London has long been the best place for investing in commercial property, particularly since the financial crisis hit the UK and sent valuations in regional areas of the UK tumbling. However, as the economy continues to recover, and more and more businesses countrywide seek new places to operate, certain places are now doing far better than they have been in recent times. One such area is Scotland, where it has been reported that the number of property transactions taking place in the commercial sector nearly doubled in 2013.
According to findings published by Cushman & Wakefield, the number of property deals taking place in the country swelled substantially as the economy saw rapid recovery throughout the second half of the year in particular. It means the volume of transactions was at its highest since peak conditions were prevalent in Scotland throughout 2007. Not only did this mean that Scotland's commercial property market was getting back to health, however. It was also accelerating at a pace that outdid the majority of the UK - London aside.
Throughout 2013, commercial property deals in Scotland amounted to GBP 2.07 billion in value. This was a full 81 per cent higher than a year earlier when total value sat at GBP 1.15 billion, and only beaten by the GBP 3.3 billion recorded in 2007, with manufacturing, services and construction all picking up in terms of commercial business through 2013. David Davidson, managing director of Cushman & Wakefield in Scotland, said: "This has been one of the busiest starts we have ever had to a new calendar year and leads us to a very positive outlook for 2014.The Scottish Independence Referendum appears to be having no material impact on the Scottish investment market.
"Whilst some investors may be trying to reduce their holdings in Scotland, there are far more players who are prepared to bid at closing dates to secure high quality assets which have not been available elsewhere in the UK outside London," he added. His argument about the lack of impact the potential 'yes' vote in the referendum is having is hard to disagree with as well, especially with transactions in Scotland 21 per cent higher than the UK average for regional areas throughout 2013.
See how Scottish residential property is performing here
- Friday 14 February 2014