Glasgow

98% of commercial property professionals surveyed have considered semi-commercial properties as an investment opportunity
42% already have a semi-commercial property
38% said meeting sustainability and environmental targets is a big challenge in delivering new student housing developments
62% of landlords were positive about announced government changes to the planning system

Commerce and the Clyde go hand in hand, so it should come as no surprise that Scotland’s largest city is also its busiest.

In 2025, Glasgow city centre continues its biggest transformation in half a century, including the revitalisation of one of the nation’s favourite shopping streets.

So, what are the commercial opportunities and challenges for Glaswegian property buyers? Let’s take a closer look at how the city’s Buy to Let, Office, and Retail & Distribution markets are performing and some of the trends shaping them.

City insights

2,501 properties in Glasgow City were empty for more than 6 months in 2024 (Dec 2024)
30% of landlords want the government to prioritise grants, funding and incentives to support property conversions
27% of landlords think Stamp Duty increases would be their biggest challenge in the next 12 months
1/3 of landlords use or plan to use rental income to buy a personal property to live in

Glasgow provides Buy to Let investors with a unique opportunity, when compared to English cities and Edinburgh. With average house prices of £184,000, properties in the city are much more affordable, whilst the rental average is comparable or higher than cities such as Birmingham.

Growing investment in the local area is expected to attract more job seekers to the region, which, in turn, will increase the need for more rental properties, boosting rental prices and prompting house prices to rise. Landlords in Glasgow highlighted energy efficient homes (27.2%), along with HMOs and shared living spaces (21%) as two areas with investment potential in 2025.

As well as sizable investment in the job sector, many areas of Glasgow have benefited from urban regeneration in recent years. Large-scale projects around the city centre look set to revitalise both residential and commercial opportunities, whilst projects in areas such as Govan and Calton could see them become the next hotspots for renters.

Renovating properties to let in Glasgow

Another advantage of lower house prices in comparison with other cities, and higher rental yields is that Glasgow-based landlords could access more capital to invest back into renovations; making their property more attractive to prospective tenants, increasing the value, and future-proofing against regulatory changes such as EPC requirements.

Buying at auction can be a great way to purchase properties with capital-growth potential, often at a lower price point than through more traditional methods. However, as many of these buildings need considerable renovation, it can be difficult to access the finance required through high street lenders. This can be due to the property being deemed ‘non-standard’ and the speed at which funds need to be available.

Specialist lenders, with flexible products such as bridging, can help landlords acquire these property types, making swift lending decisions and funds available quickly in order to make the required improvements to qualify for a lower-rate standard Buy to Let mortgage.

Check out how a residential bridging loan can get you from opportunity to investment.

Bridging loans

City insights

84% of commercial property professionals see office space as strong investment opportunity over next five years
29% increase in revenue expected in next five years
36% had seen more wellness-focused upgrades in recent refurbishments

In 2024, Glasgow’s office market saw an increase in the amount of floor space leased for the first time in two years. Whilst still far below pre-pandemic activity levels, it shows that demand for office space, especially Prime and Grade A, is high in the city.

But, with only 175,000 sq ft of new office space in the development pipeline for 2025, Glasgow could run out of quality floor space within the year. This could result in prime rental prices climbing from £41.50 per sq ft in Q4 2024 to £45 per sq ft by Q4 2025.

Commercial property professionals and investors surveyed in Glasgow reported that spaces designed with social value in mind (44%) and improved office amenities (44%) were the most popular trends in recent office refurbishment projects.

Refurbishing office space in Glasgow

In Q4 2024, there was over 2.8m sq ft of office space available in Glasgow, and vacancy levels hit 14.4%. So why are businesses in the city still struggling to find quality properties for their new offices in 2025?

Businesses aren’t willing to settle for anything less than the best when it comes to office facilities, and the majority of Glasgow’s available space is dominated by Grade B and C properties (1.5m sq ft). The issue is compounded by a lack of quality offices in development, with almost a quarter already preleased.

The solution for many business operators has been to improve their existing offices to meet business and energy efficiency standards. At Together, we’ve been able to help companies looking to extend or refurbish their existing premises, with a range of flexible commercial finance products including bridging and commercial loans.

Employees too are dictating what they want most out of their workplaces. The top three trends in office refurbishments in Glasgow all centre on improving the daily experience for workers:

Designing the space to be in line with social, economic and environmental values (44%)
Improving amenities such as coffee machines, water taps and kitchen facilities (44%)
Adding more wellness-focused upgrades such as gyms and relaxation rooms (36%)

Businesses that fail to meet these heightened employee expectations may find themselves struggling to attract and retain the best talent, losing out to competitors or remote working options.

We know that there’s often no time to waste in business. Find out how our capital raise bridging loans could provide you the short-term finance you need to make the needed changes to your office environment.

Capital raise bridging loan

City insights

£150 million to be generated by 2026 Commonwealth Games
523,000 sq ft Largest retail park in Scotland (Glasgow Fort)
80% confident that retail investment would be a good opportunity over the next five years
More chain restaurants and cafes opening on the high streets in the last 12 months. Chains – 28%, Independents – 22%
30% stated that ease of planning regulations and development opportunities played the most significant part in their commercial investment decisions

In 2024, Glasgow City Council unveiled wide ranging plans to transform the city centre. The plans will concentrate on improving the look and feel of key streets in the area, enhancing the shopping experience and creating fresh opportunities for retailers.

One such project, starting in early 2025, centres around the “Golden Z” of Sauchiehall Street, Argyle Street and Buchanan Street. As well as retail, it will include cultural attractions, open public spaces and a thriving hospitality scene.

It’s a similar ‘mixed-use’ strategy we’ve seen in other big city redevelopment schemes throughout the UK, integrating residential, retail, office, and leisure and hospitality properties in the same area to encourage people to visit, stay and spend in the city centre.

On an individual brand-level, this has also led to the rise in ‘experiential’ shopping, where the in-store journey isn’t just transactional but immersive, interactive and engaging as well, fostering brand loyalty and advocacy. 28% of our survey respondents in Glasgow said that the shift to experiential retail was an important factor influencing their retail property investment decisions.

Semi-commercial opportunities in Glasgow

Did you know that, in Glasgow, there are approximately 52 enquiries for every available residential rental property? That’s a staggering 33 more than the UK average.

It highlights not only the housing crisis in Scotland at the moment, but an opportunity for commercial business investors purchase retail properties with residential space attached (or unused space that can be converted into residential space) and generate a dual income.

With the Commonwealth Games coming to the city in 2026, and a growing tourism industry in general, landlords could look at the higher rental yield potential of short term lets. Or the properties could be ideal accommodation for the city’s growing student population.

98% of commercial landlords in Glasgow told us that they had considered investing in a semi-commercial property, with 42% saying that they already have one in their portfolio. However, 14% said that they weren’t confident on securing the funding needed.

If you’re looking to buy a mixed-use property for residential and commercial purposes and generate a dual income, our semi-commercial mortgages are on hand to help.

Semi-commercial property mortgages

Any property used as security, including your home, may be repossessed if you don’t repay your mortgage.

Together is a trading style of each of the undernoted companies, which have their registered office address at Lake View, Lakeside, Cheadle, Cheshire SK8 3GW. Together Commercial Finance Limited | Registered in England and Wales - Company Registration Number 02058813.

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