Scotland’s property market sees ‘bit more stability’ but there’s an east/west divide in one key sector
“Demand is still there, but what’s really shaping the market now is the lack of new, high-quality space coming through the pipeline” – Mark Robertson, Ryden
Scotland’s commercial property markets are finding “a bit more stability” while tightening supply across several sectors is pushing rental values upward, a new report has found.
Ryden’s latest Scottish Property Review points to signs of stabilisation as inflation and interest rate pressures ease - a situation that could change in the coming months if the conflict in the Middle East persists.
The property consultancy’s annual report finds that while many occupiers remain cautious due to operating costs, a shortage of modern buildings and limited development activity is tightening supply across a number of sectors, placing upward pressure on rental values.
Across Scotland’s largest cities, demand has been strongest for high-quality buildings with strong environmental credentials and modern workplace amenities.
In Glasgow, city centre office take-up topped 452,000 square feet in 2025, slightly down on the previous year but 3 per cent above the five-year average. A new headline rent of £41.50 per sq ft was achieved in Glasgow’s city centre. A shortage of the highest quality Grade A offices is expected to drive further rental growth and potentially trigger new speculative development announcements, Ryden noted.
Edinburgh’s office market, by contrast, experienced one of its toughest years on record, with take-up down 30 per cent year-on-year amid economic uncertainty and a shortage of suitable Grade A space. With limited availability, many businesses are said to be opting to remain in their current premises, adopting a “stay vs go” approach to relocation decisions.
Industrial and logistics property continues to be one of the strongest performing sectors. Demand from logistics operators, manufacturers, trade counters and “last-mile” distribution businesses remains consistently high, although the market continues to face a “chronic” shortage of modern industrial buildings.
The report also highlights shifting dynamics across Scotland’s residential investment markets.
Purpose-built student accommodation (PBSA) has slowed due to weaker demand and rising development costs, although Glasgow and Edinburgh remain relatively resilient markets. However, renewed confidence is emerging in the build to rent (BTR) sector following the Scottish government’s proposals to exempt the sector from rent control measures.
Mark Robertson, research partner at Ryden, said: “Scotland’s property markets are beginning to find a bit more stability. Demand is still there, but what’s really shaping the market now is the lack of new, high-quality space coming through the pipeline.
“In Glasgow and Edinburgh in particular, the shortages of Grade A offices are already pushing rents higher and will likely encourage the next wave of development. Meanwhile the industrial sector continues to perform strongly, simply because there isn’t enough modern space to meet occupier demand.
“As policy around residential investment becomes clearer, we should start to see confidence returning across several parts of that market.”
Meanwhile, planning and development consultancy Lichfields has relocated its Edinburgh team to larger premises as the business continues to grow its presence north of the Border.
Now located at Caledonian Exchange, the new office is 1,800 sq ft, more than 50 per cent larger than the firm’s previous base.
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