Edinburgh's 2017 Commercial Property Predictions

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Written By:
Alasdair Steele, Knight Frank
1 minute to read
Categories: UK

Knight Frank’s Edinburgh commercial property experts give their view on the city’s forecasted real estate sector performance in 2017.

Opportunity: Increased overseas investment

The importance of overseas buyers is increasing, with only one building over £20 million purchased by UK money in the last 12 months.

Landlords will need to ensure they take this into account when formulating their development and letting strategy.

Barrier: Limited inward yield

The current prime yield of 5.25% would suggest limited inward yield movement going forward, with

future performance emanating predominantly from rental growth. However, this yield looks cheap in comparison to other major European cities making Edinburgh an attractive proposition.

One third of Edinburgh’s office take-up is made up of tech companies. If this sector is to continue to be encouraged to grow in the capital, landlord’s need to better align themselves to flexible and collaborative working practices

Barrier: Loss of office stock

Edinburgh is losing a significant proportion of its city centre office stock to alternative uses, such as hotels, serviced apartments and residential. This trend will further restrict the choice of traditional office occupiers.

Opportunity: Spotlight on West Edinburgh

West Edinburgh will continue to become a focus for occupiers and mixed use development, such is the dearth of suitable brownfield development opportunities in the city centre and the fast improving connectivity offered out of town.

Contact us for further information on Edinburgh’s commercial property sector or to discuss your leasing or investment requirements.