Commercial property investment in Glasgow totalled almost £5.3 billion over the past decade, new analysis shows.
Property adviser CBRE said the figure placed the city just ahead of Edinburgh in its ranking of 12 “core cities” outside London, with investment in Scotland’s capital standing at £4.9bn between 2006 and 2015.
In total, the regions outside London and the south-east of England account for almost 60 per cent of UK commercial real estate transactions, the firm said.
It added: “Investors have diversified their property holdings as part of the recent economic recovery with emerging investment sectors such as healthcare and student housing increasing their share of the market. Prior to the financial crisis, these assets accounted for 3 per cent of investment; this has trebled to around 10 per cent of total investment volumes today.”
Although Aberdeen ranked in seventh place in CBRE’s league table, with commercial property investment of nearly £2.7bn over the past decade, the Granite City came out top in terms of commercial property spending per head of population.
So-called “investment intensity” in Europe’s oil and gas capital came in at £11,788, ahead of second-placed Edinburgh, where the figure was £10,027. Despite leading both cities in overall spending, Glasgow’s larger population meant investment per head lagged behind at £4,990.
Between 2006 and 2015, total investment across the 12 cities covered by CBRE’s report was £44.4bn – Manchester was ranked first with a figure of £8.2bn, followed by Birmingham at almost £6.6bn.
Miles Gibson, head of UK research at CBRE, said: “The UK’s core cities face an unprecedented opportunity. Whatever the relative position of individual cities, the ongoing economic recovery provides an opportunity for them all to maximise the hand that they have been dealt and, in some cases, the legacy they have to deal with.
“Volumes of international investment into the UK are now so significant that even London is struggling to absorb it all. The UK’s core cities have a unique chance to capitalise on the world’s current desire to have exposure to Britain and its property market. It is crucial for the continued success of the UK as a whole that they take it.”