Glasgow’s commercial property sector to get a £3.7 million bailout

In a move aimed at protecting the city’s commercial property development from the effects of the credit crunch, the Glasgow City Council is planning to introduce a range of measures.

In the city’s own version of a stimulus economic package, Glasgow plans to make available £3.7 million in stopgap funding to property developers. This move is among several other measures proposed to prevent aggravating an already unstable situation.

According to a recent city council report, there is an estimated worth of £4.65 billion property development either in the planning stages or under construction in Glasgow. But, with a rising credit freeze in bank lending’s, and rampant job cuts as businesses cut back on costs, and offices spaces becoming increasingly difficult to sell, property developers are either withdrawing from proposed projects or postponing them till a recovery is seen in the economy.

The commercial properties in Scotland have seen a dip of 20% in their value, over the past year. The city council hopes that with the introduction of new measures, the once-booming property development in the city revives.

The finance for the city council’s action plan will be from the £37 million Better Glasgow Fund that is normally reserved for restoring initiatives, such as heritage building, lighting, promoting green space.

The city council hopes to infuse flexibility in Glasgow’s development process and is willing to help property developers get through this hard time.

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