Demand for pubs in the West of Scotland is far outstripping supply because of the activity of the large pub companies, says agent Christie & Co. Many pub companies such as Punch have been looking to expand their portfolio north of the border and have been snapping up available freehold sites.
"The increased activity from many pub companies who have targeted Scotland to develop their tenanted/leased divisions has sparked many off-market deals with many private buyers missing out," said Brian Sheldon, director at agent Christie & Co (pictured).
While demand for the traditional village inn and town centre lock-up pubs is strong, the market for high street pubs is decreasing as many of the larger operators look to get out of the city centre circuit because of the high rents.
According to Mr Sheldon this is good news for the smaller pub companies and bar operators who he predicts will be the market drivers over the next four to five years.
"Up until now the major operators would have simply outbid the private sector in order to gain representation. This is no longer the case with many operators seeking to exit from the high rental outlets in the city centre," he said.
"The main players do not like the market being saturated but for private entrepreneurs there are opportunities to carve out a niche in the marketplace."
In 2002, Glasgow and the surrounding areas in West Scotland were already witnessing a demand for pubs far outstripping supply. Christie & Co had reported the highest number of sales ever in the area during 2002 and said it was witnessing a record level of interest in all properties.
In particular multi-purpose city centre venues were expanding in Glasgow's city centre and many first-time buyers and smaller operators were coming into the marketplace.
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