As reported last year, Savills is continuing to see signs of improvement in the development land market. There are increasing numbers of bidding parties for sites in prime areas which has provided competitive closing dates.

In the last year, improved funding conditions has allowed a greater number of developers to enter the development market. An example of this is the return of more smaller to medium sized housebuilders to the market since the economic downturn.

The Government’s recent commitment to investment in affordable housing in Scotland has increased the interest in market locations which may not be as attractive for private for sale development. This investment is likely to see sites which have lain vacant for several years regenerated.

Victorian City Suburbia

Following a very active reorganisation of public sector assets, there has been a slow-down of sites of significant scale being brought to the market in 2016. In the West End of the city, the University of Glasgow is set to appoint a lead strategic advisor for their property portfolio, which may create some exciting new opportunities for the development market as they look to redevelop their campus. This will also have a positive implications for the wider West End market.

Established Suburbia

As the market remains strong, these established communities are continuing to experience an increase in land values and competition for sites due to the strength of the established local sales markets.

Whilst many of these locations are experiencing a strong development market, sites which are constrained technically, and which require significant up front money to be expended prior to development commencing are still lying undeveloped.

New Regeneration Neighbourhoods

Many of Glasgow’s regeneration areas are re-establishing the development market and are becoming attractive communities in which people want to live, for example Pacific Quay, Tradeston and Oatlands.