UK shopping centre investment activity plummeted 40% to £483m in the first half of 2025, according to the latest Savills data, but could recover strongly in the second half.

Although activity was sharply down on the first half of 2024, Savills said that more than £3.5bn of ‘high-quality’ shopping centre assets were already on the market or expected to come to market in the next 12 months.

It predicted that this could lead to the total investment activity for the year exceeding the total of £2bn achieved in 2024 – which was the highest level of investment since 2017 and 54% higher than the eight-year average.

The firm noted that yield performance continued to reflect investor confidence in the sector, with town centre dominant yields hardening by 50 basis points (bps) in the year to date and prime yields also moving in by 50 bps in the last quarter.

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.”