New research reveals that the Scottish capital saw the greatest property market growth in 2017
According to the latest recent report from Savills, which was launched to 500 representatives of the Scottish property sector, Edinburgh’s residential property market saw higher levels of growth than any other UK city last year. To residents of the capital it won’t be surprising to hear that the lure of living in Edinburgh has never been greater.
Savills Head of Residential Research in Scotland, Faisal Choudhry, explained that “Scotland has witnessed its strongest market since 2007” and is “now outperforming London” in terms of city housing economics.
“In particular, Edinburgh’s residential market profile continues to excel. The lack of supply and strong domestic and international demand for property in the capital is one of the main reasons behind a rise in prime values in Edinburgh City.”
The research reveals that the value of the housing stock across the city grew by £7.5 billion last year, from £61.4 billion in 2016 to £68.9 billion in 2017. This was more than any other Local Authority district in the UK.
This report shows how Scotland’s market is surging following a slow start in the early months of 2017. Now however, the number of million pound transactions taking place in Edinburgh is indicative of its increasing desirability. According to Savills’ report there were 173 transactions in 2017, and 117 of these took place in the second half of the year. This sees a rise from 167 transactions in 2016.
The proportion of million pound transactions across Scotland is becoming increasingly focused on the capital, which boasted its highest annual figures since 2007 last year. Choudhry said:
“There is a real sense of confidence in the Scottish market at present. While we are seeing an uplift in domestic wealth, the million pound market has been fuelled by buyers from outside Scotland and across the globe.”
So what attracts people to invest in Edinburgh? According to Choudhry, it’s the combination of a “comparative good value for money and quality of life.”
But although the city itself is in high demand, the suburban areas around the city are also catching people’s eye.
East Lothian overtook both Glasgow and Aberdeen last year for million pound sales, helping it rise to second place on the league table. The area had 10 million pound transactions, mostly concentrated in North Berwick, Archerfield and Inveresk. Meanwhile, Midlothian had its first million pound transaction in three years, and West Lothian saw its first million pound sale since 2015, with two transactions taking place in West Calder and Linlithgow.
Similarly, the southern hotspots of Merchiston, Grange and Morningside accounted for the largest proportion of activity within the market, with a total of 377 transactions taking place in 2017. This helped them overtake even Edinburgh’s central luxury property hub: the New Town. Other suburban locations like Liberton and South Queensferry also saw some of the highest sales volumes.
As well as suburban properties being in high demand, it also seems that new builds are the most popular kind of property, according to Savills’ research. In 2017, the number of new build transactions taking place in the city grew by 30%.
The report predicts that the rise in value across Edinburgh will continue, as more and more people fall in love with the charm of this incredible city.
Looking for a new home in Edinburgh? Explore our stunning new development at Craighouse.