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Our exciting new research initiative: UK Cities DNA, explores the evolving DNA of UK towns and cities, exploring how macroeconomic dynamics and real estate needs intersect. In a series of 12 insight papers, we explore where these dynamics align and where there may be friction, providing a comprehensive look at the shifting landscape.

From broad macroeconomic trends to regional specifics, our series highlights key growth sectors, regional capital flows, and the future of infrastructure development. As the UK鈥檚 economic DNA changes, particularly in areas like technology, life sciences, and green energy, regional cities are playing an increasingly significant role.

With over half of inbound capital now flowing to regional markets, and a growing residential build-to-rent pipeline outside of London, this shift offers significant opportunities. In this article we explore how each region is evolving, with commentary from our partners in each area.

Scotland's growth potential: Energy, technology, and repurposing projects lead the way

Alasdair Steele, Partner, Head of Scotland Commercial, highlights Scotland鈥檚 growth potential:

• Scotland's energy sector: Aberdeen has a high anticipated growth rate for Utilities, with a strong transition from oil and gas expertise to renewables. Glasgow and Aberdeen are major hubs for the UK鈥檚 energy sector, particularly renewable energy, with Scotland aiming to generate 50% of its energy from renewables by 2030.
• Growth in Information and Communications: Glasgow ranks second for Information and Communications growth, with Edinburgh close behind. This reflects the country鈥檚 evolving economic landscape.
• Edinburgh鈥檚 economic strengths: Edinburgh remains a key financial services hub, and is expanding into Telecoms, Media, and Technology (TMT), alongside life sciences. Quality of life in the city is high, attracting tourists and graduates from the city鈥檚 universities, which drives its infrastructure growth.
• Glasgow's dynamic growth: Glasgow is diversifying beyond its historical base in professional services, insurance, and finance into sectors like life sciences, fintech, and creative media. The city embraces change and adapts to the global economy.
• Repurposing projects: Both Glasgow and Edinburgh are seeing successful repurposing projects. In Glasgow, secondary office buildings are being converted to Purpose-Built Student Accommodation (PBSA), and in Edinburgh, office buildings are being repurposed for hotel use. The redevelopment of the Love Loan area in Glasgow is a key example of successful repurposing.

Newcastle's dynamic growth: Education, international investment, and real estate Development

Patrick Matheson, Partner, Newcastle Commercial, explores the view from the North West:

• Education and skills: Newcastle鈥檚 higher education institutions, including Newcastle University, Durham University, Sunderland University, and Northumbria University, are essential in providing a skilled workforce, attracting investment, and driving innovation in sectors like digital services, life sciences, and subsea & offshore industries.
• International trade and investment: The region benefits from significant foreign direct investment (FDI), with Newcastle attracting global attention, especially after the PIF investment in Newcastle United. This has led to increased interest from Middle Eastern investors.
• Real estate market impact: The Nissan factory in Sunderland has stimulated demand for industrial real estate, and the development of key infrastructure projects like the proposed International Arena and Conference Centre in Gateshead Quayside and the Crown Works film studios in Sunderland is expected to have a substantial impact on the local economy and real estate market.
• Public and private sector collaborations: Successful collaborations like Newcastle Helix, a joint venture between Newcastle City Council, Newcastle University, and Legal & General, have fostered innovation in the tech and science sectors and revitalized the city鈥檚 economy.
• Repurposing projects: An example of successful repurposing is the transformation of St Ann鈥檚 Wharf on Newcastle Quayside into a luxury 5-star hotel. This project demonstrates the viability of repurposing older buildings through strategic investment and collaboration.

The North East is a key player in reshaping the UK鈥檚 economic landscape. From Scotland鈥檚 shift towards renewable energy, to Newcastle鈥檚 focus on education and international investment, both regions present exciting opportunities for future growth. These evolving dynamics position them to continue driving regional and national development, offering an optimistic outlook for their economies.

In our second article exploring the UK Cities DNA Compendium, we look at the growth of Cardiff, Leeds, Manchester and Birmingham.

To read the full UK Cities DNA Compendium: 

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