Aberdeen is bucking the UK trend, according to new data from Savills, as prime property changes hands, and prices continue to rise. Despite the rest of the country market in Scotland remaining quiet, Savills have found strong evidence of local market strength spilling into the surrounding countryside.
Faisal Choudhry, Head of Research for the agent in Scotland commented: ‘Local buyers are not only investing in the Aberdeen area, but are now actively seeking homes in London, other second home locations, and accommodation for their children in university towns. The number of Aberdeen buyers, registering with Savills to purchase in other parts of the UK, has increased by 76% this year.’
Aberdeen continues to attract new buyers, including those relocating for employment in the energy markets, access to top quality educational facilities or a change of lifestyle. It seems that the top end of the market, above a million pounds, is where the Aberdeen area has shown its best performance. Whilst Scottish transactions at this level fell by 22% over the last five years, activity above a million in the Aberdeen area increased by 98%. The vast majority of sales in this price band take place in the upmarket residential areas of West End, Cults and Milltimber.
Whilst the average price across Scotland as a whole has remained unchanged, the average transaction price across Aberdeen City and Aberdeenshire increased this year by 5% to around £204,000. Mr Choudhry concludes: ‘We expect strong demand to support some of the larger residential developments planned in and around the City in the coming years. We predict the residential market across the Aberdeen area to continue its impressive growth over the course of 2014′.