Dundee has been ranked ninth out of a list of ten regional locations for property investment.
Research amongst British property investors by the law firm Morton Fraser’s commercial real estate division ranks a list of ten British cities according to their attractiveness as investment options.
Edinburgh (+24), Bristol (+21) and Manchester (+4) are the most appealing destinations, with more investors finding them attractive propositions than those who did not.
Dundee did not appeal to the majority of investors, with a net score of minus 33, with more rating the city an unattractive than an appealing investment prospect.
Aberdeen is rated the least attractive location for property investors, with a score of minus 40.
This comes after its energy-dependent economy was hit by falling oil prices, leading to thousands of job losses and the contraction of the oil and gas industry.
David Stewart, commercial real estate partner at Morton Fraser, said: “The top cities in our league table have demonstrated real economic resilience since the recession.
Their success in protecting inward investment, attracting business and talent, and developing infrastructure means property investors can more easily envisage long-term gains.
“Investors will hope that the waterfront development in Dundee, which is still in its early stages, will help to transform the local economy, but for now, many are keeping a watching brief.
“Regional commercial property investment has a lower upfront capital cost but can often return higher yields and longer tenant leases, improving income security.
“However, those benefits are outweighed by perceived economic risks in most regional cities by potential investors.”
He added: “Experience shows that a good property investment can withstand economic fluctuations and the right opportunities can be found in all these locations.”
Property consultants Ryden recently revealed Dundee was facing major shortages of serviceable industrial property and lacked Grade A office accommodation.
