Aberdeen’s historic Castlegate is poised to undergo a significant £20 million refurbishment, with works now anticipated to commence in March 2026. The project, a key component of Aberdeen City Council’s broader £150 million City Centre and Beach Masterplan, aims to revitalise the area, though local businesses are grappling with both the potential uplift and the challenges posed by continued delays and impending construction.
The extensive transformation of Castlegate is set to include enhancements such as a new cycle lane, improved lighting, and crucial repairs to the square’s distinctive cobbled surface. These improvements are designed to foster a more appealing and accessible public space, aligning with the council’s vision for a vibrant city centre. The larger masterplan, initially approved in 2015 and updated in August 2022 following public consultation, seeks to boost footfall and connect the city centre more effectively with the beachfront, making Aberdeen a more attractive destination for residents, visitors, and businesses.
While plans for the Castlegate refurbishment were initially announced in March 2025 with an expected start date in August 2025, following The Tall Ships Races, the project faced postponements. Council officials have attributed these delays to utility works involving Scottish Gas Networks and BT Openreach. Construction is now projected to last until Summer 2027, exceeding the initially suggested 12-month timeframe.
Councillor Alex McLellan, the council’s finance convener, expressed optimism regarding the revamp’s potential to draw new businesses and cultivate a thriving café culture in Castlegate.
He stated in an interview with the P&J: “There are already some really good businesses there, but there’s also an opportunity to embrace a café culture when the weather allows. it will be a place for everyone — for people to walk through, sit and enjoy. But it will also give businesses the chance to extend their footprint outdoors, which I think will be a huge benefit.”
However, the protracted timeline and impending disruption have raised concerns among local traders. Chantal Necchi, owner of Gio’s by La Lombarda, an Italian restaurant on King Street, described January’s trade as “exceptionally slow.” Gio’s, recognised as the UK’s oldest Italian family-run restaurant with a heritage spanning over 100 years, relies significantly on city centre activity and tourism.
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Research into urban regeneration projects suggests that construction can significantly impact nearby businesses, with restaurants and retailers particularly vulnerable to revenue losses due to reduced footfall and accessibility.
Necchi further emphasised the critical need for seamless integration between the Castlegate project, Union Street, and the beach area, as well as clear communication from the council to allow businesses to plan. “It will be a shame if they finish the beach and they finish Union Street and then they’re still digging this part up,” she added. “If they’re going to do it, they need to get on with it. We’re in limbo just now. It would be good to get updates so we can plan around it.”
Footfall data for Aberdeen city centre indicates a mixed picture, with overall visits in 2024 at 98% of pre-pandemic 2019 levels, outperforming national averages. However, Castlegate specifically experienced a 6% decrease in footfall year-on-year by May 2025. Upcoming events like the Spectra light festival (5-8 February 2026), Valentine’s Day, and Aberdeen Restaurant Weeks (23 February – 8 March 2026) are hoped to provide a boost to city centre activity, potentially offering some relief to businesses ahead of the main construction phase.
