Economic growth is entrenched in Scotland in 2015 and forecast to continue. This augurs well for the country’s commercial property markets. Exceptionally however, service sector output stalled during late 2014.
City office markets are in transition. Demand in Glasgow and Edinburgh has accelerated and the timing of new developments in both cities looks favourable. The market balance in Aberdeen has switched as increased supply meets fewer requirements from the dominant offshore energy industry.
Industrial property demand increased sharply in the Central Belt post-Referendum. Vacancy rates are falling below normal levels and some prime estates are full. The development industry has yet to provide a meaningful response. The industrial market in Aberdeen is still active despite the lower oil price.
The retail sector continues to focus mainly on city centres, prime shopping malls and leisure uses.
The property investment market is broader based and making up for lost time. Activity is weighted towards larger transactions. Where market fundamentals are clearly improving, increased investor interest is following.
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