This resurgence in activity can be attributed to investors seeking value, attracted by the generous yields on offer in a market that has found a new level of pricing.

The largest transaction to happen in Aberdeen last year was the sale of Union Square Shopping Centre to Lonestar for circa £110m. This represented almost a third of all commercial transactions and approximately 90% of retail investment in the city.

Savills notes that the office market accounted for 36% of commercial transactions, with Aberdeen being the second most active Scottish city for office investment. Volumes in this sector totalled £128m, reflecting an 80% increase on the 10 year average and a fivefold jump on the 2023 figure. Savills was involved in 75% of all office transactions in the city including three of the largest deals in the sector last year. This  included the £45m acquisition of Prime 4 for EEH Ventures Ltd, the sale of BP’s Aberdeen Headquarters to DS Properties for £16m and the sale of TotalEnergies House, Westhill for £18m. The other notable transaction was the sale of Annan House for £32m to an Israeli investor.

Mark Fleming, investment director at Savills Scotland, said: “The substantial volume of deals seen in Aberdeen in 2024 followed a period of significant falls in asset values resulting in extremely attractive yields as the market found a new level of pricing.

“In addition, we saw some return in investor confidence as inflation pressures receded, cost of debt began falling and people started to return to their offices post Covid. Looking ahead we anticipate that Aberdeen commercial real estate will remain appealing to investors in 2025 due to the attractive yields on offer.”

Overall, from a Scottish perspective, regional investment activity picked up during 2024, with over £2 billion transacted. Of this, Aberdeen witnessed the highest percentage increase year-on-year across all markets.

In line with other key regional markets, Savills figures show that over 75% of the money for office investment in Aberdeen originated from overseas investors, from countries including the US, Europe and the Middle East. The firm anticipates that this trend will continue throughout 2025.

Looking at ‘prime yields’ in Edinburgh and Glasgow, for offices these currently stand at circa 6.5% and 7.5% respectively. Whereas in Aberdeen, prime yields would equate to circa 9% plus. This would, therefore, continue to provide an opportunity for investors looking to acquire assets at discounted prices as investment market activity continues to increase across the UK.

Eilidh Levein, investment associate at Savills Scotland, added: “It has been great to see the resurgence of  interest in the Aberdeen commercial real estate market from investors.

“For example, we received around 10 bids when we set a closing date on the TotalEnergies facility at West Campus in Westhill. This just demonstrates the latent demand from investors in the city where assets are priced correctly.”

Other sectors that performed well in 2024 were industrial & logistics, with investment totalling £24.87m in Aberdeen. In line with the 10 year average, this reflects the trend across the rest of Scotland where industrial volumes have remained muted by limited access to finance in the first half of last year, caution among some buyers, and few vendors wishing to sell into a less optimal market. Despite this, notable deals included Remake’s acquisition of Hydrasun Group, Gateway Business Park for circa £14m.