In August, the Scottish Property Federation published its second quarterly report for 2018. The report bears a mixture of good and bad news for commercial property buyers and sellers.
Interestingly, Aberdeen revealed itself to be a thriving centre of commercial property sales activity, as it demonstrated higher sales values than both Glasgow and Edinburgh. The value of commercial property sales in Aberdeen totalled £123m in this quarter alone, which is 68% higher than the value presented during the second quarter of 2017.
This figure signifies Aberdeen’s rapid economic recovery in recent years, following the oil price crash of 2014. For the next two years after the crash, the city struggled. Unemployment rose dramatically, and property prices fell. Even in 2017, as the price of oil began to crawl upwards once more, transaction volumes only totalled £55 million; a stark contrast to 2014’s £600 million. The rise in sales of commercial property is a testament to the city’s resilience.
In Glasgow and Edinburgh, however, the report describes sales activity as “subdued,” as the total value of sales in Edinburgh was down by 46% when compared to this time last year, and Glasgow’s figure showed a 42% decrease in the value of commercial property sales. David Melhuish, director of the Scottish Property Federation, insists that “investment remains strong” across the sector, but it is interesting to see Glasgow and Edinburgh surrender their crowns as hubs of commercial activity to the Granite City.
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