A SCOTS city has shown a rising promise for UK real estate investment, a report has read.
The report was released by international law firm CMS and has revealed that Glasgow’s commercial real estate market has maintained a steady upward increase in its appeal to investors.
The report, aptly named Tomorrow – Real Estate Takes the Long View, focuses on the global as well as UK market, and is closing the gap against other major UK cities.
It includes a survey of UK property professionals, detailing that Manchester is the nation’s leading ‘big six’ city outside of London and an appealing real estate investment for 58% surveyants.
However, Glasgow has now appeared on the list with a 19% approval rating, behind Birmingham (35%), Bristol (35%), Edinburgh (30%) and Leeds (28%).
It is currently the only city to experience a steady upward trend as a place to invest since 2016.
The gap between Glasgow and Manchester in its appeal to investors has also significantly shrunk, from 57 percentage points in 2016 to 39 points in this latest report.
The rise in Glasgow’s appeal appears to be attributed to a number of factors, including numerous higher education centres, a number of talented individuals and a well-developed transport network.
The city has also seen the development of many ESG-friendly (Environmental, Social and Governance) commercial property sites and long-term investment from leading corporate organisations.
The CMS report also highlighted concerns from across UK real estate sector about the impact of planning on future investment.
A massive 90% of UK respondents said they believed the planning system is not working and needs investment with 93% agreeing it is under-resourced.
Similar concerns about the potential impact of planning issues on the Scottish market were also raised in the International Scotland report jointly issued earlier this year by CMS and the Fraser of Allander Institute.
Chris Rae, a Glasgow-based partner and real estate specialist at CMS, said: “Our latest global real estate report shows Glasgow is significantly narrowing the gap with Manchester and other UK regional cities as an appealing place for commercial property investment.
“Our city is often compared with Manchester, not least because of its strong transport links and top-tier talent pool.
“This ongoing rise in investment appeal suggests Glasgow is on the up with great opportunities yet to be explored in this dynamic city.”
Mark McMurray, a partner and planning specialist at CMS Scotland, said: “The resourcing issues with the planning system that are strongly voiced in our Tomorrow report are equally applicable to Scotland.
“We often hear how the lack of accessibility to over-stretched officers dealing with planning applications can result in delays to key projects.
“Investment in additional resources would make a huge difference and reduce the delays that are evidenced by planning performance statistics.
“We must also find ways to improve the clarity in the planning system, reducing the time it takes to get a decision.
“This will allow developers and investors to expedite their plans or, in the case of a rejected application, quickly move on to their next project.
“Addressing these issues could really bolster Scotland’s economy by further enhancing Glasgow’s as well as other Scottish cities’ position as a prime location for further investment.”