INVESTMENT in Scotland’s commercial property sector dropped by 41 per cent last year to £2.2 billion, according to a leading information provider, with Aberdeen recording the country’s biggest fall.
CoStar Group said investment in offices in Aberdeen fell by 78 per cent to £118 million – from £539m in 2014 – reflecting the economic difficulties posed by the low price of oil.
However, it said offices in Glasgow and Edinburgh achieved a record year, with combined investment of £736m. The company said that despite Scotland’s fall from £3.5bn in commercial property investment, 2015 was still a strong year, with foreign investment up by three per cent. Spending by UK investors, however, fell by 46 per cent.
Foreign buyers had accounted for 34 per cent of the purchase volume, up from 20 per cent in 2014, and the five-year average of 19 per cent. In addition, £956m was spent on offices in 2015, which was 44 per cent above the five-year average.
CoStar analyst Grant Lonsdale said: “There is no longer any brand new office space coming to the market in Glasgow and Edinburgh, as the three buildings set to deliver in 2016 are entirely pre-let, although there are refurbishments under way, which could fill the supply gap.
“For these reasons, growth in both prime and average rents can be expected.
“However, investment activity across all sectors in Aberdeen has dropped dramatically, which can be largely attributed to the collapse of the oil market.”
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