The Paris luxury retail and property market soared in 2022, according to a new study.
We take a look at why the French capital continues to grow as a hub for luxury commerce.
An accelerated rebound post-Covid
While the Covid-19 pandemic caused major setbacks for retail markets around the world, Paris luxury retail is showing an accelerated market rebound.
A leading global real estate firm reports an exceptional number of store openings in Paris last year.
In total, France opened 36 new luxury stores in 2022, with the majority in the capital. That’s growth of 57% compared to the previous year.
Looking ahead, luxury retailers now have commitments to open 53 new stores in the future. That’s up by 152% year on year and a new all-time high.
It shows exceptional confidence in Paris and its power to draw shoppers from around the world to visit, to stay, and to spend their money here.
Every conceivable brand is here, from Chanel and Dior to Saint Laurent, Givenchy and Louis Vuitton. The French capital continues to be the epicenter of fashion and luxury.
Why is Paris luxury retail growing?
The report points to a few reasons why Paris luxury retail is not just rebounding from the pandemic, but growing beyond expectations.
First is the resurgence of tourism, mostly concentrated in Paris.
With 44 million tourists in 2022, it’s the most popular city in the world. And naturally, those visitors will be out spending their euros.
So while Paris tourist numbers are not quite back to their pre-pandemic levels, it’s a positive trend, with visitors up 95% compared to 2021.
Also, the dollar has stayed strong for most of this year, giving American tourists even more of an incentive to indulge in luxury retail while visiting.
The most popular property locations
Boulevard Saint-Germain takes the top five spots for retail property transactions last year.
But Avenue Montaigne has made something of a comeback, with commercial transactions surpassing Rue Saint-Honoré for the first time in five years.
It’s these two streets that remain the most coveted addresses for luxury brands in Paris. New stores for 2022 included Celine, Gucci, and Jimmy Choo, while others such as Alexander McQueen, Dior, and Saint Laurent enjoyed extensive renovations.
And more are opening soon – perhaps as many as 40 new boutiques – this year and next.
Luxury retail is also expanding over on the Left Bank. This includes a new Rolex store on Rue de Sèvres, along with a new Gucci store on Boulevard Saint Germain.
It’s clear the luxury retail market in France is currently on a positive trajectory and expected to continue growth into 2024, ahead of the Olympic Games taking place next summer.
New retail property investments underway
With Paris luxury retail continuing to grow, several conglomerates are making new property investments here.
The report also mentions purchases of retail space in central Paris totaling several billion euros.
Some of these include Gucci, owned by global luxury group Kering, purchasing over 2,000m2 of new retail premises at the corner of Rue Saint-Honoré and Rue de Castiglione in the 1st arrondissement (district).
Other retail purchases are around the iconic Champs-Elysées, which continues to transform with more and more luxury stores opening this year.
A major change is the refurbishment of Louis Vuitton’s vast 18,000m2 store at 22 Avenue Montaigne.
We reported about this and the wider transformation of the famed boulevard in a recent blog.
Analysts also suggest, “These flagship buildings owned by major luxury groups could influence the surrounding rental market”.
Paris is outperforming London
In a separate report, luxury fashion house Burberry states retail sales are stronger in Paris than in London, its home city.
The British brand reported sales rose by 20% last year, pointing to a stronger tourist shopping boom in Europe.
Ian Brimicombe, Chief Financial Officer at Burberry said, “We are definitely seeing a stronger recovery of shopping in continental tourists compared to the UK.”
One of the reasons is the removal of tax-free shopping for foreign visitors in the UK, making shopping in France more attractive.
It’s another way Paris luxury retail continues to grow as we look to the remainder of 2023 and further ahead to 2024.
Get in touch with 56Paris
With Paris luxury retail soaring, it’s certainly a fantastic time to consider your own investments in the city.
We have a team of property experts on hand to offer free advice. Why not get in touch today?