The research reveals that the average house price in Scotland’s capital increased by 10.2% in December 2017 compared to December 2016 (reaching a record high of nearly £285,000) and the value of the housing stock across the city grew by £7.5 billion from £61.4 billion in 2016 to £68.9 billion last year.
Edinburgh’s residential market profile continues to excel...strong domestic and international demand for property in the Capital is one of the main reasons behind a rise in prime values in Edinburgh City.Faisal Choudhry, Head of Residential Research in Scotland, Savills
This was more than any other Local Authority district in the UK as a whole. Leader Cast Prime transactions (above £400,000) in Edinburgh reached a record 1,733 during 2017, which was 15% higher than 2016. Transactions above £750,000 increased from 247 in 2016 to 274 in 2017.
The redevelopment of Edinburgh St James at the eastern edge of Princes Street is encouraging a gravitation towards the east of the city centre. Indeed, the highest number of new build transactions took place in eastern locations of the city around McDonald Road and Leith Walk.
Looking ahead, value growth across Edinburgh will continue, with some new build properties, at developments such as Donaldson’s, beginning to exceed £700 per square foot.
Faisal Choudhry continued: “There is a real sense of confidence in the Scottish market at present. While we are seeing an uplift in domestic wealth, the million pound market has been fuelled by buyers from outside Scotland and across the globe, with those buyers attracted by the comparative good value for money and quality of life...”