Aberdeen’s commercial property market is on fire, with investment reaching a six-year high in the first half of 2024.
According to the independent consultants at Knight Frank, a whopping £181 million was invested in Aberdeen’s commercial property market between January and June. This is more than double the investment seen during the same period in 2023 and significantly higher than the average of the past five years.
Union Square Deal Drives the Surge
A large chunk of this investment, a massive £111 million, came from the sale of the Union Square shopping centre to Lone Star Real Estate Fund. This makes retail the dominant sector in Aberdeen’s commercial property market, accounting for a massive 67% of the total investment for the first half of the year.
Other Sectors Showing Promise
While retail is leading the charge, other sectors are also showing promise. Industrial property accounted for 15% of the investment, with hotels closely behind at 13%.
Aberdeen’s Investment Market Outperforms Scotland
Aberdeen’s booming property market is attracting attention beyond Scotland’s borders, with international investors accounting for a significant 62% of investment volumes. In fact, Aberdeen accounted for almost a quarter (24%) of Scotland’s total commercial property investment during the first half of 2024.
Experts See Continued Growth
Despite some uncertainty about future interest rate cuts, the experts at Knight Frank are optimistic about Aberdeen’s property market. They expect to see continued growth in the coming months, particularly in the industrials and hotels sectors.
Alasdair Steele, head of Scotland commercial at Knight Frank, says: “The sale of Union Square has definitely been a boost, but we’re also seeing a strong level of activity in other sectors. The occupier market has bounced back strongly from the pandemic, and we’re seeing more interest in properties that offer redevelopment potential or the chance to add value.”
Is This Your Chance to Invest?
With the Aberdeen property market performing so well, now could be the perfect time for investors to take a closer look. The experts at Knight Frank see a promising future for the city and believe that the market is poised for continued growth. If you’re looking for a chance to invest in a thriving market with a strong track record, Aberdeen could be the perfect place for you.