Edinburgh property market remains hot as demand continues to outstrip supply
Edinburgh’s residential property market continued to see fierce competition for family homes in the first three months of 2022 as flats regained renewed popularity after a pandemic-inspired hiatus.
In accordance with the global resurgence of urban marketsEdinburgh continued its strong performance.
Annual price growth reached 8.9% in March, the highest rate since the end of 2018.
On a quarterly basis, prices rose 2.5% from 1.8% in December.
This is the best performance since the start of the pandemic.
Agents report that the strongest competition among buyers is for large family homes, especially those with outdoor space, with evidence of large premiums paid.
Potential new buyers, in and around Edinburgh, were up 33% in the first quarter compared to the five-year average.
New orders increased by 4% over the same period, highlighting the supply/demand imbalance which maintained upward pressure on prices.
In line with other markets in the city, apartments are coming back into fashion as part of a trend that has seen the reopening of economies and the return to offices rebalancing demand between rural and urban markets.
While average house values rose 2.8% during the first quarter in Scotland’s capital, flats saw growth of 2%.
This meant that the quarterly price change between houses and apartments was the lowest since the start of the pandemic.
Since the market reopened in Scotland in June 2020, average house prices have increased by 21.1% compared to 7.8% for apartments, boosting the relative value of the latter.
Trading in Edinburgh was up 22% in the first quarter of 2022 compared to the five-year average and accepted offers increased by 16% as buyers continued to be attracted by the city’s broad appeal, which has attracted buyers from across the UK.
In this context, being a procedural buyer is important.
“Getting in a position to make a purchase is key.
If you are the subject of a sale, you are going to miss out because you will be competing with people who are ready to leave. » said Edward Douglas-Home, Scotland Residency Manager at Knight Frank.
However, with headwinds such as rising mortgage rates and inflation set to bite in the second half, price growth is expected to slow and end 2022 in single-digit territory as Recently released forecasts from Knight Frank indicate.