Bucharest is emerging as a key luxury retail destination in Central and Eastern Europe, supported by rising purchasing power, growing tourism dynamics, and the consolidation of prime high street and premium retail locations, according to an analysis by the real estate consultancy company Cushman & Wakefield Echinox. 

The capital remains the main gateway for international brands entering the Romanian market, and accounts for approximately 25% of total national retail spending, supported by a population of around 1.7 million residents in the city and over 2.3 million in the metropolitan area, as well as by net salaries of more than 30% above the national average. 

Over the past six years, luxury brands have reported consistent sales growth, with the market reaching annual revenues of approximately EUR 150 million, double compared to 2019. The figure could increase significantly following the recent store openings on Calea Victoriei at the end of last year, the analysis argues.

Luxury retail in Bucharest is driven by a network of premium destinations, both within dominant shopping centers and along established high streets.

Calea Victoriei has established itself as Romania’s prime luxury high street, with a strong mix of international brands, five-star hotels, and premium food & beverage concepts, which has driven higher international tourist traffic and strengthened local demand. Prime rents for luxury retail spaces here and on adjacent streets can exceed EUR 100 per sqm per month for units of 100-200 sqm in the best locations. 

Calea Dorobanti has become a key destination for luxury brands as well, supported by the surrounding high-end residential neighborhoods and affluent local community. In addition, its proximity to the central business district and the Floreasca-Barbu Vacarescu business hubs, as well as the presence of numerous diplomatic missions in the vicinity, strengthen its commercial relevance.

The development of luxury retail in the city is also supported by the strong performance of shopping centers and retail galleries such as Băneasa Shopping City and The Grand Avenue within the JW Marriott Bucharest Grand Hotel, which hosts a mix of premium and luxury brands. 

“In a European context shaped by more moderate growth in luxury retail sales, Bucharest is beginning to stand out as an emerging market, supported by solid demand from high-income consumers and increasing interest from international brands for premium locations. The limited supply of ultra prime retail space, particularly on Calea Victoriei and in adjacent areas, creates the conditions for continued rental pressure and aligns Romania’s capital with the trends observed on Europe’s leading luxury streets,” Raluca Zlate, Senior Consultant Retail Agency Cushman & Wakefield Echinox, explains.

In Europe, the luxury retail market is going through a period of recalibration, marked by moderate sales growth, but continued strong interest from brands in expanding their physical store networks, the analysis notes. At the European level, luxury retail sales increased by approximately 0.5% in 2025, amid more cautious consumer demand. Despite this moderation, luxury retailers continued to invest in brick-and-mortar stores across Europe, with 96 new stores opened along 20 of the most important luxury shopping streets in 16 European cities, a higher level than in 2024. 

(Photo: Masezdromaderi/ Dreamstime)

simona@romania-insider.com