Latest Trends could boost mortgage market in Scotland

30 November 2013

Banking

There could soon be an increase in demand for business mortgages in Scotland, in response to some positive trends in the country.

Real estate consultancy CBRE said the underlying strength of the local economy has supported further growth in commercial property investment returns.

During the third quarter of 2013, total returns across all property sectors were 2.1 per cent, up from 1.5 per cent in Q2.

The trend was driven by capital growth across the office, industrial and retail markets, which delivered returns of 2.7 per cent, 2.5 per cent and 1.8 per cent respectively.

Investors and developers could benefit from turning their focus to Edinburgh, which is experiencing its strongest year for almost a decade in terms of office take-up.

Aileen Knox, senior director of CBRE in Scotland, said there are clear signs of recovery, but it is a “slow process”.

She added: “While Scotland still underperforms when pitted against the UK as a whole, outside London and the south-eastern area of England Scotland has actually seen some of the highest returns.”