Milan: the Commercial Success of the Galleria Vittorio Emanuele II is Generating Tens of Millions

Brands are increasingly in need of iconic locations, prestigious neighbourhoods and places where visitors also come to spend time, admire the architecture or have a coffee: the physical shop has once again become the heart of the luxury experience.

According to Cushman & Wakefield, the world leader in commercial property, benchmark rents rose by 10 per cent in 2025 to 11,538 euros per square metre per annum in Ginza, Tokyo. The mix of luxury boutiques, department stores, spectacular flagship stores, designer restaurants and distinctive architecture helps to enhance the area’s appeal.

Prague also has its own flagship location where property and the luxury retail sector reinforce one another: Parizska Street. Six new luxury boutiques opened there in 2025. Rents there reach around 2,800 euros per square metre per year, whilst new hotels and cultural venues are gradually enriching the visitor experience.

However, concentration does not guarantee eternal success. In Rio de Janeiro, for example, Garcia d’Ávila Street in Ipanema – which followed a similar commercial model and experienced the same property boom, with rents rising exponentially – saw Louis Vuitton and Hermès move to the VillageMall shopping centre. The neighbourhood is now reinventing itself around local designers and experiential boutiques.

Then there are other specific realities: in Paris, the area around Boulevard Haussmann, home to Printemps and Galeries Lafayette, demonstrates a different economic model. Galeries Lafayette alone welcomed 35 million visitors and generated €2 billion in turnover in 2025, representing 4 per cent growth. Galeries Lafayette has fared well despite the crisis in the luxury sector thanks to its ability to create, beneath its historic dome, a varied experiential environment: a spa in the basement, pastry workshops in the Gourmet area, and a new ice rink on the terrace due to open at the end of November.

However, whilst the Galeries’ success continues – with footfall on this section of the boulevard estimated last year by BNP Real Estate at 39.4 million visits – rent levels have not risen significantly in recent years and remain stable at around 5,000 euros per square metre per year. This example shows that commercial success is not necessarily linked to rising property prices, and that the factors contributing to their mutual growth are far more subtle and complex.