Rural assets continue to outperform alternative assets and our survey again records a healthy investment performance on ‘All Estates’.
In the year to 5th April 2013 the average Total Return for ‘All Estates’ in Scotland for all Let Property was 10.8%, the sum of a net income return of 1.3% and capital growth of 9.5%.
However, it is the farmland that contributes the lion’s share of this performance. It recorded capital growth of 13.4% and a net income return of 1.2% giving a total return of 14.6%.
The let residential sector is currently the weakest performer on rural estates showing a similar trend to the mainstream Scottish residential markets, where values fell -4.9% in the 12 months to April 2013.
Average total return for let residential property on ‘All Estates’ was -3.8% being the sum of a net income return of 2.2% and capital growth of -6%.