Scotland: The UK’s Northern Star

• Population: 5.51 million

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

• Economy: GBP195 billion

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

PROPERTY INVESTMENT IN SCOTLAND

Steeped in unique traditions and culture, Scotland is beloved across the globe. Known for the beautiful landscapes across the country as well as its remarkable architecture and history, it welcomes around 150 million visitors per year.

Scotland's renowned highlands span 10,000 sq miles and feature the UK's tallest mountains and the iconic Loch Ness, holding more freshwater than all lakes in England and Wales combined. Governed within the broader UK, Scotland's decisions on healthcare, education, and legislation are made in the Scottish Parliament Building in Holyrood, Edinburgh.

Scotland's reputation for resilience extends to its economy, which has demonstrated positive GDP growth over the past two decades, mirroring trends in the broader UK. It's an ideal destination for those seeking property investment opportunities.

Scotland in a snaphot

Population

Since 2000, Scotland’s population has grown by 8.9% up to 2023 when it stood at 5,517,330. It's population is expected to maintain a steady growth rate of around 8.9% until 2040.

Housing Market

House prices in Edinburgh have increased by an impressive 7.5% per annum over the past 5 years. House prices in the region are forecast to rise by a further 17.6% up to 2027.

Economy

In 2023, Scotland’s GDP is estimated to stand at GBP195 billion. It is forecast to reach GBP348 billion (+78%) by 2040.

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.

Discover More About Scotland

Read our investment case on Scotland to learn about the fundamentals that make real estate a strong investment choice.

GLASGOW: SCOTLAND’S LARGEST CITY

As Scotland’s largest city, Glasgow is a leading destination for economic output. With an estimated GDP of GBP30 billion in 2023, Glasgow produces approximately 14% of all Scottish output and is home to 28% of all Scottish companies providing a third of the country’s jobs. Glasgow is the number one UK Core City for producing the highest number of Financial and Business Services graduates, many of whom choose to remain in the city, bolstering Glasgow’s growing financial sector. This growing city is a good choice for those considering property investment in Scotland.

GLASGOW IN A SNAPSHOT

POPULATION

Glasgow Metropolitan Area is expected to grow at the same rate as the iconic cities of New York, Los Angeles and Paris. A statement underpinned by a projected increase of 175,000 people to the current 1.7 million inhabitants over the next 15 years.

Economy

In 2023, Glasgow's GDP was reported to be GBP30.6 billion and predicted to grow, reaching GBP58.7 billion by 2040.

Housing Market

Glasgow property prices are forecast to rise 14.2%, and rental growth 15.3% over the next 5-year period.

BENEFITS OF PROPERTY INVESTMENT IN SCOTLAND

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

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.

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.

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 Scotland

The best places to make a property investment in Scotland are where there is a strong rental demand. In Glasgow and Edinburgh, these areas are where there is a high density of student accommodation. Both Glasgow and Edinburgh are 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 Glasgow, the main student areas are closest to the University of Glasgow where there are ample amenities for the young population. The most popular area, within proximity of the University, is Hillhead. With great transport connections and a bustling centre along Byres Road, the area promises to be a lucrative choice for those making a property investment in Scotland whilst looking to tap into the high rental demand.

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.

Whilst Glasgow is considered one of the more affordable cities in the UK in terms of property prices and rents, Edinburgh which is more established offers a strong case for property investment in Scotland due to different economic fundamentals. For a worthy comparison, think of Glasgow as the Manchester of Scotland, whilst Edinburgh would be London.

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.

Want to Learn About Investing in Scottish Property?

Download our helpful guide on local laws, tax, mortgages, acquisition costs, lettings & management and more.

Our properties in Scotland

The Carrick

EdinburghUK

The Carrick is a new build development situated in the south-west of Edinburgh. On offer are 27 one-, two- and three-bedroom apartments set across 5 floors.

From gbp 237,000

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SOLD OUT

Bell Street

GlasgowScotland

Positioned in Glasgow, an award-winning city. Bell Street strikes an attractive balance between classic elegance and modern...

From gbp 138,000

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