Scottish independence: Investment remains strong despite looming referendum, says report

Despite concerns that the looming independence referendum has raised about Scotland's future, investment in the country remains strong.

 

A report released by global property advisers Colliers International indicates that Scotland is actually receiving an increasing proportion of the UK's total investment. 

 

Called “Scottish Referendum: A property investor perspective”, It claims that rather than having stopped the market, the uncertainty caused by the referendum has merely slowed down what has the potential to turn out to be a very strong year. 

 

Tom Johnston, joint head of Colliers International, said, “As the referendum draws near some investors have taken the view that it won’t hurt to wait… I suspect that when the dust settles on September 19, the market will accelerate.”

 

Scotland's share of UK transactions in the third quarter looks set to reach 4.5 per cent, which the report attributes largely to Aberdeen's strong energy economy; in the last three months, Aberdeen has accounted for approximately one in three Scottish transactions. 

 

Scottish citizens will vote on whether they want Scotland to remain part of the UK on 18 September. Collier's report concluded that while a 'Yes' vote would result in a professional services boom, a 'No' vote would release 'pent-up' leasing demand as companies found greater certainty.

 

"The reality of a ‘Yes’ vote would, undoubtedly, lead to a new period of serious reflection. In that period, we are likely to see a surge in demand for professional services firms, both in Edinburgh and London, as companies seek advisory services," said Johnston.

 

"This is likely to be reflected in occupier market activity in Scotland, particularly in Edinburgh. Benefiting from a win-win position, the city is likely to see an upturn in professional services organisations, staffing up to supply advisory services to government and companies, and, in the event of a 'No' vote, companies will be taking on new space as uncertainty is removed."