Investors have renewed confidence in the Scottish commercial property market, a new report suggests.
A new report by property consultants Ryden on the Scottish commercial property market said that the easing of political concerns was helping to restore confidence, reported The Scotsman in October 2017. The weak pound is encouraging foreign investors to Scotland.
The general election result and the unlikelihood of a second independence referendum soon have created the stability that encourages investment in Scotland. The effect that Brexit will have on the Scottish economy is unknown, but the Ryden report believes that it will impact the rest of the United Kingdom more significantly than Scotland. The report’s writers expect rental yields to remain higher than in the rest of Britain.
The two most popular areas to invest in are Edinburgh and Glasgow, but Aberdeen is also attracting investors. There is an undersupply and high demand for commercial properties in these areas. Any properties that come on the market, or new development opportunities, soon attract interest from investors. Several property deals are due to be completed in the last two months of 2017 in these cities.
Glasgow and Edinburgh are attracting a large number of overseas commercial property investors.
The report concluded that:
“Scotland does generally offer more value and this is clearly attracting investors from the UK and overseas.”
Though interest rates may rise, rates for commercial mortgages are expected to remain low. A mortgage broker will be able to find a suitable commercial mortgage for investors wanting to purchase or develop commercial property in Scotland.