07 Jun 2016

Scots property market worth £150billion over past decade

Scots property market worth £150billion over past decade

 

The total value of the residential sales market in Scotland from 2006 to 2016 was just over £148.2 billion, according to a new report published today by Registers of Scotland (RoS).

The fourth annual publication of RoS’ 10-year property market report details the trends in the land and property market over the decade’s peak years, and in the wake of the economic downturn.

Kenny Crawford, RoS’ director of commercial services, said: “The Scottish property market is a significant contributor to the Scottish economy. In 2015-16, the total value of residential sales alone was £16.7 billion.

We’ve also seen an increase in average house prices over the decade, up 19.7 per cent between 2006-07 and 2015-16, from £139,207 to £166,624. This compares to a rise in median gross annual earnings of 22.6 per cent between 2006 and 2015.”

Increase in million pound sales

Supported by official statistics, RoS’ 10-year property market report draws data from every property transfer in Scotland, including those that do not include a mortgage, making this the most comprehensive property transaction report in the country.

Further key findings revealed in the report over the last 10 years include:

  • a 16.9 per cent increase in the number of residential properties sold for over a million pounds
  • a drop of 36.9 per cent in the number of sales being registered with a mortgage
  • an increase in commercial leases, from 908 in 2006-07 to 3,026 in 2015-16

Aberdeen leads the way

Over the 10 years, all local authority areas recorded an increase in average price, the highest being Aberdeen City, with an increase of 52.7 per cent, rising from £140,842 in 2006-07 to £215,037 in 2015-16.

Average prices grew the least amount in Glasgow City, where they rose 3 per cent from £133,504 to £137,474.

The City of Edinburgh consistently held the highest average price across the decade, with the exception of 2013-14 when both Aberdeenshire and East Renfrewshire surpassed the capital with average prices of £218,088 and £217,544 respectively, as compared with £216,950 in the City of Edinburgh.

Bob Fraser, Senior Property Partner at Aberdein Considine, said: "The oil and gas industry slowdown has cooled the Aberdeen market in the past 18 months, but over the past decade, it has proved to be a fantastic investment.

"It is now a buyer's market in the region. However, I think another double-digit growth over the next decade is possible, so now is actually a good time to take advantage of competitive prices and buy.

"Nationally, what I would say is that while we have seen good growth since the recession, the volume of sales still hasn't reached the levels we saw prior to the financial crisis.

"This tells me that there is still room for growth and that we will continue to see prices rise, particularly in places like Edinburgh and Glasgow."

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