Edinburgh outpacing European rivals

Published: 06 March 2019

Edinburgh’s buoyant office market has seen the Scottish capital break into the top 20 global business hubs in terms of prime office rents and rental growth, according to new research from Knight Frank.

The commercial property consultancy’s latest Global Outlook report found that Edinburgh’s estimated rental growth of 4.5% in 2018 outpaced a number of European capitals – including London, Dublin, and Madrid (all 0.0%). 

Edinburgh has fared well thanks to strong growth from the tech sector and the resilience of professional services...

Toby Withall, Office Agency Partner , Knight Frank Edinburgh

 

Knight Frank said that rental growth in Edinburgh would likely continue to be driven by high levels of demand, combined with a restricted supply of Grade A accommodation.

While city centre average annual take-up of Grade A space has traditionally been around 220,000 sq. ft., in recent years it has consistently exceeded that figure.

James Roberts, Chief Economist, Knight Frank commented: “We believe there is a compelling case for continued rental growth across the global cities. We expect these improving expectations on rental growth to give more investors the confidence to make leveraged buys, particularly given the supply problems found across global occupier markets.”

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