Investment into Scottish commercial property has increased to £2.2bn in 2021, according to research from Colliers.
The figure represents an increase of almost 50% on the £1.4bn recorded in 2020 and is above the 10-year average of £2bn.
Retail, which experienced a bounce back in investment saw volumes reach £530m, a three-year high.
There were particularly high levels of activity in the retail warehouse sector which reached £300m, 75% above the 10-year average.
Shopping centre investment remained almost 40% below the 10-year average it did reach a five year high of £160m – the last four years recorded volumes of below £50m.
The office investment market reached £640m in 2021, up on the £380m recorded in 2020 but just short of the 10-year average of £680m.
Cross-border capital accounted for around 45% of all office investment by value last year, notes Colliers.
The Colliers Snapshot shows that around £340m was transacted in the industrial sector in 2021, up from the £220m in 2020 and almost 50% above the 10-year average of £230m.
In the mixed use and hotels sector the combined investment total hit £760m in 2021, 50% above the 10-year average for £510m. Interest in hotels remained strong as did residential investment: in quarter four Vita Group agreed a £47m forward funding of 60 build to rent units, 20 affordable apartments and 205 managed student homes on Edinburgh’s Iona Street.
Elliot Cassels also in the national capital markets team at Colliers Scotland, said: “Industrial and distribution remains the best performing sector in the Scottish property market and the rest of the UK. With the rising cost of new builds and strong evidence of rental growth, there has been an overall structural change and a high demand for warehousing.
"The rise in e-commerce and the effects of COVID-19 has accelerated this change and has resulted in positive investor demand from both domestic and overseas capital. However, within the Scottish market there has been limited prime offerings and the market has been starved of product, with most prime transactions occurring south of the border.“
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