Buying Property in Edinburgh: Best Areas to Invest

15 Jun 2023

Edinburgh, the capital city of Scotland, offers a compelling real estate market for investors seeking prime opportunities. The city consistently ranks as one of the happiest cities in the UK. It was also recently listed as #1 Happiest Place to Work due to a high median salary and low commute times. Edinburgh has seen some of the highest house price growth of all UK major cities and this trend is expected to continue for the foreseeable future as house prices are forecast to grow 17.6% between 2023 and 2027 alone. With its rich history, cultural vibrancy, and thriving economy, the city provides a favourable environment for property investments. We have outlined some key areas that investors should consider when buying property in Edinburgh.

 

Saughton:

Set in the south-west of the city, Saughton is a peaceful and quiet neighbourhood that offers a perfect balance between urban living and natural surroundings. The area is known for its beautiful green spaces, including Saughton Park, which is one of the largest parks in Edinburgh. The park features a stunning walled garden, a children's play area, and a variety of sports facilities, making it a popular destination for families and outdoor enthusiasts. With average prices more affordable than other sought-after areas of the city, Saughton offers a pocket of value in an otherwise highly priced market.

Saughton is also home to a range of local amenities, including shops, cafes, and restaurants, providing residents with everything they need for day-to-day living. The area is well-connected to the rest of the city, with excellent transport links, including regular bus services and easy access to major roads. To find out more about investing in Saughton, click here.

Edinburgh Castle, Scotland, from Princes Street Gardens, with the Ross Fountain in the foreground

Stockbridge:

Situated to the northwest of New Town, Stockbridge is a desirable neighborhood renowned for its leafy streets, independent boutiques, and vibrant local market. This charming area offers a mix of period properties, townhouses, and spacious apartments, making it appealing to discerning investors. Stockbridge's popularity stems from its idyllic surroundings, which include the picturesque Water of Leith and Inverleith Park. The area also benefits from excellent amenities, including high-end restaurants, cafes, and boutique shops. It is unsurprising that Stockbridge has some of the highest priced properties in the city with the average price currently standing at a substantial £504,476, pricing many people out of the market.

The area provides a stable real estate market characterized by elevated rental rates and this stability ensures that your capital value remains relatively safeguarded against market fluctuations. Moreover, the area does not suffer from an excessive saturation of residents, fostering a pleasant community atmosphere. With its blend of village-like ambiance and proximity to the city center, Stockbridge remains a great area for investors.

 

New Town:

Located in the city centre, New Town is an esteemed UNESCO World Heritage Site renowned for its Georgian architecture and exquisite townhouses. This area therefore offers more expensive properties than you'd find in surrounding neighbourhoods with prices for properties currently averaging £455,468. Yields are therefore typically on the low end, but the upscale nature of New Town has historically attracted buyers seeking elegant homes with a focus on capital growth and a low level of risk.

New Town boasts proximity to popular landmarks like Princes Street, the Royal Mile, and Edinburgh Castle, ensuring strong demand for both long-term rentals and short-term accommodation options. With its combination of historic charm, central location, and prestigious reputation, New Town presents a solid investment opportunity.

Warm sunny July weather in Edinburgh, with flowers growing outside the mews houses on Circus Lane in Stockbridge, Edinburgh.

Morningside:

Located to the south of the city centre, Morningside is a leafy suburb renowned for its elegant Victorian and Edwardian properties. The area offers a mix of spacious family homes, stylish townhouses, and luxury apartments. Morningside is well-regarded for its high-quality schools, vibrant local shops, and abundance of green spaces. The area is also home to key Edinburgh University buildings, making it an attractive destination for both professional buy-to-let investments and student accommodation. Properties in Morningside had an overall average price of £504,212 over the last year. Overall, sold prices in Morningside over the last year were 11% up on the previous year and 8% up on the 2020 peak of £467,713.

Investing in Morningside offers the advantage of a tranquil residential environment while maintaining excellent connectivity to the city centre. The area's strong community spirit and desirable amenities make it particularly attractive to individuals seeking a premium lifestyle and solid long-term returns.

 

With rents expected to increase by 16.4% between 2023 and 2027, Edinburgh presents an array of compelling investment opportunities for individuals looking to acquire properties. The highlighted areas of Saughton, Stockbridge, New Town, and Morningside offer a combination of historical charm, central locations, and distinct characteristics that make them stand out in the Edinburgh property market.

If you'd like to find out more about our latest Edinburgh investment opportunity, please don't hesitate to reach out to us here and we'll be in touch.

FAQs

Global Education Hub

Home to over 55,000 students and 6 universities including, The University of Edinburgh (UoE) which ranks in the top 30 in the world. UoE has over 32,000 students, of which around 47% hail from overseas. The university is amongst the top research universities in the world with 38% of its research rated World Leading whilst a further 45% is rated as Internationally Excellent.

Resilient Economy

Edinburgh benefits from a resilient economy and is forecast to have one of the lowest unemployment rates in the UK - reaching just 1.9% by 2035. Subsequently, the capital city has the highest disposable income of any UK city outside of London which is forecast to rise by a further 75% and reach GBP23,920 by 2035.

Housing Market Outlook

Because of extreme pressures on the Edinburgh housing market, the city is set to see persistent growth in both its sales and rental sector across the next 5 years. Sales prices are expected to grow by 17.6% between 2023 and 2027 whilst rents follow closely behind at a 16.4% increase over the same period.

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