Investor Confidence in Glasgow’s City Centre Property Market Grows, According to Lismore Real Estate Advisors
Investor confidence in Glasgow’s city centre property market is on the rise, according to a recent report by Lismore Real Estate Advisors. The research indicates that 89% of investors are anticipating increased investment opportunities in the coming year, with property companies being the most optimistic.
The report highlights Glasgow’s attractiveness due to its favorable yield gap compared to other regional cities and robust fundamentals in various sectors. The under supply of Purpose-Built Student Accommodation (PBSA), a strong prime retail market, and low availability of Grade A office space are all factors driving investor interest.
Investors are particularly favoring the Living and Industrial sectors, each accounting for 32% of respondents. This reflects a national appetite for these sectors due to positive supply/demand dynamics and strong forecast rental growth. The retail and office sectors also garner interest, with the micro location being cited as crucial to investor appetite.
However, despite the positive sentiment, only 21% of investors expressed confidence in the public sector’s support. Challenges such as rent control legislation hindering Glasgow City Council’s revitalization ambitions were cited as potential obstacles. Nevertheless, the Glasgow City Region deal is set to deliver £1.1 billion in public sector investment for major infrastructure and regeneration projects in the coming years.
Stuart Orr, senior development manager at Landsec, highlighted Glasgow’s allure for redevelopment and investment, emphasizing the city’s robust infrastructure and economic strength. He noted challenges such as construction costs and financing hurdles but highlighted Glasgow’s resilience and potential for sustainable mixed-use developments.
Simon Cusiter, director of Lismore, emphasized the importance of aligning public and private sectors to stimulate development and regeneration in Glasgow’s city center. He stressed the need for collaboration to unlock the city’s full potential and support its growth.
Overall, investor confidence in Glasgow’s city center property market is strong, with optimism surrounding future investment opportunities in the thriving Scottish city.
