Confidence is continuing to return to the UK’s retail property market, with new research from Savills revealing a £1.4 billion pipeline of shopping centre investments that is expected to drive a strong second half of 2026.
According to the real estate adviser, 17 shopping centre transactions with a combined value of £1.1 billion are currently under offer, while a further 19 schemes, worth approximately £320 million, are actively being marketed. Together, the figures point to renewed momentum across the investment sector following a mixed start to the year.
Although transaction volumes slowed during the second quarter, Savills believes this masks a much healthier underlying market, with substantial investor interest now focused on larger, high-quality retail destinations.
For the construction and property sectors, the resurgence reflects growing confidence in well-positioned mixed-use retail assets that offer long-term redevelopment, asset management and placemaking opportunities alongside resilient occupier demand.
During the first half of 2026, average shopping centre transaction values reached £44 million – the highest level recorded since 2016. Landmark deals involving Merry Hill and The Broadway, Bradford accounted for around 72% of total transaction activity, highlighting the renewed appeal of institutionally significant retail assets.
Savills believes the second half of the year will see activity accelerate as transactions currently progressing through the market reach completion.
Mark Garmon-Jones, Head of Shopping Centre and Retail Investment at Savills, said: “The second half of the year is where we expect the market to become much more active. H1 was respectable, but uneven, with a strong Q1 followed by a quieter Q2. What matters now is the depth of the pipeline; this is not a market short of demand, but one where activity is increasingly being driven by better-quality assets.”
The research also highlights a notable return of institutional investors and REITs to the shopping centre market after several years of limited activity. Investors are increasingly targeting dominant retail destinations with strong occupational performance and opportunities for long-term value creation through active asset management.
The improving occupational market is further strengthening investor confidence. Shopping centre vacancy rates fell to 16.1% during the second quarter, the lowest level recorded in a decade and the sharpest quarterly improvement since early 2016.
Savills attributes the decline in vacancy to strengthening leasing demand, delayed occupier decisions finally progressing, continued pressure on the constrained retail warehouse market and the ongoing repurposing of secondary retail space for alternative uses.
Sam Arrowsmith, Commercial Research Director at Savills, said: “The shopping centre market enters the second half of 2026 in a stronger position than the Q2 figures alone suggest. Vacancy has seen the largest quarter fall in 10 years, leasing demand is improving and the return of institutional capital is a clear signal that confidence is rebuilding. The risks are more about timing than direction, and for well-capitalised buyers the window to secure high-quality assets ahead of further yield compression is narrowing.”
As retail destinations continue to evolve into mixed-use environments incorporating leisure, hospitality, workspace and residential elements, the latest research suggests investor confidence is steadily returning. With a substantial pipeline of transactions progressing and occupier demand strengthening, the shopping centre sector appears well placed for renewed investment activity throughout the remainder of 2026.
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