The latest figures from the Spanish luxury association Luxury Spain show that Spain’s luxury market generated revenue of EUR 20.55 billion in 2025, up 6.2% year on year, ranking fifth in Europe behind France, Italy, Switzerland and Germany.
Beyond the appeal of coastal holiday destinations such as Ibiza and Mallorca, luxury shopping districts in Spain’s major cities, led by the capital Madrid, are also gaining considerable momentum.
According to a Cushman & Wakefield study released in April this year, eight luxury stores opened on Spain’s main luxury shopping streets in 2025, with five concentrated in Madrid’s premier luxury shopping district, the “Golden Mile”.
Located in the Salamanca district (Barrio de Salamanca) in central Madrid, the Golden Mile is centred on Serrano Street, which runs north to south, and José Ortega y Gasset Street, which runs east to west. Its cultural heritage and shopping atmosphere rival those of Milan’s Via Montenapoleone and Paris’s Avenue Montaigne.
Developed in the second half of the 19th century, the neighbourhood was designed by José de Salamanca y Mayol, the Marquis of Salamanca, as an exclusive residential area for Madrid’s aristocracy and bourgeoisie. Over the past 50 years or more, it has attracted diplomats and businesspeople, followed by a growing concentration of fashion and luxury stores.
The founder of Madrid Luxury District, an association of retailers in the area, said the aim was to turn the Golden Mile into “an ecosystem bringing together fashion, jewellery, fine watchmaking, gastronomy, hotels and unique spaces“.
José Ortega y Gasset Street retains its position as the district’s traditional luxury retail axis, with large stores from leading luxury brands including Dior, Hermès, Celine, Valentino, Balenciaga, BVLGARI and Prada.
Renovation work began last July on Chanel’s store at 16 José Ortega y Gasset Street, with an estimated investment of EUR 10 million to EUR 20 million. The expansion will bring its retail floor space to 1,200 square metres, making it one of Europe’s largest flagship stores.
According to Savills, the retail vacancy rate on José Ortega y Gasset Street stood at 9.7% in 2025, down two percentage points from 2024, while rents rose 2% to EUR 182 per square metre per month.
Nearby Serrano Street has gained prominence in recent years, with retail rents now exceeding those on José Ortega y Gasset Street. Rents rose 5% in 2025 to EUR 258 per square metre per month, while retail vacancy rates in prime locations were close to “zero”. Luxury brands including Louis Vuitton, Gucci, Saint Laurent, Cartier, Bottega Veneta and Tiffany & Co. all have stores on the street.
Luxury Spain said that spending by international tourists is the primary driver of Spain’s luxury sector, accounting for three-quarters of the overall market, while domestic spending accounts for just 26%. European visitors contribute 21% of spending, with Chinese tourists accounting for 20%, followed by visitors from Latin America (16%), the United States (15%) and the Middle East (12%).
Spanish luxury and fashion brands therefore also use the district as a showcase for international audiences. Loewe’s global flagship is located at 34 Serrano Street, while Valencia-based couture and bridalwear brand Isabel Sanchís opened its first Madrid store on the same street in February this year. Galician designer brand Adolfo Domínguez and century-old Spanish fine jewellery brand Suárez are among the other names engaging directly with international consumers here.
Jewellery and watches have accounted for the largest share of new luxury store openings in recent years. In 2025, Longines opened its first store in Spain on José Ortega y Gasset Street, while Chopard relocated and reopened its store on Serrano Street…
Since the start of this year, Van Cleef & Arpels’ second store in Spain and RICHARD MILLE’s first Spanish store have opened on José Ortega y Gasset Street. Audemars Piguet’s first directly operated boutique in Spain is expected to officially open in early 2027.
| Sources: Fashion Network, Savills, Cushman & Wakefield, Tourism Madrid
| Image Credit: Official brand accounts, Madrid Luxury District
| Editor: Luxeplace
