New development required
Sales slump shows property market ‘subdued’
David Melhuish: fragile market (photo by Terry Murden)
Commercial property transactions in Scotland fell for the third quarter in a row for the first time since 2012.
Figures from the Registers of Scotland show a 12% fall in sales on the second quarter to £693 million. The number of sales also dipped, down 8% to 1,089.
The number of £5m+ commercial properties sold fell from 32 to 22, the lowest at this level of the market since Q2 2014.
David Melhuish, chief executive of the Scottish Property Federation, said: “We have not seen three consecutive quarters of negative growth in commercial real estate sales since 2012 and I think that it is a reminder of just how fragile our market is currently.
“While investment transactions appear to be slightly stronger than in the same quarter last year, the overall market remains subdued.
“We also need to get more commercial property of the right type and quality into our market and this is where the development process must be efficient and effective.
“With Edinburgh and Glasgow among key locations experiencing high levels of business occupancy we must deliver new commercial property to meet demand.”
Despite the declining figures, property information leader, Costar UK, reported a slight improvement in investment volumes with £416m invested across all commercial property sectors in Q3 2017. This brings the investment total for the first three quarters of 2017 to £1.57bn.