Savills: prime shopping centre rents in Europe have increased over the past three years

According to the latest research by Savills, over the past three years prime shopping centre rents in Europe have increased by 2% (CAGR), with Lisbon and Milan topping the ranking, both recording growth of 8,1%.

The two markets benefit from extremely low vacancy rates, standing at 3,1% and 1,3% respectively. Given the limited supply, due to a constrained pipeline of new developments, favourable conditions for further growth in prime rents are set to persist.

The situation in Europe

Retail sales in Europe are expected to grow by 1,3% in 2026, supported by the performance of Central and Eastern Europe (CEE) and the Nordic countries, followed by the United Kingdom and the Iberian Peninsula. While spending habits are increasingly differentiated according to age and income level, Europe’s population continues to age. By 2050, the average age of the population is expected to reach 48,2 years, while the population aged 80 and over is set to almost double.

According to Savills, shopping centres accounted for 34% of total retail investment in Europe in the first half of 2026, reaching the highest share since 2022. The recent compression of yields was driven by Spain, where prime yields fell by 50 basis points compared with the fourth quarter of 2025. Year on year, Prague, Lisbon, Milan and London recorded a 25-basis-point contraction in prime yields each.

The different categories

In this context, pharmacies and the health & beauty sector are confirmed among the retail categories with the best growth prospects through to 2030 (+4% annually). By contrast, after the exceptional performance recorded in the post-pandemic period, sales growth in the clothing and footwear (1%) and homewares (2%) sectors is expected to slow. Over the medium to long term, evolving spending habits could lead to a gradual reallocation of space within shopping centres in favour of categories such as health and pharmacies, services and essential goods.

The comments

Riccardo Crepaldi, head of retail management: “Shopping centres are going through a phase of evolution, in which the ability to adapt to new consumer behaviours is becoming increasingly decisive. The results for the first few months of 2026 confirm resilient performance, with food, personal care and services among the main drivers of growth. At the same time, the redevelopment of assets, the introduction of new categories and a tenant mix increasingly focused on experiences and services are fundamental levers for strengthening the appeal of shopping centres and capturing changing demand”.

Marco Montosi, head of investment at Savills: “Italy continues to rank among the most dynamic markets in Europe for shopping centre investment, supported by solid fundamentals and one of the most attractive risk-return profiles of the cycle. In a European context characterised by growing investor interest in the sector, Italy is among the leading markets of interest for international capital, with a positive medium-term outlook”.

This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.