Scots commercial property deals hit £3.5bn

tland in 2015

The value of Scotland’s commercial property sales is on course to reach a four year high of £3.5 billion, with Edinburgh and Glasgow leading the way, according to the Scottish Property Federation (SPF).

Figures from the Registers of Scotland, analysed by the SPF, show the value of commercial property transactions in 2015 rose to £3.5 billion from £3.37 billion in 2014.

This trend continues a steady improvement in the value of sales since a low point of 2012 when £1.5 billion was recorded.

Edinburgh had the highest value of sales in the fourth quarter of 2015 at £274 million, a slight fall of 1.4%.

Glasgow commercial property sales increased from £200 million in the third quarter to £224 million in the fourth.

Aberdeen’s sales increased from £50 million in Q3 to £60.5 million in Q4, but the volume remained much lower than it was in Q3, reflecting the city’s unsteady market following the downturn in the energy industry.

Dundee saw the biggest change in value of sales since Q3 — sales soared from £17 million in Q3 to £91 million in Q4.

The total volume of commercial property transactions across Scotland also saw a quarter on quarter increase of 11.5%, from 1,107 deals in the third quarter of 2015 to 1,234 deals in Q4.

David Melhuish, director at the Scottish Property Federation, said: “It is good to see that Scotland’s commercial property market is recovering, and that it is doing so at a steady pace.

“The number of transactions looks to be levelling off, but it is important to see growth taking place at a sustainable rate …

“Edinburgh saw strong figures due to big office deals and hotels too, but figures remain steady compared to the previous quarter.

“There is slight sign of recovery from the huge drop in sales experienced in Q3 by Aberdeen, but with the downturn in the energy industry, I am doubtful we will see much growth in the coming years.”