Investment into Edinburgh’s office market last year reached heights not seen since 2006 as UK political uncertainty failed to deter interest from overseas investors, according to a new report.

Research from international real estate advisor Savills has found that £426 million of transactions were completed in the capital during 2016, 73 per cent above the 10 year annual average of £246m.

Overseas buyers ploughed £310m into the city’s office market in 2016 representing 73 per cent of the total turnover and was 170 per cent above the 10 year average of £115m – the highest share ever recorded.

Savills notes that this international appetite has been accentuated by a discount from the sterling devaluation. German based funds were particularly active, with Deka Immobilien and TRUIVA acquiring Atria (£105m) and Waverley Gate (£63m) respectively.

Rod Leslie, associate director in the investment team at Savills Scotland, said: “Despite a turbulent political year Edinburgh’s commercial property market has attracted the greatest volume of inward investment in a decade. Following the UK’s vote to leave the EU there was a brief pause as investors took stock before returning to the market, searching for prime, well let assets on a long leases as part of a defensive investment strategy.”

Savills said the outlook for 2017 is promising with deals such as Aberdeen Asset Management selling Exchange Place 1, 2 & 3 to overseas investors GLL Real Estate and HSBC Private Bank for a combined £80m reflecting the relatively bullish sentiment in the market. The firm said Edinburgh remains attractively priced relative to comparable regional cities, with prime yields currently standing at 5.5 per cent, as investors continue to look to the UK regions for value.

Mike Barnes, Scottish analyst in the research team at Savills, added: “Generally we see the key regional cities including Edinburgh as potentially more defensive to Brexit than London. Availability is low, particularly of refurbished space, and demand is likely to be supported by continuing northshoring from London. We expect that the pound will remain comparatively weak throughout and after the Brexit negotiation process and this, combined with the income security that the UK lease offers, will stimulate a steady rise in non-domestic interest in commercial property in the UK, as we’ve already seen in Edinburgh.”