Knight Frank report

Investment surges into capital commercial market

Caledonian Waldorf
The Caledonian Waldorf: one of the big deals of the year

Investment into Edinburgh’s commercial property market has nudged ahead of the total for the whole of last year, according to analysis by Knight Frank.

It found that £596 million of deals have been completed so far this year, which compares with £555m for the 12 months of 2022.

Retail property is on course for its best performance since 2017, up 70% with £170m changing hands in the year to date. Among the retail assets in Edinburgh to trade hands during 2023 are Craigleith Retail Park and Corstorphine Retail Park.

High profile transactions include Argyle House, near Edinburgh Castle, which fetched £38m in one of the biggest office deals of the year.

Hotels have also been an active sector in Edinburgh, with £114m worth of deals. The figure is the second highest in the last five years, after 2021’s £196m.

Edinburgh’s Waldorf Astoria was acquired in July and several properties on St Andrew Square have been purchased for redevelopment to hotels

Institutional buyers have been behind 41% of investment volumes in the city during 2023, with international investors representing another 37%.

Edinburgh accounts for around 46% of total investment in Scottish commercial property so far this year.

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