UK shopping centre investment activity hit £1.5bn last year, according to the latest data from Savills.

Investment activity is expected to remain strong throughout 2026 with £3bn of assets expected to come to market over the next 12 months – this includes around £900m in partial stake sales.

The average lot size last year was £52.7m – up 15% on 2024 – with Institutional buyers playing a dominant role racking up six deals of more than £100m.

Net initial yields compressed from 13.6% in 2024 to 10.99% in 2025, with super prime, prime and town centre dominant assets all firming as competition increased. Sub‑£25m schemes continued to trade steadily, although this segment represented a smaller share of total volume.

Lottie Thomas, associate director of retail investment at Savills, said: “Investor behaviour is shifting decisively towards scale and conviction. We’re seeing strategic capital, particularly amongst institutional and US buyers, targeting assets that can deliver long‑term growth, irrespective of wider volatility. Debt markets have materially improved, giving investors the firepower to pursue opportunities with far greater confidence.”

Sam Arrowsmith, director of research at Savills, added: “The shopping centre market’s underlying strength is clear. Vacancy levels have fallen to their lowest since 2020 (16.9%), leasing demand is robust and the pipeline ahead is one of the strongest in years. For well‑capitalised investors with a strategic perspective, the next 12 months could present some of the most compelling opportunities we’ve seen in the sector.”