This dominance was attributed to the strong economic performance of the Scottish economy, which attracted institutional investors seeking to capitalize on the growth potential. The study also revealed that the institutional investors’ investment strategy was characterized by a focus on long-term, stable returns. They were particularly interested in properties with a high degree of resilience to economic downturns, such as office buildings and retail spaces.

Read more: Ian McConnell: Nothing to raise hopes in grim latest Grangemouth revelations It said: “Both 10-year periods included major events that affected markets, including the global financial crisis, Brexit and the Covid-19 pandemic.” Knight Frank noted that, so far in 2024, international investors have accounted for 25% of investment volumes, while real estate investment trusts and private buyers have represented 31% each. However, looking back over the longer term, Knight Frank head of Scotland commercial Alasdair Steele said: “A lot has changed in the 10 years since the independence referendum – both directly and indirectly related to the vote being held.

This uncertainty was compounded by the referendum result, which was a close call, and the subsequent political and economic turmoil that followed. This uncertainty led to a significant drop in investment activity in the Scottish commercial property market. The Scottish commercial property market experienced a significant drop in investment activity following the referendum.

Knight Frank added that investment in hotels rose from 11% to 16%, “as Scotland grew in popularity as a tourist destination”. The property consultancy flagged figures from the Scottish Tourism Observatory showing the number of international tourists visiting Scotland rose from 2.3 million in 2013 to four million during 2023. Accountancy firm EY’s annual Scotland attractiveness survey published in July showed Scotland won a record number of foreign direct investment projects in 2023. And the nation last year retained its position as second only to London among UK locations in attracting new inward investment projects, according to the EY survey.

Scotland won 142 FDI projects last year, a 12.7% rise from the previous record annual figure of 126 achieved in 2022. This was the fifth straight year of increase, and EY noted Scotland was the only part of the UK to achieve this. Read more: Scottish income tax burden for higher earners ‘under review’ The increase in the number of inward investment projects won by Scotland in 2023 was more than twice as sharp as the 6% rise seen across the UK as a whole. Scotland’s real estate sector bucked the trend of decline elsewhere in the UK in the first half of 2024 in terms of attracting investment, research published last month by global property adviser JLL revealed.

JLL highlighted a positive outlook in Scotland for investment in this sector, taking in commercial and industrial property and residential development, during the rest of this year and into 2025. Investment in Scotland’s real estate sector increased “considerably” in the first six months of the year, in contrast to a sharp fall across the rest of the UK, the JLL research revealed. JLL declared: “Scotland bucked the trend seen elsewhere across the UK.”