Commercial Property Sales fell sharply in the Scottish market in the first quarter of 2019, according to recent analysis from the real estate organisation Scottish Property Federation (SPF).
The total value of property sales dropped by 21 per cent, compared to the same period last year. The drop was mainly driven by fewer high-value transactions, with the figure of £5 million-plus sales down by nearly one-third from the first quarter in 2018, the analysis reported.
Overall, the value of commercial property sales in Scotland in the first quarter totalled £763m, marking a year-on-year decline of £203m. For the last four quarters, £3.03bn was the overriding value in sales, which is the lowest rolling annual total since the second quarter of 2014, the recent SPF analysis revealed.
Regional sharp decline
Glasgow experienced a decrease in its commercial property sales value by £26m, marking a 15 per cent drop from the previous quarter. However, the figures rose by £49m compared to the first quarter in 2018. Notably, Glasgow accounted for 19 per cent of the overall value of Scotland’s commercial property sales from January to March, totalling £171m in the market.
Edinburgh showed higher figures in sales than the same quarter last year, with the capital recording a total value of £264m in commercial property sales, which accounted for 35 per cent of the Scottish property market, according to the recent analysis.
Aberdeen also saw a major rise in sales, with an increase from £14m on the previous quarter to £41m. However, year-on-year, the total value of Aberdeen’s commercial property sales fell drastically by £125m.
‘Subdued start to 2019’
David Melhuish, director of the Scottish Property Federation, commented: “The sales report for Q1 2019 shows a clear fall in total value of commercial property sales compared to the previous year. This aligns with investment data suggesting a subdued start to 2019 for the Scottish commercial property sector.”
Mr Melhuish added: “The sales report for Q1 2019 shows a clear fall in total value of commercial property sales compared to the previous year. This aligns with investment data suggesting a subdued start to 2019 for [the market].”
Mr Melhuish concluded that for investors, Edinburgh remains a hotspot, while more broadly, low growth and lack of certainty in the economy is weighing down on activity.