Edinburgh: The UK’s North Star

• Population: 542,930

• Unemployment rate: 3.9% (2023) – down from 8.8% in 2010

• Economy: GBP 33.1 billion

Interested in Scottish property? Download our Scotland Investor Guide to learn about local laws, tax, mortgages, acquisition costs, lettings & management and more.

EDINBURGH: SCOTLAND’S HISTORIC CAPITAL

As the capital of Scotland, Edinburgh has become a bustling business, education and tourism hub that attracts talent, students and visitors from across the world. Edinburgh sits just 332 miles north of London accessible within 1 hour and 20 minutes by air, or in under 4 and a half hours by train.

Celebrated as one of the most beautiful cities in the world, Edinburgh’s distinctive sandstone architecture, green open spaces and lengthy history has earned the city UNESCO World Heritage status. The city’s charming New Town area covers over 450 hectares and is characterised by vast Georgian terraces dating back to 1767. Unsurprisingly, Edinburgh is regularly voted one of the world’s best cities to live in.

As a major capital city, Edinburgh benefits from continued investment and confidence from some of the largest and fastest-growing companies in the world, such as Amazon, Microsoft and IBM. Edinburgh is truly a beautiful place to consider when looking for property investment in Scotland.

Edinburgh in a snapshot

Population

According to Oxford Economics, the city of Edinburgh has 542,930 residents as of 2023. The population is expected to continue growing rapidly and reach about 580,000 residents by 2031, a 29% increase since 2000.

Economy

Edinburgh’s GDP has grown by a considerable 182% since 2000, totalling GBP33.1 billion as of 2023. The average GDP per capita has risen 134% since 2000 and is expected to increase by a further 75%, reaching a staggering GBP104,600 by 2040.

Housing Market

House prices in Edinburgh have increased by a staggering 49.3% since 2015. This trend is forecast to continue with house prices expected to increase a further 17.6% between 2023 and 2027.

BENEFITS OF PROPERTY INVESTMENT IN SCOTLAND

Relatively affordable property prices

Compared to other parts of the UK, such as London and the South East, property prices in Scotland are generally more affordable.

Strong rental yields

According to Zoopla's most recent report, issued in March 2024, Scotland is witnessing the fastest annual growth in rental prices among all UK markets, with a remarkable surge of 11.6%.In fact, Scotland stands alone among UK regions or countries in achieving double-digit growth in rentals.

Diverse and growing economy

Scotland has a diverse economy with a number of growing sectors, such as tourism, technology, and financial services. The tourism sector plays a vital role in the Scottish economy, attracting approximately 14 million visitors annually. In 2023, tourist spending represents about 5% of GDP, while employment in the sector accounts for over 7% of jobs in Scotland. This can help to support property prices and rental demand in the long term.

Growing student population

Scotland has a large and growing student population, particularly in cities like Edinburgh, Glasgow, Aberdeen, and Dundee. Since 2013, Scotland has become increasingly popular as an international student destination. In 2023, over 83,000 students from more than 180 countries enrolled in Scottish universities, constituting a quarter of the total student population. This creates a consistent demand for student accommodation, which could be an attractive option for buy-to-let investors.

See Our Properties In Scotland

Our Track Record For Property Investment In Scotland

IP Global has extended its reach beyond England to include the vibrant Scottish cities in its quest for prime property investments. Venturing into the Edinburgh property market in 2011, the company has committed over USD20 million across five discerningly chosen developments, amplifying its foothold in Scotland's capital.

In 2020, IP Global expanded its portfolio in Scotland by venturing into Glasgow with the Bell Street project. This strategic investment, valued at USD2 million, reinforces IP Global's reputation as an international investment company with a sharp eye for profitable opportunities across various real estate markets.

Frequently Asked Questions About Property Investment In Edinburgh

Where Are The Best Places To Make A Property Investment In Scotland?

The best places to make a property investment in Scotland are where there is a strong rental demand. In Edinburgh, there is a high density of student accommodation. Edinburgh has multiple world-class university cities and have high graduate retention rates. Many graduates choose to remain in the same areas, creating pockets of renters who start their careers in their university city.

In the Scottish capital, Edinburgh, the city centre proves to be the top choice, even with the higher price range. Areas such as Fountainbridge and Haymarket are popular choices for students and young professionals - each location provides plenty of local options for entertainment outside the city centre.

Our experts at IP Global analyse the markets and the rental demand to create cases to support which areas are the ideal places for property investment in Scotland. Explore our insights into the property market in Scotland, get in touch for a free consultation.

Is Property Investment In Edinburgh Cheaper Than In England?

Edinburgh offers an established case for property investment in Scotland due to strong economic fundamentals.

What Are Average Rental Yields In Scotland?

Scotland presents one of the best returns on investment in the UK for buy-to-let investors due to the high average rental yields. The average percentage of rental yields falls around 8%, a dramatic difference from the average rental yields in London which sit on average at 5%.

However, it’s not recommended to make a decision based on average rental yields as they don’t reflect the differences between rents for high-end properties in the prime market and more affordable properties in the mainstream market. For a better understanding of what yields you can expect from your choice of property investment in Scotland, we offer free consultations with our experts.