Scotland: The UK’s Northern Star

Population: 5.51 million

Unemployment rate: 3.3% (2022) – down from 8.8% in 2010

Economy: GBP147 billion

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

SCOTLAND PROPERTY INVESTMENT

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.

The country’s famous highlands cover an area of 10,000 sq miles and host the highest mountains in the UK as well as the legendary Loch Ness, which holds more freshwater than all lakes in England and Wales combined. Being part of the wider UK, the governance of Scotland is heavily involved with decisions on healthcare, education and new laws all being decided within the Scottish Parliament Building in Holyrood, Edinburgh.

Scotland has long been famed for its resilience in the face of adversity and this reputation extends to its economy. In the past two decades, Scotland has shown positive GDP growth, mimicking the trend of the Greater UK.

Scotland in a Snapshot

Population

Since 2000, Scotland’s population has grown by 8.3% up to 2021 when it stood at 5,482,950. Scotland’s overall population growth is expected to reach about 5,518,250 residents by 2035, a 0.6% increase since 2021.

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 2022, Scotland’s GDP is estimated to stand at GBP 156.46 billion. It is forecast to reach GBP 178.93 billion (+14.4%) by 2032.

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 in a snapshot

Population

The city of Edinburgh has 532,200 residents as of 2021. The population is expected to continue growing rapidly, and reach about 570,000 residents by 2035, a 27% increase since 2000.

Economy

Edinburgh’s GDP has grown by a considerable 157% since 2000, totaling GBP29.4 billion as of 2021. The average GDP per capita has risen 117% since 2000 and is expected to increase by a further 75%, reaching a staggering GBP 96,456 by 2035.

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 GBP 23.66 billion in 2022, 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 which choose to remain in the city, bolstering Glasgow’s growing financial sector.

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 2021, Glasgow’s GVA was reported to be GBP 47.3 billion. GVA is predicted to grow by 25% over the next 15 years, compared to 13% over the previous 15 years.

Housing Market

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

Want to Learn About Investing in Scottish Property?

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

FAQs

The best places to capitalise in the property market are where there is a strong rental demand. In Glasgow and Edinburgh both, 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 close 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 investors 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 providing 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 our clients to invest. To tap into our insights of 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 investment due to different economic fundamentals. For a worthy comparison think of Glasgow as the Manchester of Scotland, whilst Edinburgh would be the 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. An 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 investment, we offer free consultations with our experts.

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

Tell me More
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

Tell me More
Global headquarters

Hong Kong

Suite 1001-1003, 10th Floor,
Harcourt House, 39 Gloucester Road, Wanchai, Hong Kong

+852 3965 9300+44 20 4586 4845enquiry@ipglobal-ltd.comFind your nearest office
Got any questions?
magnifiercrosschevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram