The nine places the real estate market boom completely missed
The markets are an example of what happens to real estate values when an economy is hammered and doesn’t receive the kind of financial support, like the furlough scheme, that kept the country afloat during the worst of the pandemic.
When the price of oil fell in 2016, property prices in Aberdeen fell by 20%, Mr Bain said. “Some apartments have fallen by a third.” Since then, values have slowly recovered along with oil prices, which plunged again during the 2020 lockdown.
That year, annual property prices fell 5.9% in Aberdeen and 3.6% in the county.
“When you take a lot of people away from the oil and gas industry, rental investors can’t charge the rents they want,” Bain said. In 2015, rental investors made up a fifth of apartment buyers in Aberdeen. “Now we don’t have any.”
In 2016, a one-bedroom apartment in Aberdeen cost £110,000. Today it costs £80,000, still 27pc less. “Apartment prices have fallen again this year. There is no competition at all. We ring a bell in the office if we sell an apartment,” he added.
But the housing market is getting stronger. The oil industry has since picked up, while the shift to remote working has led to an increase in demand for rural Scottish properties.
Before the pandemic, it was unusual for a property to have multiple offers. Today, two-fifths of home sales have closing dates for bidding.