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Property market outlook is positive for next year

The Scottish real estate market is showing signs of resurgence after law firm Dundas & Wilson recorded £1 billion in deals for 2013.

The property slump since 2007 has been felt in a range of associated sectors, including in banking and the legal sector.

But with the real estate market benefiting from signs of some recovery in the economy, Dundas & Wilson predicts that 2014 will be even stronger than this year.

Dundas & Wilson partner Paul Carter said: "A reinvigorated private sector brings with it demand for business space, and we hope to see those seeds of improved long-term prospects fully taking root next year in commercial real estate.

"It's clear that there is now significant tenant demand, and that's hugely positive for Scotland going into 2014.

"There are definite signs of recovery, and while it remains a slow process with a return to the pre-recession highs of 2007 unlikely just yet, the country has punched above its weight in many instances across the last year, recording some of the highest returns in the UK."

Between 2001 and 2007, commercial real estate enjoyed healthy growth, but it has faltered since.

However, sectors including retail, industrial and offices are showing strong performance, lead by the capital growth that has been elusive since 2010, according to the Scottish Property Quarterly report.

Offices were best performing sector in the third quarter of 2013, delivering a total return of 2.7%.

Mr Carter said: "New investment opportunities can now be considered with sustainable growth in mind. We believe that it all adds up to a positive picture."

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