Savills: UK shopping centre market showing signs of resilience
The UK shopping centre investment market is showing signs of resilience a strategic repositioning, according to research from Savills.
This builds on a strong 2024 that saw transaction volumes reach £2 billion – the highest level since 2017, and a 54% increase against the eight-year average.
According to the international real estate advisor, whilst the first half of 2025 has seen a slowdown in activity, with £483 million transacted across 11 deals (down 40% against H1 2024), market fundamentals have remained strong. Savills said that investor appetite, particularly for prime and super prime assets, is undiminished, and the debt environment has markedly improved, with enhanced loan-to-value ratios and reduced borrowing costs making leverage more attractive.
According to the research, the market is poised for renewed momentum – despite geopolitical uncertainty – with a healthy pipeline of stock presenting significant opportunities for the remainder of the year. Over £3.5 billion in high-quality shopping centre assets are in or expected to come to market over the next 12 months, comprising approximately 15 assets. However, Savills warned that there is a risk of oversupply during this period, potentially leading to some failed processes.
Mark Garmon-Jones, director of retail investment at Savills, said: “We’re seeing a clear shift in investor behaviour. High-net-worth individuals and institutional buyers are increasingly focused on strategic asset acquisition, often irrespective of broader market dynamics. This marks the emergence of a conviction-led investment era, particularly in the core-plus segment, and reflects renewed interest from US capital despite the geopolitical backdrop.”
Sam Arrowsmith, director of research at Savills, added: “While 2025 hasn’t matched the pace of last year, the market’s underlying strength is undeniable. Supportive debt conditions, sustained investor interest, and a growing pipeline of high-quality assets all point to a market that’s recalibrating rather than retreating. For well-capitalised investors with a strategic lens, the coming months could offer some of the most compelling opportunities we’ve seen in years.”