England, Wales and Northern Ireland are at risk of being left behind as two Scottish cities outperform them in the commercial property market according to a report by Deloitte Real Estate.
Edinburgh skyline
Glasgow and Edinburgh have seen both a substantial growth in their rental market in 2012 as well as office space take up on the rise. Rent capital also remained steady for both cities, while Edinburgh saw its strongest letting year since 2008. Investments were also up in Glasgow with deals worth £152 million.
Speaking of the report, Alasdair Ramsay, Head of Scotland’s Real Estate at Deloitte, said: “Glasgow is one of the first regions outside of London to see any new development activity, which provides some reason for optimism for the next 12 months.
“With positive rental growth and the embers of recovery in Glasgow’s development market, we could well be looking at an even more positive picture come this time next year.”
So what can we expect from the two Scottish cities this year? Due to the lack of supply of Grade A office space Glasgow is predicting a five per cent increase in rental growth, whilst Edinburgh predicts a seven per cent rise.
Speaking of the change from London being at the heart of the commercial market, Anthony Duggan, Head of Real Estate Research at Deloitte, said: “Investors are increasingly being priced out of the London real estate market and are now seeking opportunities outside the capital.
“We’ve seen a large number of new entrants to the UK investment market cutting their teeth in London, and we now expect to see them beginning to pursue opportunities in the regions where there is the potential for higher income yields.”
Do you think people are getting priced out of London and are looking for investments and business opportunities in other larger cities, like Glasgow and Edinburgh? Or do you think the capital will always be at the heart of business for most people?
Previous Post
The Modern Office and Productivity
