WITH the new year under way and everyone kick starting their resolutions and new fitness ambitions, it’s fantastic to see that the Scottish commercial property sector is also getting into shape.
Optimistic news is a great way to begin the new year, especially after what’s been a relatively uncertain couple of years for the economy.
With the latest analysis of data from real estate consultants Knight Frank, figures show that Scotland’s commercial property market bounced back in 2024 with a hearty boost, providing plenty of optimism for investment heading into 2025.
The findings reveal that investment in Scottish commercial property topped £2billion last year, which is a significantly higher figure than 2023 and also the sector’s estimated £1.9billion five-year average.
With the beginning of last year getting off to a slow start owing to the uncertainty typically found at the beginning of a General Election year, the market saw the light shine from June onwards, with an explosive boom triggered by a more sure-fire direction for Scotland politically, helped further by the downward pivot of interest rates.
This investment success also highlights that Scotland is firmly on the map for international business investors looking for a promising new locale for their business.
Analysis shows more than 44 per cent of all commercial property investment in Scotland last year was from overseas investors.
Making Scotland an attractive prospect for business investors, both locally and globally, has always been a step in the right direction for the country’s economic ambitions — so it’s reassuring to hear that this approach is quite literally paying off.
The term “commercial property” is extremely broad, ranging from a small retail opportunity to a large multi-faceted office space, so it’s interesting to see how this £2billion investment has been split.
While investment seemed to increase across all major commercial property types, it looks as though interest in hotels was the biggest driver, with over £488million in deals last year. Edinburgh unsurprisingly led the charge.
This final total was a colossal increase compared to the previous year, with investment rising by more than double.
This boost shows that Scotland’s strong tourism sector is making a bold return, with more and more business leaders from across the globe taking notice.
Another promising update from these findings is that investment in office space saw a significant rise to £509million, providing some recovery after a few years of decline.
At the tail end of last year, I shared my hopes for a more optimistic swing in fortunes for prime office space as it looked as though the demand was outweighing the availability in Scotland.
As more businesses are welcoming staff back into the workplace on a regular basis, the demand for quality office space is growing. Staff are also beginning to opt to work at home less, a trend that is guaranteed to continue this year.
Hopefully, investment can turn around sooner rather than later to meet this demand because, as previously mentioned, if we lack quality spaces, this will become more than just a business issue — it will be an economic nightmare for growth and job retention.
It’s not just Knight Frank who are saying 2025 is set to be the year for the commercial property market in Scotland.
Edinburgh-based Lismore Real Estate Advisors are also calling it a “year of opportunity” due to a significant number of deals already in the pipeline.
Their findings pretty much corroborate the data shared by Knight Frank, highlighting that overseas interest has increased and that the future is, at least according to the statistics, promising.
So, I hope this early health kick is one that the Scottish markets can maintain throughout the entire year.
Continued investment will not only provide a fantastic amount of new opportunities for businesses across the country, but it will also reinforce confidence in Scotland as a key destination for business investors.
Alcohol Brands’ Golden Moment
AS the trend for people taking on Dry January increases every year, and more younger people give up booze for good, it will be interesting to see how businesses adapt.
The rise of alcohol-free options – such as Scotmid’s new partnership with Aberdeenshire-based Burnside Brewery’s alcohol-free Right To Roam IPA and Wayfinder Lager – is more than just a savvy move; it’s a sign of the times.
With 20 per cent of Gen Z reportedly steering clear of alcohol altogether and even rebranding Dry January as outdated, businesses are being forced to rethink how they cater to younger audiences.
For Gen Z, sobriety is tied to values like mindfulness, wellness, and control – and smart businesses are tapping into that.
From alcohol-free craft beers to zero-proof spirits, the demand for sophisticated non-alcoholic options is booming.
Entrepreneurs have a golden opportunity here.
Scotmid’s move to expand its alcohol-free beer range is a great example of how retailers can lead the charge, meeting changing tastes while still supporting local businesses.
It’ll be interesting to see how brands step up, whether by innovating their product lines or rethinking how they market social drinking.
As Gen Z continues to shape the market, one thing’s clear: businesses that are inclusive and adaptable will be the ones worth raising a glass to – alcohol-free, of course.
It Made Me Laugh
P-P-P-Perfect Penguins
AFTERNOON tea with penguins at the Virgin Hotel? Now that’ll get people talking.
The Edinburgh venue recently hosted an event where guests could enjoy a luxurious spread while learning about these feathered friends.
Inspired by a Julia Donaldson story, Jonty Gentoo – The Adventures of a Penguin, The Little Penguins Winter Tea was held in partnership with Edinburgh Zoo.
It’s not every day you sip tea with wildlife via a live video feed, but this quirky afternoon tea was a p-p-p-perfect treat.
Combining luxury with a touch of nature is a great idea that reminds us hospitality doesn’t always have to play it safe – sometimes, it’s okay to wing it.
It Made Me Weep
Picking Up the Pieces
IT’S always tough to hear about job losses, especially in the New Year, but the closure of Angus blinds manufacturer Stevens Scotland hits hard.
After more than 25 years in business, losing 22 jobs in one go is a devastating blow for a tight-knit community.
For the workers, it’s not just a loss of income but a way of life.
Stories like this are a stark reminder of how fragile local economies can be, especially in smaller towns.
As the doors close for good, here’s hoping support comes quickly for those affected – because every job lost represents a family left picking up the pieces.
