The capital of Scotland has a lot to offer, especially for investors interested to put their money in residential or commercial property. Edinburgh has recovered relatively quickly after the UK housing crash in 2007 and currently its property market is thriving with no signs of slowing down. So, why is Edinburgh a hotspot for property right now and, more importantly, what makes it the right choice for your next investment?
There is no doubt, the city itself is the jewel in the crown of Scottish cosmopolitan living. Its ancient history and prominent cultural scenes make it one of the most attractive tourist destinations in Scotland. Its desirability means Edinburgh is fast becoming a favourite amongst investors.
Edinburgh’s excellent rail links connecting it to the rest of the UK means it is easy to get to no matter where you are, whether you are travelling across Scotland or south of the border. With one of the busiest airports in the UK, Edinburgh also provides easy access to both Europe and the rest of the globe.
World-class higher education institutions attract a number of talented students from all over the world as well as entrepreneurs, as the city offers numerous opportunities for start-up businesses, thus expanding the demand for commercial office space.
Highly favoured by students and young professionals who later build their career and future here, it is not surprising that Edinburgh is predicted to be a city that will experience the greatest increases in property value by 2020, alongside the likes of other established cities such as Bristol, Manchester and Leeds.
Property experts Quarter Mileconfirm that it has much to do with the saturated property market of London; as it offers low rental returns and overpriced properties, many investors are turning to Edinburgh instead. Edinburgh’s stable economy, high employment rates, alongside its expanding business sector make property investment a secure investment. Accordingly, while attracting new businesses and investments, certain areas are becoming more desirable which helps stabilise the property market even further.
Whilst confidence in the market has grown, Edinburgh has seen a growth in property development also. The city’s current popularity has caused a demand for both luxury and affordable housing. With this in mind it is no surprise that Edinburgh’s property market is booming.
Companies are also particularly willing to invest into commercial areas due to the fact that the demand for the market is so strong. As soon as new offices are constructed, it invites existing and new businesses to the city. Alongside that, commercial and residential areas seem to be merging and supporting each other. As long as commercial property continues to appeal to a wider variety of retailers, facilities will keep improving to maintain the quality of life residents and tourists grow to expect.
The value of Edinburgh’s properties is steadily increasing and is set to maintain similar patterns in the future. This is a reflection of the growth of the city in general, with commercial activity and tourism stronger than ever before.
Whilst some express concerns about a property bubble that will one day burst, the common consensus is that the city’s property values are far from a crisis and that investments made today will more than likely reap benefits over the coming decade.
The Chancellor may have warned of challenging months and years ahead for the UK economy – particularly when considering the potential implications of an exit from the European Union – but there are cities around the UK that represent a much more volatile and uncertain prospect for investors than the Scottish capital.