‘Worst year since 2001’ for Scots property deals

By ERIKKA ASKELAND
Published on 22/02/2013 00:00

SCOTTISH property investors suffered a torrid year in 2012 as the value of transactions hit rock bottom, according to a report published yesterday.

Last year was the weakest since 2001 in terms of investment transactions, with the total value of deals north of the Border reaching just £1 billion, down 15 per cent year-on-year, according to property agency CBRE.

The agency said that office transaction values reached £426m in Scotland, representing 42 per cent of all investment deals in 2012, compared to the five-year average of 36 per cent.

At just £190m, retail transactions fell by two-thirds over the course of the year and represented just 19 per cent of all purchases in 2012, compared to the five-year average of 37 per cent, the agency added.

Scotland’s total investment figures were dragged down by a poor performance during the closing months of the year, when the value of property transactions fell by 35 per cent to £212 million.

Aileen Knox, senior director at CBRE Scotland, said: “Despite the report revealing some negative figures for the final quarter of 2012, Scottish property did actually perform well compared with its UK counterparts.

“Looking ahead to 2013 it is expected that the market will not change dramatically and that conditions will be similar to that of 2012.”

A separate report from CBRE on Monday had shown a glimmer of hope for Scotland’s ailing property market, with the overall take-up of office space via lettings and sales rising last year when compared with 2011.

Aberdeen’s booming oil sector and the strongest take-up of space in Edinburgh in eight years triggered a bright start to 2012, although the second half of the year was more subdued.