Edinburgh’s Property Investment Market

The most widely acknowledged facts in property is that London’s market is always more than the national average; the same is true of Edinburgh and the Scottish market.

Famed for its historic centre and desirable suburbs, Edinburgh has been ahead of trends in the Scottish property market for well over a decade. Like London, there is always a high demand for the sought after areas of the city, forcing rental prices (especially in the city centre) far above the national average.

Whilst it is also true that the purchase price of property in the city is also well above then average, the city’s growing student and young professional markets are offering large returns for investors across the city. In fact whilst the national average monthly rent (according to a recent property market study) has just gone above £720 for the first time in Scotland, Edinburgh’s monthly average has recently surpassed £850 and is heading quickly for £900.

The same study also showed that 23% of property in Edinburgh is now let in under a week, and an enormous 68% being taken up within a month; an increase in pace from Q2 last year when two and three bedroom properties were taking 31 and 35 days, respectively, to be let.

High standards of living and above average income levels – especially for those in the city’s large financial and other professional sectors – coupled with limited housing stock in the city centre form some of the central driving force behind the capital’s booming rental market; adding in prohibitively high prices for first time buyers in the city suggests that the demand for high quality rental property is not going to decrease any time soon.

Interestingly for property investors, the resurgence of Leith as a place to live and socialise is adding a new dimension to the city’s property map. Property and rental prices near the shore are not as high as the city centre, and with the area’s ‘up and coming’ feel, increasing level of amenities and easy commute to the city centre, it is attracting younger audiences who have money to spend. Holding an increasing proportion of Edinburgh’s creative industries, Leith has become more of an investment opportunity than ever before.

Those investing in the city centre though are also presented with a growing student population, and flats which can be rented out short term in the summer for high return – and higher still during the festivals. Four universities and the largest arts festival in the world every August are attracting much investment.

This year the festival was larger than it has ever been – breaking records set only last year – and shows no sign of stopping this trend. Flats that are occupied by students are free during the lucrative summer months, offering a great way of boosting annual return with such a competitive market.

From the fleeting festival goers to the year-round population Edinburgh’s insatiable demand for rental property is making it perform well above the national average. Less time lying empty than last year and new areas opening up mean there are many factors making the city attractive to investors; and if the trends are to be believed there seems little or no indication of this changing anytime soon.

For further information about investing in the Edinburgh property market please contact Glenham Property who offer a search and investment service and can also look after your property management needs.

28 Forth St, Edinburgh, Midlothian EH1 3LH

Phone: 0131 557 5101

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