Ryden has published its 84th Scottish Property Review, an in-depth analysis of the Scottish Property market looking at office, industrial, retail & leisure and investment property trends over the past six months, and how external factors have impacted the industry.
At a time when Scotland’s economy is delivering a steady but subdued growth, the market has been slightly affected by the political uncertainty surrounding the Brexit process, particularly in the property investment sector.
Occupation demand is still robust in the Glasgow office market, although take-up has inevitably receded after last year's substantial pre-lets. In Edinburgh, the volume of activity registered a significant increase with limited new development options currently on site, although new schemes are emerging. On the other hand, the Aberdeen office market is at a low point and is lagging an uptick in the local economy.
The West Scotland industrial market is heading towards a record low level of availability, yet occupier and investor demand is not stimulating sufficient development or refurbishment. In East Central Scotland, the sector remains resilient and, due to the increasing obsolescence of industrial property, landlords are prepared to undertake speculative refurbishments.
The political environment has contributed to lower activity levels in the property investment market, but there is still a significant weight of money in the sector with a healthy interest in the main Scottish locations. Dundee has also become an attractive location for investors due to the city’s well publicised renaissance.
Mark Robertson, Ryden Managing Partner and Scottish Property Review editor, commented:
“Demand for good quality office and industrial stock continues to be robust, and the development market is now responding with several projects completing or on site.
“Despite this, there is still an insufficient choice of modern premises in the Industrial property sector, and Aberdeen is still facing challenging times until the optimism created by a more stable oil price filters through.
“The outcome of Brexit negotiations will undoubtedly influence how the rest of the year will play out, but the Scottish commercial property market offers substantial performance opportunities for those investors able to look beyond the immediate uncertainties and grasp the thistle!”
Download the 84th Scottish Property Review here.