Foreign funds to target capital property
Strong levels of overseas investment in Edinburgh’s commercial property sector are set to continue despite uncertainty over the UK’S future relationship with the EU, according to a forecast from Avison Young’s.
The property services group predicts a particularly strong appetite from Asian and North American investors in 2020, as limited Grade A office space in the centre of the capital is also expected to increase out-oftown take-up activity.
Stuart Agnew, principal and managing director for Avison Young Edinburgh, said: “We anticipate that overseas investors will again make up more than 50 per cent of all investment trading in Edinburgh in 2020, a trend started only two years ago.”
Avison Young’s Glasgow outlook anticipates strong demand for occupational office space will continue as the city benefits from large public sector requirements, private sector enquiries and a “healthy spike” in lease events.
Nick Axford, global head of research, added: “Following a period of sustained political turmoil, 2020 marks a new era for the UK. Whilst our commercial real estate sector will feel the impact of global trends including low interest rates and climate change, the next 12monthspresentsomevaluable areas of growth that investors and developers in the sector should look to harness.”
Meanwhile, a separate report from property adviser Savills found that Aberdeen’s office market experienced its strongest year since the energy sector downturn of 2014. Savills said the sector is now entering “recover mode”.