The performance of Scottish rural assets

Rural assets in Scotland continue to outperform alternative assets with farmland contributing significantly to this performance.

23 January 2014, Words by Kenneth Munn

 

Rural assets continue to outperform alternative assets and our survey again records a healthy investment performance on ‘All Estates’.

In the year to 5th April 2013 the average Total Return for ‘All Estates’ in Scotland for all Let Property was 10.8%, the sum of a net income return of 1.3% and capital growth of 9.5%.

However, it is the farmland that contributes the lion’s share of this performance. It recorded capital growth of 13.4% and a net income return of 1.2% giving a total return of 14.6%.

The let residential sector is currently the weakest performer on rural estates showing a similar trend to the mainstream Scottish residential markets, where values fell -4.9% in the 12 months to April 2013.

Average total return for let residential property on ‘All Estates’ was -3.8% being the sum of a net income return of 2.2% and capital growth of -6%.

Graph 7

 

 
 

Key Contacts

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

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