The local authority said the work forms part of a wider approach to supporting development and attracting investment, including its ambition to increase the city centre’s residential population to 40,000 by 2035.

CBRE, with input from economics, policy and strategy consultancy Mandala Partners, will assess potential funding models that bring together public and private capital to address viability gaps and support development in central Glasgow.

Drawing on its knowledge of the city’s property market, its work with developers, investors and public sector organisations, and its experience advising on such impact funds throughout the UK, the team will examine how a fund could be structured and financed.

The assessment will consider approaches developed by local and regional authorities across the UK to identify a model suited to Glasgow’s development challenges and the Scottish funding context. The initial focus will be on central Glasgow, with scope for any future fund to be scaled up to the wider region.

The business case is being prepared in line with HM Treasury’s Green Book guidance and is expected to be completed by the end of 2026. Delivery of the business case is being overseen by a Glasgow City Council steering group comprising elected members and senior officers.

Preparing the business case is the first step in assessing whether a growth fund could be established. Any decision on whether to create one, and how it would be structured, will be taken by the council following consideration of the business case.

David Smith, executive director at CBRE, said: “Glasgow has the ambition and development opportunities to deliver substantial change across the city, but viability gaps continue to prevent that potential from being realised. A well-designed impact fund could be a catalyst for delivery, helping projects move forward and attracting the private investment needed to deliver new homes and meaningful regeneration.

“Glasgow City Council is taking a proactive approach to addressing these barriers, recognising the opportunity for new funding models to support the city’s growth. Commissioning this business case is an important first step. Strong partnerships between the public and private sectors will be central to that effort, bringing together the council’s ambitions with the capital and expertise of developers and investors to help make projects viable.

“Our experience advising on impact vehicles elsewhere, most notably in Greater Manchester, has shown how targeted public investment can stimulate development and attract private capital. We will bring that experience together with our knowledge of Glasgow to develop a robust business case and assess how a fund could best support the city’s growth.”

Councillor Ruairi Kelly, depute leader and convener for Housing and Development at Glasgow City Council, said: “We are constantly looking for new and innovative ways to unblock some of the issues facing potential development in Glasgow city centre and beyond.

“Developers are often faced with financial viability gaps when developing new buildings and repurposing heritage properties in the city centre, and the business case to be developed by CBRE will allow us to approach the Scottish and UK Governments to advocate for support and the creation of an Impact Fund for the city.

“This model has been shown to be successful elsewhere - similar funds have brought in well over £2 billion of private and public funding, and there is no reason we should not aim for this and more.”