SCOTTISH Property Federation (SPF) analysis of commercial property sales during the first quarter of 2019 has shown that total the value of sales in Scotland fell by 21% compared to the same period in 2018.
The drop in value was largely driven by fewer high-value transactions for this period, with the number of more than £5m sales down by nearly one-third compared to Q1 2018.
The analysis shows a 21 per cent (£203m) year-on-year decrease in sales by value in Q1 2019, with the value of commercial property sales in the quarter totalling £763m.
David Melhuish, Director of the SPF, said: “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.
“However, the sales data does underline the current strength of Edinburgh’s commercial property market, with the Capital accounting for 35% of the Scottish market by value. The investment data also highlights the rise in investor appetite for alternative property asset classes, such as hotels and build-to-rent.”
Edinburgh broke from the national trend in Q1 2019, with higher values than in 2018, recording a total value of £264m in commercial property sales, accounting for 35% of the total value of commercial property sales in Scotland.
Aberdeen also saw commercial property sales recover against the previous quarter, with an increase from £14m to £41m.
However, year-on-year, the total value of Aberdeen’s sales fell sharply by £125m.
Glasgow experienced a decrease in the total value of sales by £26m (15%) from the previous quarter but rose by £49m on Q1 2018.
Some 19% of the total value of Scotland’s commercial property sales in Q1 2019 occurred in Glasgow, totalling £171m.
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