Value of Scotland’s commercial property sales on course to reach four year high

2 Mar 2016

Policy area: Commercial

New figures show that the value of Scotland’s commercial property transactions in 2015 rose to £3.5bn, up from £3.37bn in 2014.  This continues a steady improvement in the value of sales since the low point of 2012 when just £1.5bn was recorded.

Figures from the Registers of Scotland, analysed by the Scottish Property Federation (SPF), show that Edinburgh boasted the highest value of sales figures in Q4 2015, worth £274m, a decrease of -1.4% as the market holds steady.

Aberdeen saw the value of sales increase from £50m in Q3 to £60.5m in Q4, but the value remains much lower than it was in Q3, reflecting the unsteady market following the downturn in the energy industry.

Dundee saw the biggest change in value of sales since Q3, where the total value of sales was £91m, up from £17m in Q3. Glasgow also saw an increase since Q3, from £224m to £200m.

The volume of commercial property transactions across Scotland also saw a quarter on quarter increase of 11.5%, from 1,107 in Q3 2015 to 1,234 in Q4 2015.

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. At the end of the financial year we should see a six year high in commercial property values although remains just over half of the value of sales recorded in 2006-07.”

“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.