Upturn lifts Edinburgh into top global property index

EDINBURGH has moved back into the upper tier of a global property investment index thanks to a pick-up in international interest.

The capital, which suffered a downturn in investor activity in the run-up to last year’s independence referendum, has re-entered the top 20 in JLL’s City Investment Intensity Index for the third quarter of 2015.

The index compares the volume of direct property investment over a three-year period relative to the current economic size of a city. It provides a measure of market liquidity, as well as a useful barometer of a city’s overall “health”, according to researchers at property consultancy JLL.

Edinburgh was ranked in 19th place in the latest report, with London, Munich, Honolulu, Sydney and Oslo grabbing the top five slots, in descending order. It was ranked above cities such as Seattle, Brisbane and Washington DC.

Alasdair Humphery, lead director for JLL in Scotland, said: “We’re seeing strong global flows of investment capital and Edinburgh is benefiting. Due to a combination of political and economic factors, Edinburgh is now more visible internationally.

“Part of this recognition is due to the stability and reputational strength created by a smooth referendum vote. The capital has also worked very hard at recovering and growing its reputation for financial and business services.”

He added: “Aligned to increased visibility of Edinburgh as a potential location for investment, investors now believe the city’s occupational story of diminishing supply and decreasing vacancy rates.

“They are taking comfort from major local investment by the likes of M&G and Standard Life.”