In the first half of 2018, investment in Scottish commercial property increased by a record 86%.
Around £1.4 billion was invested in the first six months of 2018. Edinburgh property deals accounted for £692 million of this amount and Glasgow, £344 million.
The commercial property market in the first quarter of 2018 was sluggish, but a surge in the second quarter accounted for most of the 86% increase.
Following the Scottish independence referendum in 2014, there was a decrease in commercial property investment in Scotland. The latest figures show that investors have renewed confidence in the Scottish property market.
Amongst the notable deals was £80 million paid for the Skypark office development in Glasgow and the £27.5 million purchase of 113 unit build to rent residential block in Edinburgh. 9-10 ST Andrews’s Square in Edinburgh was sold for £25.75 million.
The office sector is the most active, but the hotel sector was busy. The Waldorf Astoria Hotel in Edinburgh was purchased for £85 million. Some retailers are struggling but there is still activity in retail property. Edinburgh’s Fort Kinnaird retails park sold for £167 million.
Most investors are attracted to low-risk investments, but these often have low income streams.
There is a lack of quality property, so when premium property comes on the market it sells for high prices.
Investors wanting to purchase commercial property in Scotland have access to a wide variety of commercial mortgage deals. A mortgage broker can source the best loans.