The total value of commercial property sales in Scotland fell in the second quarter of 2019 but for the first time since 2015 the market in Glasgow outperformed, the latest sector analysis shows.
Overall, at £614 million, commercial sales were the lowest in five years, the report from the Scottish Property Federation (SPF) shows, however it also reveals that the number of transactions increased, indicating a decrease in higher value transactions rather than a lack of activity.
However, Glasgow broke from the national trend with the total value of commercial property sales rising against both the previous quarter and the same quarter in 2018. Sales in Glasgow totalled £172 million in the second quarter, accounting for 28% of Scotland’s total commercial property sales.
Edinburgh lost its dominance to Glasgow with a significant fall in the total value of commercial property sales. At £108 million, Edinburgh’s sales values decreased by £156 million on the previous quarter and £14 million on the second quarter of 2018.
The report also reveals that the proportion of Scottish commercial property sales located in Edinburgh fell from 35% in the previous quarter to just 18% in the second quarter of 2019.
‘Glasgow was very impressive, 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 £5 million plus deals, totalling £129 million, whereas Edinburgh only secured £33 million in the same category,’ said SPF director David Melhuish
He explained that a notable feature of Scottish commercial property investment in the second quarter was the rise of capital sourced from Asia which topped £250 million for the first time on record, according to CoStar data. Ryden reported a standout £48 million transaction for a Korean client of Knight Frank Investment Management.
The data also shows that the total value of commercial property transactions in Aberdeen dipped to £30 million, down 27% compared to the first quarter of the year and down 76% compared to the second quarter of 2018. The total value of commercial sales in Aberdeen was the lowest figure for a second quarter in over seven years.
