Colliers International gives post-referendum property insight

Walter Boettcher, director of research and forecasting with Colliers International, has made the following comment on the Scottish Independence Referendum result:

“Irrespective of personal views and sentiments, it is certain that uncertainty has been lifted for businesses on both sides of the border.

“While the ‘No’ vote suggests that little has changed, in reality we may be seeing the beginnings of a fundamental shift UK-wide between Local Governments and Central Government. The referendum has highlighted how a new balance of local and central powers and decision making must evolve to accommodate local aspirations and perceptions of economic opportunity. Regions must have the power to determine their own economic strategies and exploit what they see as their own competitive advantages.

“Scotland will remain part of the United Kingdom, but it will be a Scotland that will join in unison with other UK regions who have also been seeking greater self-determination in regional policy making.“

“From a narrow business perspective, economic and financial confidence has perhaps regained its balance and this will drive higher levels of activity as pent up demand and projects shelved temporarily will be dusted off and pushed through. Certainly property sector leasing and investment transactions both north and south of the border will see a decisive boost.

“From a broader strategic business perspective, given international appetite for infrastructural development by sovereign wealth funds in a very low interest rate environment, the opportunity for commercial real estate investment and development is staggering and may sustain activity levels well beyond the normal limits of traditional property cycles.”