It’s hard to believe, but we’re now a week into October. For some, this spells Halloween followed quickly by Christmas, however for business owners and entrepreneurs like me, it’s the final quarter of the year, which is all too important.
Within some sectors, this time of year can be make or break. For hospitality, it should be the most hectic, allowing businesses to profit on the festive season, whereas the residential property industry will start to slow down as prospective buyers will likely postpone buying a new home as part of their New Year resolutions.
As a property investor, I’m always interested in hearing about the commercial market in Scotland, so I was keen to read the latest on how the industry is performing and any predictions for this last quarter.
According to research from Knight Frank, as we enter the final quarter of 2024, the Scottish commercial property market is experiencing a resurgence that bodes well for those involved within the sector as well as the broader economy.
Investment in this sector has surged compared to the first half of the year, reaching a total of over £1.21 billion in the first nine months.
This significant uptick can be attributed to several factors, including lower interest rates and increased political stability following the recent election. The positive outlook is further bolstered by predictions of a busy end-of-year period for the industry, which is great to see.
One of the most encouraging developments is the renewed interest from international investors in the Scottish commercial property market. Several large deals are expected to close in the fourth quarter, signalling a return to pre-pandemic levels of foreign investment.
This is obviously a significant boost for the Scottish economy, as it can drive long-term growth and create jobs.
The retail and hospitality sectors are also particularly well-positioned to benefit from the current market conditions. Investment in these areas has been particularly strong, with hotel investment reaching a five-year high for the first three quarters of 2024.
This growth can be attributed to the increasing popularity of Scotland as a tourist destination and the development of exciting new hospitality concepts. Recent openings such as Resident Hotels in Edinburgh and House of Gods in Glasgow have helped to revitalise the Scottish hospitality scene.
The commercial property sector plays a crucial role in the Scottish economy. It provides employment opportunities, generates revenue for local authorities, and supports businesses of all sizes. By attracting investment and driving development, the commercial property market can help to create a more vibrant and prosperous Scotland.
As for businesses operating in the commercial property sector, I believe now is a good time to review their performance over the past year, identify areas for improvement and look to capitalise on the positive market conditions to achieve their goals.
For those within the sector looking to enhance their business performance, consider aligning your business plan with current market trends. Additionally, be open to exploring new opportunities for growth, such as expanding into different sectors or regions.
Investing in improving your property’s value and functionality is another important strategy. By making the necessary upgrades, you can attract better tenants and increase your property’s overall profitability.
Finally, building strong relationships with tenants, investors, and other stakeholders in the commercial property market is essential for long-term success. I firmly believe that by fostering positive relationships, you can create a network of support and access valuable resources, a tactic that has often stood me in good stead throughout my career.
So, as we look ahead to the remainder of 2024, the outlook for Scottish commercial property remains optimistic. With continued investment and a strong economic environment, we can expect further growth and prosperity in this vital sector – a positive trend in which I hope continues.
By capitalising on the current market conditions and implementing sound business strategies, businesses can position themselves for success in the years to come.
The price of underfunded talent
Scotland’s universities are facing a serious funding crunch, and it’s time we start paying attention.
The Herald recently uncovered that the Scottish Government is only covering about 58 per cent of the actual costs to teach students, with some subjects like social sciences and business barely scraping 50 per cent. Even the sciences, which receives the most funding, only hit 86 per cent of their full costs.
Let’s be real here: Scotland’s got plenty to brag about—our renewables, our whisky, and, most importantly, our world-famous education system. Our universities have been producing top talent and driving innovation for years, but this funding gap is putting all that at risk.
The reality is universities are being forced to rely on international student fees just to make ends meet. That’s a dangerous game to play especially for universities who don’t focus on international recruitment. We can’t keep expecting universities to cross-subsidise teaching costs this way.
If Scotland wants to keep its reputation as a global leader in education and innovation, this funding issue needs to be resolved and fast. Not only does it affect the economy and our industries, but the nation’s future also depends on it.
The conversation shouldn’t be as simple as fee versus free, but the Scottish Government and the Scottish Funding Council need to be serious about how we fund our young people’s future as the problem isn’t simply going to go away.
It Made Me Weep
Peak fare pain returns
Bad news – peak fares have returned to Scotrail.
The hopeful pilot scheme needed passenger numbers to increase by at least 10 per cent to make the scheme viable, but unfortunately fell short.
So, for many commuters, this means tickets are set to rise again, with an anytime return ticket between Glasgow and Edinburgh now £31.40 instead of the reduced £16.20.
We’re told that trains are the part of the solution to our car-centric transport system, however between these pricey fares and the ongoing spats with the unions that resulted in a reduced summer timetable – the Scottish Government aren’t helping to make train travel an appealing option.
Quite simply, this tax on workers is not the way forward.
It Made Me Laugh
Price check panic
Labour MSPs are receiving a hard time for a leaked briefing document which includes a list of everyday supermarket product prices, so they don’t embarrass themselves in interviews.
The 29-page briefing pack covers much more, but accusations that MSPs are ‘out of touch’ when it comes to everyday life have come thick and fast.
How do people think politicians and public representatives prepare for interviews? We all prepare, whether that be for a new job or a grilling on the news.
As funny as it is to see people caught out for not knowing the price of milk, in my mind remembering facts and figures in advance of any interview is just part of your homework. Job hopefuls take note!
