Overall investment in the commercial property market in Scotland in 2013 has shown yet again just how much the regional areas of the UK are now performing. It has been one of the high points of the return to economic health in the UK that commercial strength has begun to expand away from the capital, and this has been further shown by the latest report released this week by the CBRE group.
In 2013 in Scotland, commercial property returns sat at some 7.3 per cent. This was far in excess of the one per cent seen a year before, and the CBRE said of the final quarter of the year that it was the strongest three-month total witnessed in Scotland since the first quarter of 2010.
In the final three months of the year, the returns witnessed across the nation amounted to some 3.3 per cent. This was far ahead of the 2.3 per cent that had been seen in the three months before, with the quarter being the one that helped to propel the market in Scotland forward throughout the year as a whole. However, Scottish commercial property still has more room for recovery, with the report stating that although it has started to close the gap on the UK as a whole, "Scottish property continues to underperform". Overall UK returns amounted to more than ten per cent in the same time.
Nearly half of all the transactions that took place in the Scottish commercial property market in the last year were in the final quarter of the year as well, showing just how well it performed compared to the rest of the year. During this time, offices and retail outlets were the main drivers of growing investment. The latter was the best performer, with the year bringing in GBP 742 million, compared with GBP 233 million the year before. Aberdeen's Bon Accord and St Nicholas Shopping Centres and Glasgow's St Enoch Centre accounted for about half of the total, the report added.
- Thursday 27 February 2014