New data suggests that investment levels in Scottish commercial property rose to a record high in 2014; a development Simon Morris believes could prove significant for UK property investment funds.
Property market grows in 2014
Simon Morris is a London-based property consultant. In this capacity Simon employs his industry expertise to show UK property investment funds how to maximise revenue on their property portfolios.
Whilst reviewing UK property investment in 2014 recently, Simon noted that last year was one which boosted growth across the entire national property market. New data has shown that this was the case for the Scottish commercial property sector in 2014.
Investment in Scottish commercial property increases 82%
According to The Scotsman, a new report from property consultancy JLL shows that investment in Scottish commercial property surged 82% over the course of 2014. Investments totalled £3.2 billion. Meanwhile statistics go on to show that with 18% of all transactions, the UK is the second largest commercial property sector on the planet.
Explaining the record growth, JLL’s lead director for Scotland, Alasdair Humphery said: “The fundamentals of the Scottish economy, including strong GDP growth and low unemployment, all pointed to a compelling economic performance which would have resonated positively with investors looking for performance.”
“UK investors are more open to risk.”
Notably this rise means that Scotland is now the second-largest region for property investment outside of London; with £5.7 billion in transaction volumes, the South-East was the best performing region. Meanwhile transactions in the UK capital measured £27.5 billion over 2014.
Humphery went on to explain: “We’ve noticed that UK investors are more open to risk and, as a result, increasingly looking beyond London to find better returns in the stronger UK regional cities. This has certainly contributed to the perception that Scottish commercial property investment offers a good risk/reward in a continuing uncertain global economy.”
Tread with caution
Therefore this data suggests that Scottish commercial property could prove a lucrative opportunity for UK property investment funds in 2015. Yet Simon Morris would advise that you tread with caution before you invest. where to purchase research papers