Commercial property sales in Scotland have fallen sharply

Commercial property sales in Scotland during the first quarter of 2019 fell by 21% compared to the same period in 2018, according to an analysis of the latest data to be published. The drop was largely driven by fewer high value transactions for this period, with the number of £5 million plus sales down by nearly a third compared to the first quarter 2018, the analysis from the Scottish Property Federation shows. According to David Melhuish, director of the SPF, the trend aligns with investment data suggesting a subdued start to 2019 for the Scottish commercial property sector but he pointed out that Edinburgh’s commercial property market is strong, accounting for 35% of the Scottish market by value. The investment data also highlights the rise in investor appetite for alternative property asset classes, such as hotels and Build to Rent. ‘For investors, Edinburgh remains a hotspot, while more broadly, low growth and lack of certainty in the economy is weighing down on activity,’ said Melhuish. The SPF analysis shows a 21% or £203 million year on year decrease in sales by value in the first quarter of 2019, with the value of commercial property sales in the quarter totaling £763 million.