The UK shopping centre investment market is poised for a strong second half of the year with 17 transactions, with a combined capital value of more than £1.1bn, currently under offer, according to new research from Savills.
A further 19 centres remain on the market with a combined quoted value of around £320m. UK shopping centre investment activity soared in Q1 2026 with transactions totalling £418m completing. However, activity slowed in Q2 with transactions worth just £85m completing across four deals.
Merry Hill (pictured) and The Broadway, Bradford, accounted for approximately 72% of H1 transaction volumes, continuing the trend of larger lot sizes driving activity in the sector.
Shopping centre vacancy fell to 16.1% in Q2, its lowest level in 10 years and the sharpest quarterly improvement since Q1 2016.
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.”
Sam Arrowsmith, commercial research director at Savills, added: “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.”
