The UK shopping centre investment market is showing encouraging signs of resilience and strategic evolution, according to the latest research from Savills.
After a strong 2024, which saw transaction volumes hit £2 billion — the highest annual total since 2017 and 54% above the eight-year average — 2025 has so far presented a more subdued picture. In the first half of the year, just £483 million was transacted across 11 deals, marking a 40% decline compared to the same period in 2024.
However, Savills believes the fundamentals remain sound. Investor appetite for prime and super prime retail assets remains steady, and the borrowing landscape has improved significantly. Enhanced loan-to-value ratios and falling borrowing costs have made leverage increasingly attractive, helping to bolster confidence.
Despite some uncertainty in the macroeconomic and geopolitical environment, Savills’ outlook for the remainder of 2025 is optimistic. More than £3.5 billion worth of high-quality shopping centre assets are either on the market or expected to become available within the next 12 months. This pipeline includes around 15 schemes, signalling a potential uptick in activity.
That said, Savills notes a word of caution around possible oversupply, which could result in a few processes falling short of expectations.
Mark Garmon-Jones, director of retail investment at Savills, commented: “We’re witnessing a real change in how investors approach the market. High-net-worth individuals and institutional buyers are now making more targeted acquisitions, often independent of broader market sentiment. This signals the rise of a conviction-led investment mindset, particularly in the core-plus space, and renewed appetite from US investors despite the wider global uncertainty.”
Sam Arrowsmith, director of research at Savills, added: “While the first half of 2025 hasn’t matched last year’s momentum, there’s no doubt that the sector’s underlying strength remains intact. A combination of supportive debt conditions, persistent investor interest, and a robust stock pipeline suggests that the market is adjusting — not retreating. For investors ready to act strategically, the second half of the year could prove especially rewarding.”
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