CORONAVIRUS has triggered a "deeper and more rapid" crunch in the Scottish commercial property market than the 2008 recession, it is claimed.
The Scottish Property Federation (SPF) says the total value of commercial property sales dropped by 43% from the first to second quarters of the year.
The second period covers April-June, when lockdown set in.
At £285million the total value of sales completed then is down 54% on the same time last year.
Activity in Glasgow has been "heavily" affected, with sales down 86% year-on-year.
In Edinburgh, total value of sals has gone from £108m to £91m in a year.
Scotland’s two largest cities, Edinburgh and Glasgow, both saw a dramatic decrease in activity during Q2.
SPF director David Melhuish commented: “The SPF conducted a survey of commercial property owners in May that foreshadowed the extent that the industry would be effected by the pandemic.
“While reduced activity in the commercial property market was expected for this quarter, these figures indicate a much deeper and more rapid fall than we saw even at the time of the financial sector crisis in 2008-09.
“The extent of the fall in sales reveals a weakened wider economy, and consequently a reduced level of investment activity.
“The commercial property sector is facing a perfect storm of loss of income, minimal market activity and increasing liabilities in the form of empty property rates as businesses close stores or delay office moves.
“Unless we see a return to a sustainable level of business activity, the sector will struggle to produce the new buildings and places for a modern workforce, or to provide the quality property investments sought by long-term investors that provide reliable income returns for pension and life funds.”
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