An increasing number of high-end property investors, including many from overseas, are looking for prime central Scottish hotspots.
This has helped to boost property market activity in Scotland, with the residential market at its strongest since 2008.
Rises
Research conducted by Savills reveals that the number of residential sales in Scotland last year was 9% above the ten-year annual average.
The firm said that the Scottish property market lured more top-end buyers from outside of the country, partly as a result of more favourable exchange rates.
Andrew Perratt, head of Savills residential sales in Scotland, noted: ‘In times of political and economic uncertainty, high net worth investors are drawn to prime central hotspots which are considered safe investments and good value for money. That is exactly what we are seeing here: interestingly not only is there more investment from outside Scotland in residential property, but also in commercial and rural markets.’[1]
‘Scotland is being seen as a sensible place to do business and invest in land and property across the sector. Scotland is not depicted by boom and bust but by a healthy functioning market,’ he continued.[1]
Prime Scottish locations luring overseas buyers
Supply/Demand imbalance
A growing imbalance between rising demand and lack of supply in central regions is leading to increased price growth. This is now filtering through to the heartlands of Tayside, Stirlingshire and Fife.
In 2016, transactions and prices in Scotland rose by 3% and 3.5% respectively.
Faisal Choudhry, head of research at Savills, said: ‘Buyer sentiment across the UK market will remain sensitive over the next few years as the process to leave the EU unfolds. However, so far, the market north of the border as been more protected from political vagaries: we anticipate a slowdown in value growth and for realistic pricing to drive a continued recovery in transactions.’[1]
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/prime-hotspots-provide-safe-investments-and-offer-good-value-for-money