Mixed signals in Scottish commercial property - commercial mortgages

30 March 2007

The commercial property markets in two of Scotland''s major cities are displaying mixed signals in terms of performance and potential growth, with Glasgow showing a more positive outlook than Edinburgh in recent times.

Figures suggest that Glasgow is outperforming Edinburgh with strong demand for commercial property contributing to an increase in office rents of almost 20 per cent in the past year, according to research from GVA Grimley.

This puts Glasgow second only to London in the UK league table for office rents, making the city a good prospect for investors looking to take out commercial mortgages in Scotland.

Meanwhile Edinburgh has seen a slump in office take-up during the past 12 months, with recent reports from Jones Lang LaSalle showing a 12 per cent decline in last year. This lack of demand could deter investors with commercial mortgages on Scottish properties.

Nonetheless, experts believe that demand for higher grade offices in Edinburgh will lead to a boost in take-up, according to the Scotsman.