£3.6bn spent on Scottish commercial property market - commercial mortgages

21 March 2007

Scotland''s commercial property market saw billions of pounds worth of activity last year, with record amounts of money having changed hands during 2006.

Figures from Lambert Smith Hampton (LSH) reveal that £3.6 billion was spent in the Scottish commercial property market as investors continued to look towards commercial opportunities.

These findings also suggest an increase in commercial mortgages activity, as investors make effort to secure lucrative commercial properties. According to LSH overseas and private investors were the most active in 2006, having spent £282 million and £171 million respectively.

Overall, commercial property in the retail sector saw the biggest level of investment followed by offices. Despite a strong 2006 this year has seen a slow start to commercial property investment but Bill Binnie of LSH argues that this could change in the future.

"Despite considerable uncertainty about how interest rates may change, demand for property still exists and investors are still keen to buy if the price is right," he told the Scotsman.

Recent reports from CB Richard Ellis have suggested that UK commercial property investors are the most active in Europe.