Commercial Finance Specialists

Scottish commercial property will see strong rental growth in 2010 due to a lack of available stock, it is claimed.

Property investment firms investing in commercial development opportunities in Edinburgh will see strong rental returns in 2010, it is claimed.

According to Estate Agent DTZ, rental values will be driven up by the lack of new buildings in the Scottish capital, the Scotsman reports.

The city is one of only five in the UK that the agent considers a good property investment opportunity, the others being Newcastle, Cardiff, London and Nottingham.

DTZ claims that the prime commercial property market in Scotland has seen a "vigorous recovery" with transactions of more than £1 billion.

Alan Macbeth, the firm's investment director told the newspaper: "We believe that Edinburgh office market rents will recover fairly strongly in the near term.

"[This is due to] the low level of quality central business district stock overhanging the market, the attraction of Edinburgh as a business location and zero development in the pipeline."

These comments back claims made by rival agent CB Richard Ellis, who suggested last month that Scottish commercial property "still provides good security".

Posted by Lisa Fear.