While it will come as no surprise to learn that Edinburgh is one of the most active and most popular property markets in Scotland, many people may be surprised to learn it is among the top 12 property hotspots in the world. These statistics were calculated by IP Global and take in a number of factors including the number of property deals carried out. When we tell you that there has been a 50% increase in the number of property deals within Edinburgh in the third quarter of 2013, perhaps this reflects the ever-growing popularity of this Scottish market.
This data has been backed by an array of estate agents in and around Edinburgh who are experiencing a significant increase in demand from not only domestic investors but also international investors. It seems as though some savvy investors are now moving away from the London market, which has hit an all-time high, and looking to relatively low entry-level quality markets such as Edinburgh.
Scottish property in demand
When you bear in mind that Edinburgh is now in the same bracket as areas such as Dubai, Chicago, New York, Boston, Melbourne, Sydney and Tokyo (to name but a few), this reflects the strength of the Scottish property market. Interestingly there has not been such a rise in prices across Edinburgh properties although this is perhaps due to the fact there is at the moment significant supply to fulfil ever-growing demand. However, experts predict that this supply will not last forever and unless new property developments are announced in and around Edinburgh we could be heading towards a local house price bubble.
Quote from PropertyForum.com : “While there is advice aplenty for those looking to buy properties around the world nothing beats good old-fashioned experience. Have you been there, done it and worn the T-shirt? What advice would you give to others looking to buy property, whether experienced or perhaps a first timer.”
The situation with regards to the overall Scottish property market is also very buoyant with experts predicting house prices will rise by 18% by 2018. This would add an average £26,000 to the value of a property in Scotland amid signs that many of those in their twilight years are now looking to cash in and downsize. It will be interesting to see how the Scottish property market performs in the short to medium term and indeed whether international investors targeting Edinburgh then begin to look elsewhere in Scotland.
Will independence make a difference?
At this moment in time the polls suggest that independence will not be secured in the 2014 at the much hyped vote. As a consequence investment markets are not factoring in much of a risk factor in the event that independence was secured from the UK although in reality it is by no means a foregone conclusion. We may well see some jitters in the financial markets as we approach the independence vote in 2014 and indeed there are already suggestions that mortgage rates could creep higher in Scotland compared to the UK as a whole.
The fact is that nobody really knows how independence would impact life in Scotland as well as the investment arena. We have seen speculation and counter speculation, rumour and counter rumour with neither supporters of the UK or independence willing to show their cards just yet. Whatever happens, it seems as though the Scottish property market could well be the centre of attention in the short to medium term!