Annual investment volumes in Scottish commercial property continued on what has been called an upward trajectory in 2022, despite macro-economic challenges.
According to fresh figures from Knight Frank, some £1.66 bn (€1.89 bn) worth of deals concluded last year, marginally up on the £1.64 bn recorded during 2021 and the highest since 2019’s £2.02 bn.
Overseas investors continued to account for the majority of deal activity, with a 52% share of investment volumes during 2022. The purchase of 177 Bothwell Street in Glasgow by Spanish investment house Pontegadea was a record office transaction in Scotland, at more than £200 mln. Property companies were by far the second most active buyers representing 35%.
Nearly £500 mln of offices were traded, followed by industrials, alternatives, and retail which accounted for around £300 mln each.
Glasgow saw the highest investment volumes of Scotland’s three largest cities at £468.54 mln. Meanwhile, Aberdeen saw £143.06 mln worth of deals – the highest amount since 2019, when there were transactions totalling £204.24 mln.
Alasdair Steele, head of Scotland commercial at Knight Frank, said: ‘Investors have had a lot to contend with this year, between the conflict in Ukraine, rampant inflation, interest rates rising, bond and stock market volatility, and political developments. Yet, despite all of that, Scotland’s commercial property market has continued its upward trajectory from the lows of the initial outbreak of the Covid-19 pandemic nearly three years ago.’
