Scottish Market Update: Key Trends, Transactions and Outlook for 2026

Scotland’s business property market continues to operate against a challenging backdrop, shaped by persistent cost pressures, weaker consumer confidence, and ongoing economic uncertainty. Operationally, many businesses are also dealing with staffing challenges and workforce constraints, while uncertainty around government policy, taxation, and the wider economic outlook is weighing on business confidence.

Despite these challenges, there are some positive signs for Scottish businesses. Many firms are showing adaptability, with a strong focus on improving productivity, investing in digital technologies, and exploring new markets. A large proportion of businesses remain confident in their own prospects, even if they are less optimistic about the wider economy.

PUBS & RESTAURANTS

The Scottish pub and restaurant market remains resilient, with strong activity at the lower end of the market and more pressure on higher value food-led venues. Demand is focused on key cities and tourist locations where well-positioned assets continue to attract buyers. 

Rising employment costs and food inflation are impacting margins, while funding constraints are lengthening deal timelines and driving more flexible structures. Despite this, there is no widespread distress and Scotland’s strength as a tourism destination continues to underpin steady demand for well-located businesses with growth potential.

HOTELS

While concerns about the challenges in the hospitality sector have attracted attention in 2026, Scotland’s hotel market has also seen few distressed sales. Strong UK and international demand remains, particularly for prime locations like Edinburgh, Glasgow, Inverness, and established destinations such as Oban, Fort William, and Skye.

Premium prices continue for standout assets, especially in championship golf and resort locations, while Scotland’s appeal to investors remains resilient despite geopolitical tensions. Although some vendors are holding off, pricing has stayed stable for well-run businesses, even as operators face ongoing cost pressures from wages, utilities, and food inflation.

RETAIL & LEISURE

Following a strong 2025, the retail market remains buoyant, with good-quality convenience stores attracting strong offers across both leasehold and freehold opportunities. Demand is particularly high for high-volume petrol filling stations, with quality sites drawing multiple bids despite upcoming ICE regulations.

The garden centre market is also active, with several strong operators coming to market in early 2026, largely driven by retirement planning.

The leisure sector continues to build momentum, with increased instructions across holiday parks and visitor attractions, reflecting a thriving staycation market and attracting interest from private investors, new entrants, and experienced operators alike.

PHARMACY

More buyers are keen to purchase pharmacies in Scotland right now. First-time owners who recently bought Lloyds Pharmacy locations are looking to expand, along with established pharmacy groups who are also actively seeking new acquisitions.  This is driving prices forward in 2026, and banks are highly supportive and offer strong funding for these higher valuations.  As a result, current sale prices are higher than those seen between 2023 and 2025; however, there continues to be a shortage of pharmacies available to buy which will lead to more closing dates as buyers compete for the low volume of sites available. 

DENTAL

The Scottish dental market maintained strong momentum in the first half of 2026, with robust transactional activity and sustained demand across both NHS-led and private practices in city and rural locations alike.

Independent buyers remain highly active, supported by favourable lending and increased funder competition, enabling quick and competitive acquisitions. Demand spans first-time buyers through to experienced operators expanding portfolios, with pricing holding firm for high-quality opportunities.

While corporate appetite remains selective, there are signs of renewed interest in larger, multi-surgery practices. Overall, market fundamentals are strong, with high enquiry levels, competitive bidding, and growing confidence shaping activity as the year progresses.

CARE

Across the UK, the care home investment market continues to attract significant interest, particularly from US REITS, with Welltower acquiring Barchester, HC-One and Care UK, in multi-billion-pound deals.

We also saw a significant increase in activity across individual asset sales, with viewings up 38% on the previous year and offers up 54%, further highlighting the appetite in the sector.

Lenders remain supportive of new entrants and SME operators to expand in Scotland, which is positive as it increases the pool of buyers, promoting competition for saleable assets with buyers coming from as far as London to view homes in the North of Scotland.

CHILDCARE & EDUCATION

Scotland’s day nursery market remains resilient, supported by strong demand from both operators and investors. High-quality, fully managed settings, particularly those with strong Care Inspectorate grades and solid trading, continue to attract the most interest.

 While opportunities exist across price points, supply is weighted toward higher-value assets, with limited entry-level stock driving competitive bidding and quick transactions. The sector continues to operate within the 1,140 funded childcare hours framework, although delivery is becoming more varied as local authorities adjust funding models.

 The Care Inspectorate’s Quality Improvement Framework, introduced in September 2025, is also shaping the market with a greater focus on consistency and outcomes. Looking ahead, the planned expansion of funded provision to younger children is expected to further influence demand, creating both opportunities and operational challenges around capacity, staffing, and delivery.

VALUATION SERVICES

The valuation landscape has become increasingly focused on the quality and durability of earnings, with purchasers, lenders and valuers placing greater emphasis on maintainable profitability, operational efficiency and future capital expenditure requirements.  

Whilst pricing levels have generally remained stable, these factors are likely to remain key considerations in valuation assessments throughout the remainder of 2026 and into 2027.

Overall, the remainder of 2026 is expected to present a mixed picture for the market. Economic conditions are stabilising, and some improvement is expected, but growth will remain slow and uneven. Businesses will need to navigate ongoing cost pressures, cautious consumers, and global uncertainty, while focusing on efficiency and resilience. In this environment, success is likely to depend less on rapid expansion and more on the ability to adapt, manage costs effectively, and respond quickly to changing market conditions.

For more insights, read our Scottish Newsletter H1 2026 here: https://www.christie.com/news-resources/publications/scottish-newsletter-h1-2026/