£300m of deals in pipeline

Property projects held up by ‘at least’ six months

4-North-St-Andrew-Square-Edinburgh-House

4 North St Andrew Square was a £31m deal

A number of large property deals in Edinburgh and Glasgow worth £300 million are being held up by continuing uncertainty over the economy.

They are among key development projects in both cities which are set to be delayed by at least six months, says a new review of the property sector.

Chris Macfarlane, director of market newcomer Lismore Real Estate Advisors, says: “There are currently £300m in a small number of large transactions currently under offer in Glasgow and Edinburgh, but it remains to be seen whether these proceed or are renegotiated.

“Despite the uncertainty, Edinburgh will continue to succeed and remain attractive to UK and overseas investors, although the supply pipeline remains seriously constrained.”

Lismore’s first issue of Intelligence found that, not surprisingly, the majority of investors are focused on income protection and rent collection, while taking a “wait and see” approach to new opportunities.

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Flexible offices will remain in demand, with only 5% of staff expecting to work a full five day week in the office post-COVID.

However as restrictions lift, the office will become “hugely important again” for forging a business culture and proving much-needed human interaction.

UK institutions remain focused on long-income investment, with build-to-rent, senior living, care homes and student accommodation being the sectors of choice for the remainder of the year and into 2021,

After an encouraging first quarter, the review shows that Scottish transaction volumes were down by about 70% against the five-year average over the same period.

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