So, what are the most attractive opportunity city markets for global brands wanting to grow their European footprint?

London and Paris; still prime targets but securing opportunities has become increasingly competitive

London and Paris remain top priorities for cross-border brands and retailers due to their market size, affluence, and international reach, as reflected in their strong appeal to international visitors (see figure 11). However, constrained availability and a heightened focus on building and pitch quality have made these markets increasingly competitive, particularly for smaller, independent premium brands. Rising total occupational costs and fit-out expenses, especially for premium brands, have created additional margin headwinds with these expected to subside as we move through 2026 as trading conditions look set to improve.

Beyond London and Paris; strengthening gateway markets

So, which markets beyond London and Paris, should be moving up the agenda for brands seeking cross-border opportunities?

Using the same pillars that make London and Paris attractive—market size (retail sales), affluence (GDP per capita), and international visitor appeal (overnight international visitor numbers)—we’ve identified the top 20 gateway cities in Europe. Gateway in the sense that they are typically the entry points for new international brands entering a country.

While London and Paris are clear outliers, several smaller gateway markets offer compelling opportunities based on strong fundamentals and relatively attractive prime headline rents (see figure 12).

Madrid, gaining momentum

Madrid, the third-largest retail market in Europe by spend, has gained significant traction over the past 18 months. This is supported by robust domestic spending and growing appeal to affluent international tourists, underpinned by a xx% increase in luxury hotel supply over the past xx years. Prime headline rents on flagship high streets are nearly 10% below the European average, making Madrid an increasingly attractive entry point, particularly for US premium brands, some of which are now looking to Madrid over London for expansion opportunities.

Amsterdam and the Wider Benelux Region

Amsterdam, while smaller in market size, scores highly on international reach boosted by the entrance of new premium hotel brands and a strong domestic customer base. Prime rents on its flagship high street are nearly 20% below the European city average, offering strong value. Brussels and Antwerp (though the latter is not in the top 20) also show improving appeal, with both markets forecast to see some of the highest retail sales growth in Europe over the next three years, 6.0% and 6.2% per annum, respectively.

Germany’s market appeal poised for a rebound in 2026

Germany’s gateway markets are expected to regain appeal in 2026. The country’s macroeconomic challenges—reflected in declining consumer confidence and discretionary spending—are projected to ease, with economic growth forecast to accelerate. As one of Europe’s largest retail markets, this bodes well for consumer spending and occupier expansion strategies having moved down the target list for expansive international brands.

Berlin, Munich, and Hamburg are Germany’s key gateway cities. Berlin and Munich are forecast to see above-average retail sales growth through to end 2028 (3.0% and 3.2% per annum in real terms). Munich’s appeal to lifestyle and premium brands is enhanced by its wealth density—30% of households have disposable incomes exceeding US$100,000 per annum, compared to a gateway city average of 18%. Hamburg’s market size and relatively lower rents will also support its attractiveness to occupiers.

CEE markets to become more established expansion targets to a broader spectrum of occupiers

Consumer spending across CEE markets has accelerated over the past 15 years, making the region increasingly attractive notably for value-focused brands, with the region also exporting some of its own homegrown value brands. Looking forward, those top 20 European gateway markets in the region will continue to be lead performers in growth terms.

Warsaw, Prague, and Vienna will remain primary targets. Warsaw and Prague are especially appealing due to lower occupational costs, with prime flagship rents 70% and 20% below the gateway city average, respectively. Prague and Vienna’s international visitor appeal adds further value, particularly for aspirational brands, a trend evident over the past two years (see figure 9). Notably, 70% of new international fashion and jewellery entrants to Warsaw since early 2024 have been aspirational or luxury brands a theme expected to continue and expand to other CEE gateway markets.

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