The latest central London retail leasing research from Savills reveals a significant uptick in investment, with volumes reaching £1.6bn in the first half of the year.

149-151 Oxford Street, sold by RLAMP earlier this year

This marks a 130% year-on-year increase and is 101% above the 10-year H1 average, already surpassing full-year 2019 totals.

Continuing this momentum, Savills anticipates that 2025 could exceed £2bn in retail investment, the highest annual figure since 2018.

Focusing on key retail streets across the wider West End, Q2 investment volumes were largely in line with Q1, bringing volumes for the first half of the year to £495m, which is 19% up year on year.

Full-year volumes are projected to exceed the £523m transacted in 2024, which is being driven by heightened activity on Oxford Street.

“We’re seeing a marked resurgence in investor appetite for central London retail, particularly in the West End,” said Charlie Stoneham, associate director of central London investment at Savills.

“Sovereign wealth funds and private equity are increasingly active, drawn by the sector’s compelling fundamentals – long, landlord-favourable lease structures, resilient footfall and relatively low capital expenditure requirements. The recent uptick in owner-occupier acquisitions also signals a shift in sentiment, with businesses committing to long-term presence in prime retail locations.”

Recent evidence includes the off-market acquisition of 149-151 Oxford Street in the second quarter of the year. Royal London Asset Management Property (RLAMP), advised by Savills, sold the 32,795 sq ft mixed-use property to a private investor for £63m.

The deal was the first owner-occupier acquisition on Oxford Street since Ingka Investments, the investment arm of Swedish brand Ikea, purchased 214-218 Oxford Street in 2021, part of which now accommodates an Ikea store.

Marie Hickey, director of research at Savills, added: “There are a number of factors supporting the renewed appeal of Oxford Street to investors and occupiers alike, with the pedestrianisation of the street, envisaged by the end of 2028, to be an added attraction.

“Likewise, the scale and quality of development on the street in recent years is delivering best-in-class retail and office space, all culminating to create compelling investment opportunities that will underpin momentum into the second half of the year.”