Global Retail at Savills, comments: "What we are seeing is a clear recalibration rather than a slowdown in intent. With prime availability increasingly constrained, vacancy and quality of opportunity are now the key drivers of activity. Across Europe in particular, competition for core pitches is intensifying, which is creating early upward pressure in the most tightly supplied locations. As a result, brands are prioritising securing new space or upsizing in existing prime locations. Where the ability to do this is constrained, some brands are relocating to new pitches effectively extending the core pitch, albeit it is the top tier brands that are best placed to do this."

Europe stood out as a relative bright spot in 2025, recording average rental growth of 1.2%, outperforming other regions. Importantly, gains were not limited to the leading global luxury streets of London, Paris and Milan. A number of smaller destination markets, including Amsterdam, Vienna, and Copenhagen, also recorded positive rental movement over the year.

Marie Hickey, Global Retail Research lead at Savills, adds: "After the strong rebound in 2024, luxury rental growth slowed sharply in 2025, highlighting a more normalised and cautious market environment. Europe continued to outperform other regions, but growth has been highly concentrated, with sustained demand colliding with persistent supply constraints on a limited number of prime streets, a trend that we expect will continue well into 2026."

Chart: Top 10 Global Alpha & Destination Cities

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