The value available in Aberdeen’s commercial property market has seen French investors acquire more than £100 million of assets in the city since the beginning of 2025, according to new analysis from Knight Frank.
Research from the independent commercial property consultancy found that recent deals meant French buyers have now purchased £100.6 million of office buildings, hotels, industrial units, and other commercial property assets in the Granite City in the past 18 months.
French buyers have also been behind some of the biggest deals in Aberdeen in the last couple of years. Among them are the sale of Helmerich & Payne’s – formerly KCA Deutag – Aberdeen headquarters, Alderan’s £28.5 million purchase of Total E&P’s site on Moss Road, and the Travelodge Aberdeen Central on Bridge Street.
The majority of investment in the city from French buyers is accounted for by open-ended property investment funds known as Société Civile de Placement Immobiliers (SCPIs). They have been investing heavily in Aberdeen and Aberdeenshire since the end of the Covid-19 pandemic, with their purchases in the past 18 months including the 3T Survivex facility in Dyce.
Earlier this year Knight Frank research found that French investors were one of the most active international buyers in the Scottish commercial property market, accounting for £450 million of investment since 2024.
Douglas Binnie, capital markets partner at Knight Frank, said: “French investors have been very active in Scotland, and particularly Aberdeen. On the relatively rare occasions where they haven’t been successful in acquiring an asset in the city, they have usually been among the underbidders.
“SCPIs have been involved in a number of deals in Aberdeen – particularly for the some of the city’s larger assets that have traded hands in recent years. These buyers tend to favour cleaner properties, with minimal asset management requirements, which can provide a return of at least 7%, which is achievable in Aberdeen on assets that meet their preferred criteria.”
Matt Park, partner at Knight Frank Aberdeen, added: “A big part of the attraction is the value on offer in Aberdeen, with yields higher than the UK average and even other parts of Scotland. Buyer and seller expectations are comparatively aligned in the Granite City, which is making deals quicker to reach, and buyers are able to secure quality assets on double-digit returns in some cases.
“At the same time, after a few subdued years the occupier market has started to show signs of stability. Aberdeen had its best quarter for take-up since 2019 in the second quarter of this year, and a higher oil price and potentially more supportive policy from government should help give confidence to the energy sector which still accounts for the vast majority of activity in the city.”