Luxury retailer activity and vacancy
Luxury retailer activity remains high and focussed on EMEA’s key luxury streets, Prague’s city centre being no exception. With 0% vacancy on its main luxury destination – Pařížská and the surrounding streets – retailers’ opportunities to secure space are challenging, particularly for in-demand larger stores. These demand-supply dynamics are keeping upward pressure on rents which we have seen recovering in luxury streets at a faster rate than for all high streets across Europe.
Prague's luxury store openings in 2024
Prague’s luxury retail precinct saw five new luxury store openings in 2023. In Pařížská, Polo Ralph Lauren unveiled its new flagship store and the brand’s first full-price store in the Czech Republic, and Jimmy Choo opened a new Czech flagship store after a year's absence. Luxury watch retailer Rado, ready-to-wear brand Zadig & Voltaire, and winter clothing brand MooRER opened in nearby streets.
At the end of 2023, Pařížská had no vacant space, reflecting the level of demand in this key luxury destination. This constraint in supply and high levels of retailer interest in the street have led to new development being brought forward which will create fresh opportunities for retailers desiring space in this sought-after luxury area. Two projects are to be completed in 2024 that will enlarge the existing 20,000 sq m of desirable retail space by more than 15%:
- The former InterContinental hotel is being transformed into the new five-star Fairmont Golden Prague, and the development will add six new retail units, totalling nearly 2,400 sq m.
- Kaprain Real Estate’s Pařížská 25 development will deliver additional almost 1,000 sq m of luxury flagship retail space.
With sales of EUR 0.7 billion in 2023, the Czech luxury retail market achieved an 8.1% increase year on year. Along with developments in the other 15 European cities surveyed, it confirms that luxury markets remain resilient, bolstered not only by high-wealth luxury shoppers but also the return of high-spending tourists to Europe.
Read Cushman & Wakefield’s European Luxury Retail report to find out more.
