Many national and foreign investors are avoiding Scotland's commercial property market, following uncertainty about the nation's constitutional future, according to a leading industry figure.
Head of national retail services at global property firm Cushman & Wakefield Stuart Moncur has stated that the vote on Scotland's independence is causing problems for the sector because there is uncertainty about what a 'yes' result would mean for property owners. As the referendum is not taking place until September 18th 2014, there is still 16 months for even more confusion to settle among investors.
According to the Herald Scotland, Mr Moncur said: "In a Scottish context, the uncertainty and the big elephant in the corner is the referendum, and that is affecting inward investment across the entire economy right now. Everyone has their views on whether it should be yes or no or what it will be, but until that uncertainty is gone you are still going to see a little bit of indecision from investors, occupiers, employers in the Scottish economy. We have a lot of foreign investor clients who will not invest in Scotland right now because of the uncertainty."
However Mr Moncur did add that investors can still use these conditions to their advantage. With there now being less competition in the market, prices are still relatively low and investors have their fair share of supply to choose from, especially in cities such as Glasgow and Aberdeen. If they make an investment now, they may see positive yields over the next few years.
The wider region has also seen a recent boost in retail sales, with the number of cases of high street chains going out of business falling. With a rise in activity, more consumers are willing to delve into their wallets and it is this steady flow of income that may drive economic recovery in the market.