The total value of commercial property sales in Scotland fell to £614 million in the second quarter of 2019 — the lowest in five years — according to the latest analysis from the Scottish Property Federation (SPF).
For the first time since 2015, the value of commercial property sales in Glasgow surpassed Edinburgh.
While total sales values fell, the number of transactions increased, indicating a decrease in higher value transactions rather than a lack of activity.
Sales in Glasgow totalled £172 million for Q2, accounting for 28% of Scotland’s total commercial property sales.
At £108 million, Edinburgh’s sales decreased by £156 million on the previous quarter and £14 million on Q2 of 2018.
The proportion of Scottish commercial property sales located in Edinburgh fell from 35% in the previous quarter to just 18% for Q2 2019.
SPF director David Melhuish said: “Glasgow was very impressive this quarter, outperforming Edinburgh for the first time in four years against a wider Scottish market that saw a reduced value of sales activity.
“Glasgow’s sales increase was fuelled by a number of £5m-plus deals, totalling £129m, whereas Edinburgh only secured £33m in the same category.
“A notable feature of Scottish commercial property investment in the Q2 period was the rise of capital sourced from Asia, which topped £250m for the first time on record, according to CoStar data.
“Ryden reported a standout £48m transaction for a Korean client of Knight Frank Investment Management.”