Investment in the Scottish commercial property sector has shown remarkable resilience, reaching £460 million in the third quarter of 2025. This marks an increase from the £430 million recorded in the previous quarter, as detailed in the latest Scotland Snapshot report from Colliers.
Year-to-date figures reveal that total investment in Scotland’s commercial real estate market has reached £1.4 billion, slightly surpassing the corresponding figure of £1.3 billion for 2024 and aligning with the five-year average. The data underscores the significant role that the residential and purpose-built student accommodation (PBSA) sectors play in driving investment trends in the region.
Sector Performance Overview
In the first three quarters of 2025, the residential and PBSA sectors have emerged as leaders in investment activity, accounting for an impressive 25% of overall volumes, which equates to £350 million. Following closely is the office sector, which captured 22% of the investment at £320 million, while the hotel sector attracted 21% with £300 million. Retail investment constituted 15% of market share, with industrial and senior living sectors both at 7%, amounting to £100 million each.
Key Deals and Trends
Douglas McPhail, head of Colliers Scotland, stated, “Investment activity in Scotland remains resilient, with Q3 volumes climbing above the previous quarter and year-to-date figures tracking ahead of 2024. While performance varies across sectors, the appetite for high-quality assets, particularly in residential and PBSA, continues to underpin confidence in the market.”
The largest deal in Q3 involved Watkin Jones entering a joint venture with Maslow Capital to develop a significant PBSA scheme in Glasgow, comprising 784 beds and valued at £182 million. This transaction highlights the ongoing confidence in the PBSA sector, which is becoming increasingly attractive to investors.
Sector Insights
During the third quarter, the office sector attracted £110 million across 11 transactions, with the most significant being the sale of Central Exchange for £22 million to Ediston Properties and Strathclyde Pension Fund. In the hotel sector, £70 million was invested, predominantly driven by the acquisition of the 259-bedroom ibis Edinburgh Centre South Bridge by Essendi.
Retail investment saw a drastic decline, with less than £20 million invested in Q3 compared to £170 million in the second quarter. The only notable transaction was the £11 million sale of Waterfront Retail Park in Greenock to Frasers Group. Similarly, the industrial sector experienced muted investment with £50 million recorded, although this is an improvement from £25 million in Q2, with the highest-value deal being the sale of Clyde Gateway East in Glasgow to Aberdeen Group for £10 million.
The data from Colliers not only reflects a healthy investment landscape in Scottish commercial property but also underscores the particular strength of the PBSA sector, which continues to attract investment interest and underscores the importance of high-quality student accommodation solutions in a competitive market.