Despite indications of an all-round recovery, Jim Fiddes, a senior partner in the Edinburgh-based Ryden property firm, said he believed the Scottish economy was best placed to fight its way out of the doldrums.

Mr Fiddes said: ''Our economy is continuing to outperform the rest of the country.

''Traditionally, we don't suffer from the high and lows you get down south, there is a greater degree of stability.

''I feel there is reason for optimism. There is a lot more money coming into property investment, although not an awful lot of development is taking place.'' Prime rents in Scotland's two main cities, Glasgow and Edinburgh, have dropped this year from around GBP20 (HK$237) per square foot to GBP18.

In retail, prices have held firm. Shops in Edinburgh's Princes Street are commanding the same rents as this time last year.

Mr Fiddes also said there was a growing trend towards retail warehouse ventures, particularly on the outskirts of cities and towns.

Consumer spending has risen more than other parts of Britain, partly because traditionally there is less house buying, leaving people to dispose of their income in other ways.

Shopping chains and discount stores are expanding their operations throughout Scotland.

For the first time since records began, Scotland's unemployment level is lower than the southeast of England.

This is not a sign of Scotland doing well but of the crippling effect the recession has had on the prosperous areas in and around London.