Report | Intelligent Investment
Central London Retail Market Report H2 2025
February 26, 2026 7 Minute Read
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Central London’s retail market closed 2025 with renewed momentum. Tightening supply on prime streets, and returning investor confidence are reshaping the outlook for occupiers and investors alike. While consumers remain value conscious, London continues to assert itself as a global retail destination, attracting international brands, flagship investment, and long-term capital.
Key Takeaways
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Cautious Consumer Optimism
London consumer confidence increased over 2025, and declining inflation coupled with lower interest rates is expected to support household consumption in the year ahead. Though consumers are expected to remain cautious. -
Constrained Supply Driving Rents
Prime London streets remain tightly supplied, with most vacancy rates at 5% or below, supporting rental growth and the return of key money as brands compete for flagship locations. -
London a Magnet for New Entrants
London continues to attract international brands opening global or European flagships, with strong demand from fashion and health & wellness occupiers across prime locations. -
Investor Confidence Rebounds
Retail investment volumes rose by over 40% in 2025, underpinned by strong occupational demand, rental growth, continued estate sales, and owner occupier activity.
Read the full Central London Retail Market Report H2 2025 to explore detailed insights on consumer trends, leasing activity, rental performance, and investment dynamics shaping the year ahead.
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