A thriving capital city, Edinburgh is home to a booming tourism industry, a skyline of historic attractions and natural beauty, a fast growing population, and a host of prestigious universities both centrally and in the wider regions. The city is well known for everything it has to offer, but why should you invest in Edinburgh?
With average house prices rising faster than any other of the top largest cities in Britain, Edinburgh is a hotspot for residential investment in the UK. According to the latest index from Knight Frank, the average prime property prices in the Scottish capital rose by 0.6% in the first quarter of 2019, bringing annual growth to 7.6%. This puts Edinburgh at the top of the list for the fastest growing prime markets in the UK, due to demand for family homes rising above supply. With the supply and demand imbalance, we can predict that the market value will continue to increase throughout 2019, helping offset any Brexit uncertainty in the coming months for those considering property investment.
Recent research from Savills has revealed that the city’s increasing economic growth is backed by its high employment rate of the working-age population, with a high percentage of that population working in affluent occupations such as the finance sector. This continual economic boost has led to a higher annual price growth as well as a 12% year-on-year increase in the transactional market in 2018.
Based on JLL’s capital growth predictions, Edinburgh is also a clear winner for Return On Investment (ROI) in the UK over the next 5 years with a 20.5% growth. So, if a residential investment property is purchased for £150,000 with all additional costs and gross rental yield accounted for, it would achieve an ROI of 144% over a 5 year period.
These figures combined with an expected population growth of over 100,000 over the next 15 years (Source: Umega Lettings), and a strong potential for residential investments and developments for students, families and working professionals, Edinburgh is arguably the best place to invest in the UK right now.
If you’d like to see the latest investment properties available in Edinburgh and the whole of Scotland, browse our dedicated property search portal for investment, development and auction opportunities here. We are the first portal of our kind, offering a unique way to find your next investment property for sale in the UK – whether you’re looking for a buy to let property or development land.