St James Quarter
St James Quarter

Investors still have appetite for UK and Scottish property

According to international real estate advisor Savills, overseas investors ploughed £5.8 billion into the UK’s regional commercial property market in 2016, growing to account for almost one third (29%) of the total investment outside of London, with hot spots in Edinburgh, Manchester and Cardiff.

In 2014 and 2015, when investment volumes in the UK regions were at an all time record, overseas investors represented an 18% (£4.1bn) and 27% (£6.1bn) market share, respectively, of the total turnover.

Savills reports Middle and Far Eastern buyers were particularly active outside of London in 2016 spending £1.9 billion, an increase of 90% on their total spend in the UK regions the previous year.

The multi million pound funding of Edinburgh’s St James Quarter in the final quarter of 2016 by Dutch pension asset manager APG set the Scottish capital city at the top spot for international investment into commercial real estate outside of London (80% market share).

Nick Penny, investment director and head of Savills Scotland, comments: “Despite Brexit and the uncertainty surrounding Indyref 2, Edinburgh is a globally acknowledged capital city, a power house and a major tourist destination. This, coupled with the available discount in Edinburgh to comparative UK cities south of the border, and any further discount from the drop in Sterling, has seen overseas investors account for 80% of all property investment in Scotland last year.”