Luxury retail in Singapore has shown resilience amidst global economic challenges, with prime rental growth reaching 2% in 2025, according to Savills’ Global Luxury Retail Outlook 2026. This growth surpasses the global average of 0.9% across 27 core luxury destinations, highlighting Singapore’s status as a key player in the luxury retail sector.
The report indicates a shift towards more selective luxury retail strategies worldwide, driven by macro-economic headwinds and changing travel patterns. Despite these challenges, Singapore remains a top destination for luxury store openings, ranking among the top 10 cities globally. The city-state’s limited availability of prime retail space in areas like Orchard Road and Marina Bay continues to drive competition and support rental growth.
Sulian Tan-Wijaya, Executive Director of Retail & Lifestyle at Savills Singapore, noted, “Singapore is regarded by many as Asia’s most stable and sophisticated financial sanctuary for ultra-high-net-worth individuals. The city-state remains highly sought-after by luxury brands.”
Globally, Europe recorded a 1.2% rental growth, with cities like London, Paris, and Milan leading the charge. Anthony Selwyn, Co-Head of Global Retail at Savills, commented on the trend, stating, “With prime availability increasingly constrained, vacancy and quality of opportunity are now the key drivers of activity.”
Looking ahead, the luxury retail market is expected to stabilise, with selective growth anticipated in core European streets. As brands recalibrate their strategies, Singapore’s position as a luxury retail hub remains strong, bolstered by its appeal to high-net-worth individuals and international tourists.
