The Scottish commercial property market is gradually catching up with the rest of the UK, new data from CBRE suggests.
According to the real estate consultancy’s latest report, momentum in the national market reached a new high in December and the confidence has continued throughout the first half of 2014.
Although property in Scotland is still under-performing when compared with the UK as a whole, the gap is starting to close, with the industrial and retail markets north of the border performing particularly well.
Overall, return values are down from 3.3 per cent in the final quarter of last year to 2.8 per cent, although the total annual figure for the year to March was recorded at 10 per cent – considerably higher than 0.2 per cent at the same time in 2013.
In terms of individual areas, the report highlights Aberdeen to be one of the strongest performers. CBRE’s senior director, Aileen Knox was quoted by propertywire.com as saying: “The office market in Aberdeen is the top performer with annual total returns to the end of March pushing ahead of the 20% mark, comparable to markets in the south of England such as Cambridge.”
Some experts have suggested that a ‘yes’ result in September’s independence vote has the potential to cause irreparable damage to Scotland’s property market. According to efinancialnews.com, Chris Taylor of leading real estate agency, Hermes said that a departure from the UK’s sterling currency would prevent his own company from investing in Scotland and could have a similar effect on other major organisations.
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