Luxury now means so much more than product, for brands it is increasingly about the connection they have with their customers. This is being reflected in store portfolios, curation of unique and exclusive events and the move into hospitality, whether that be travel or food; the lines between retail and experience are blurring. And while recent turbulence is generating uncertainty, it is also shining a light back on the foundational pillars of luxury; creativity, craftsmanship and scarcity, pillars that will define a clear strategy going forward.

We are at a moment in the industry where there is terrific change, particularly in terms of leadership, both creative and corporate, which we believe will provide a necessary injection of creativity, excitement and growth.

A clear strategic focus through 2025 and beyond will prove paramount amongst brands whilst they explore new markets and attend to existing portfolios, particularly in light of wider market conditions. Navigating luxury globally is complicated and whilst we are seeing brands take the opportunity to expand their presence, careful consideration is required more than ever to find the best paths to success. This is already being reflected in the store expansion witnessed in 2024, with a shift back to markets with high concentrations of wealth, particularly those with international visitor reach.

Beyond those geographical trends in store expansion, this publication explores a range of themes touching on the recent flurry of creative director changes, whether the enlargements in store footprints exacerbated the slowdown, and rental trends across the world’s premier luxury destinations. We provide our thoughts on how the return to the foundational pillars of luxury could translate into real estate strategies, identifying those top markets that align with this refocus.

There are contributions from our local experts in the Middle East and London. We also spoke to Sunny Gill from Gill Capital, who took us through the opportunities a strategic partnership could deliver in a diverse region such as Southeast Asia. Likewise, the custodians of Oslo’s premier luxury destination, Promenaden, and the world’s oldest department store, Steen & Strøm, provided their insights to why Oslo is bucking the wider trend and seeing growing luxury spend and what the future holds for the city as a luxury destination.

Looking to 2025 and beyond, we set out the key factors that will shape luxury real estate strategies. These include;