Commercial property sector unfazed by poll

SCOTLAND’S share of UK commercial property investment continued to increase in July despite uncertainty created by the independence referendum.

Property adviser Colliers International found that the market has not cooled as much as it expected. Instead, it says, the pending vote “has slowed what may turn out yet to be a very strong year”.

July transactions in the sector hit £83 million north of the Border, compared to £59m in the same month a year earlier.

The firm estimates that Scotland’s share of UK transactions in the third quarter of 2014 looks to be around 4.5 per cent and headed back toward its long-term trend after a period when it has been lower.

Aberdeen has accounted for one-third of all Scottish transactions in recent months thanks to the booming energy industry.

In a report released ear- lier this year, Colliers suggested many Scottish property deals were being put on hold as investors saw little risk in waiting for a few months in order to see the outcome.

Tom Johnston, joint head of Scotland at the firm, said: “As the referendum draws near some investors have taken the view that it won’t hurt to wait. However, it is very much a two-way street and many are still chasing prime opportunities where there is decent product available.

“I suspect that when the dust settles on 19 September, the market will accelerate. We’re certainly gearing up for that ourselves and taking the opportunity to move into new offices.”

Collier’s earlier report concluded that a “yes” vote would result in a professional services boom, while a “no” vote would release pent-up leasing demand as companies found greater certainty. It said the latter scenario now “looks even more compelling”.