New data which suggesting that Scottish commercial property returns ‘continued to push higher’ in the second quarter of 2014, has shown Simon Morris the value of the Scottish commercial market.
Simon Morris Advises UK Property Investment Funds on Where to Invest Capital
A London-based independent property expert, Simon Morris acts in an advisory capacity to UK property investment funds on how to maximise revenue from their property portfolio.
Often, this involves advising funds on where in the UK their capital would be best spent, which is why Simon Morris believes that the latest figures for the Scottish commercial market suggests it would prove extremely lucrative for UK property investment funds going forward.
The Scotland Property Quarterly Report
According to the Daily Record, a new report from property agents CBRE, suggests that total returns for commercial property north of Hadrian’s Wall “continued to push higher,” for the second quarter of 2014. Overall, property returns measured 11.8% in the 12 months to the end of June, as detailed in CBRE’s Scotland Property Quarterly report.
This meant that overall property returns for Scotland saw a 10% rise in the 12 month to the end of March. Furthermore, on a quarterly basis, whilst total property returns stood at 2.8% at the end of March, they measured 3.1% by the end of the second quarter. CBRE went on to suggest that quarterly returns have now hovered around the 3.0% mark for three quarters in a row.
Why Has Scotland’s Commercial Property Market Grown?
With second quarter gains attributed to capital growth rates of 1.6% for the period – the fourth quarter in a row of capital growth – CBRE suggested that these latest statistics mean that values have risen by 5% over the last year.
The report went into more detail on the reasons for the growth, saying that: “Whilst inward yield movement has been the key driver of this growth, Q2 has also seen the emergence of some modest rental value growth.
“All sectors saw rents increase in Q2, led by offices which experienced growth of 0.7 per cent over the three months. This means that all property ERV [estimated rental value] growth was 0.3 per cent in Q2, the highest rate of growth since 2008.”
Scottish Commercial Property Could Prove Extremely Lucrative Going Forward
In Simon Morris’ opinion, these numbers speak for themselves. On the back of a favourable climate, the Scottish commercial property market is recording growth across the board, with room to expanding the coming months. These figures suggest that the Scottish commercial market could prove extremely lucrative for UK property investment funds as we go forward.